When to refinance?

[Alex O.]

Hi,

New to this- Is it better to cash out refinance ASAP and pay the monthly refinancing premium while holding the cash until we find the next property to invest (which can take more than six months) or do we wait until we find the next investment property and then refinance while purchasing it?

Thank you.  

[Jenna Parker]

Quote from @Alex Bekeza:

@Alex O. Cash out refinance at the earliest opportunity if you're actively planning on expansion so that you ACTUALLY possess that dry powder to take down the next deal and have eligibility for a pre approval on the purchase loan.  You'll stress yourself out trying to time a cash out refi and purchase too close to one another if one is contingent on the other. 

This. I would definitely cash out as soon as you can, at least a month or two before your next purchase. You might come across your next investment sooner than you think. Trying to refinance and simultaneously acquire your next asset could really put a strain on your closing timeline/contract date.