Asking for guidance from NYC! - My first property

[Shavine Bipat]

Hello BiggerPockets Team: 

I listened to your podcast for a couple of years now and I finally managed to purchase my 1st home in 2020 with encouragement from everyone you had on your show. I am now hoping your team can help guide me before I do something stupid! 

Here is an outline of my situation

- I bought my 1st home in Queens, NY in 2020

-My home is zoned for a legal 2 family and I have a copy of the Certificate of Occupancy. However, when I purchase the home it was being used as a single family, therefore, the loan I currently have is for a single family.

- When I bought the house, I renovated the apartment and it is currently being rented out.

- My question is do I do a cash out refinance or take out a HELCO (the mortgage broker I used originally advised that)? My goal is to pay off bills from the construction, remove my co-singer, and purchase another property out of NYC. 

- The loan is an FHA at 3.25%

Please help before I do something stupid!!! 

Thank you,

Asking for guidance from NYC!

[River Sava]

Hi Shavine - 

Congrats on purchasing your first home and making significant progress! 

Considering your goals of paying off construction bills, removing your co-signer, and investing in another property, a cash-out refinance could be a viable option as you would be able to tap into your home's equity. The downside would be saying goodbye to the 3.25% rate you have now, but it might be worth it to take next steps for your goals.