Rehab or refinance multi family

[Alan Carranza]

Hello everybody. New to real estate investing and the forum here and really happy I joined. After some personal issues I’m financially ready to start investing.

I Want to get your expert advise:

I currently own a multi family property In Ventura county. The property is comprised of 3 units, a main house , a guest house and a studio. The property is paid off and I got it appraised almost 2 years ago (by a registered appraiser) and it appraised approx $675,000. I also completely renovated the studio 3 years ago. Although I have kept up with repairs, the main house and guest house could use some renovations (kitchen, bathroom, new floor). I currently rent all 3 units. The property is paid off and have plenty of equity in this property to start investing in a Brrrr strategy.

My question is:

Should I refinance, rehab, rent, repeat my property? Or just refinance and go buy an investment property?

May seem like a straightforward answer but just want to get expert advise. Thanks for your time.

[Michael Doherty]

@Alan Carranza Just compare what closing costs, debt service and interest rate would be if you did a cash out refinance. If you can do a Cash out refinance and pay 4% interest rate, cash flow and use that cash to make more than 4% then its a no brainer. If that doesn't seem possible just do a HELOC and tap into the funds when you want.