sacrifice cashflow for another rental property?

Question

Since the interest rates dropped I decided to refinance my rental property into a 15 year mortgage which raised my mortgage $200. The mortgage now is $1200 and im receiving $1750 per month in rent. I just received the appraisal that needed to be done prior to closing of the refinance and realized it was appraised about $60k more than I was expecting. right now i'm kicking myself for not keeping the cheap 30 year mortgage and doing a cash out refinance and buying another property. I believe I can call my lender in 6 months and do a cash out refinance but that will most likely take away the cashflow im receiving from this property.

im writing this post see if sacrificing cashflow for another property would be worth it or if refiancing to 15 year was my best option?

Greg McGuire · Answer

you did not need to refi. You can ALWAYS pay down your mortgage. You just limited your options by doing the 15 year. Someone gave you bad advise. Find a new lender.

Mack Benson · Answer

Leverage is one of the most magical things a real estate investor has in their toolbox. If you can go back to a 30 year with the ridiculously low interest rates we are seeing, get cash in your pocket to purchase another property, purchase that property and cash flow on both of them I think you will be in a better position than with a 15 year on a single property. Refi and roll! The key is to not be over leveraged, and be sure you are conservative with your underwriting.

Julio Garcia · Answer

Get another property!