Refi or not?

[Roger Mbah]

Hello, 
I'm new to the platform and have a newbie question. So I've been in my primary home for 2.5years. When I bought it, interest rates were really good so I ended with an interest rate of 2.83%. I also did some rehab by adding an ADU to the basement. I also spruced up the first and second floor to suite my taste. Recently, I installed solar panels on roof. So as you can imagine the property has accrued a decent amount of equity. So now that I turned on my real estate investment switch, I'm thinking, should I refi, pull out part of the equity and use that as down payment for my next property? The main concern here, is I'll be jumping from 2.83% interest rate to over 7% interest rate.

[Elvise Atem]

why don't you think of using a HELOC? used as a down payment on a new property and if you can CF from it, use that to pay down your HELOC. your basement is also I good one to help pay down the HELOC while your new property appreciates. Good thing you added value with your money, so no interest on that.

Be mindful of location though.