All Forum Posts by: Catherine Karaszewski

Thanks David. I didn't think about 2 loans.

Thanks guys. Kathy, we are still living in the house. If I do a cash out refinance or HELOC, I would use that money to purchase another house to live in while fixing it up. Then, refinance that house after bringing up the value.

Are you leaning towards refinancing & renting VS selling outright?

Hi everyone! My name is Cathy & I could sure use some advice. I’ll try to make this as short as possible. I’m 62 ½ years old. I plan to work another 4 years. I would like to cash flow $4000 a month by then. I’m married & my husband has been in the construction field for over 40 years. He’s a carpenter so we do our rehabs ourselves only subbing out major electric or plumbing.

I own a house that we have rehabbed over the last 4 years. Paid $180,000 and it's now worth $300,000 (I owe $169,000). My total payment right now is $1216.00. That includes a PMI of $145 and the interest rate is 4.375%. As I see it, I have 3 options and if there's another, please let me know.

1. Sell the house outright. I would not pay capital gains taxes because I’ve lived there the last 4 years. I would have to pay closing costs. I would then take the money to pay off a few bills (listed later), buy more properties and start the Brrrr process.

1. Cash out refinance at 80% ($240,000), keep the house & rent it out for cash flow. I could rent for between $1800 & $2000 a month (I'll have to research that a little more to get more precise). I would have to pay closing costs, but I would get rid of the PMI I have now ($145 a month). I could then take the cash and after paying off my bills use that money to start the Brrrr process.

1. HELOC. No closing costs, but I know there would be some fees. Pay off those bills & use the money to start the Brrrr process. Keep the house & rent it out for cash flow.

The bills that I would pay off:

1. Car $6000

1. Loan $10,000

Right now, I feel stuck because I don’t know enough about investing to pick the right one for my situation. I don’t know that if I went to a bank that they would give me advice that would be best for me or best for them. Any help/advice would be GREATLY appreciated. Thanks in advance.