All Forum Posts by: Denise Fitzgerald
Denise Fitzgerald has started 1 posts and replied 2 times.
Post: Should I refinance a 15 year to a 30 yr to gain cash flow wAirbnb
- Meridian, ID
- Posts 2
- Votes 0
@John D. Thank you for your advice appreciated. I ran the numbers and if I don't refinance my cash flow will average $1,000/mo and if I refinance will average $1,500/mo (for short term/vacation rental).
Right now the property is just being leased/one year --- I have no cash flow. I can make cash flow I just need to wait for the renters lease to be up June 1. I have about half of the furniture needed to furnish and decorate for short-term rental (VRBO, Airbnb, Vicasa). So I will have to invest about $1,500-$2,000 to finish furnishing the entire place. It is brand new and in a highly desirable area in my city. 3 Master Bedrooms/3.5 baths 1900 square feet. My cash flow numbers are not solid they are based on the market and my research. My husband an I ran the numbers and it just does not make sense to refinance the property. I do appreciate people on here giving me advice. The low interest rate I cannot give up especially since rates have risen quite a bit since then.
The place will be my second short term rental property. I will make it work and be profitable (cash flow).
Then on to look at other deals.............
Post: Should I refinance a 15 year to a 30 yr to gain cash flow wAirbnb
- Meridian, ID
- Posts 2
- Votes 0
I currently have a 15 year mortgage on a rental home I bought 8/1/16. My rate was 3.25% I have a renter in the home and I just break even every month. When I bought the home I was not interested in cash flow, just pay it off and later reap the benefits.
I would like to refinance the home into a 30yr so I can get cash flow and the rates are looking higher now 4%-4.5%
The renters lease is up June 1st. At that time I would like to use the property as a vacation, short term rental. I will put the place on several websites and Airbnb/VRBO. I have another property I have been successful with for 3+years for vacation/short term rental. I have 300+ reviews on Airbnb for the other property.
If I get a 30 year mtg. I am looking at cash flow of $1,500/mo after all expenses are paid that would be average monthly. Some months will be less and some months will be more but the average would be $1,500. Please remember I have 3 years of experience managing another short term vacation rental.
I would appreciate any advice on what to do financially. I just don't know if it makes sense.
Thanks in advance --- Denise