All Forum Posts by: Eric Malone

Looking for some advice. Im in the Refinance part of BRRRR and heres the situation.

Currently have 200,000 mortgage @ 3.5% for 30 years. Monthly payment $1300. Rent i receive is 2200. 

Im Cash out Refinancing 75% and have been offered a new mortgage of 275,000 @ 5.2% for 30 years and would be walking away with 47,000 Cash for my next investment. New Monthly payment would be $1825. And Rent i would receive would be 2200. 

Is it worth refinancing? at a higher rate. Ive shopped around they are all around the same higher interest rate. Looking for some advice. 

@Vincent Morales thank you for the great advice.

Im a newbie to investing as well to the Brrr method but here's the situation. 

I bought my condo for 225,000 with 3% down 3 years ago. 

I owe 199,000 to a mortgage @ 3.5% for 30 years. 

Property Assessment @ 335,000 (as of now) 

Mortgage payment $1200 plus 150 for HOA = $1350 Per Month

I rent it out at $2200 Per Month 

My question is should i refinance? and what should i refinance for (amount)? Or should i get a HELOC. I would like to reinvest but im unsure on what to do next. I have only 5000 cash on hand. But i would like to get another investment property. Any help would be great.

@Wyatt Fisher Great information, so for example on a $100,000 (rental property) i would use my $30,000 heloc (20,000 as down payment 10,000 for rehab.)  Then make sure the new rehabbed rental property would appraise at $135,000. Then i would cash out refinance for $135,000 and pay off the original loan of 80,000 and use the remaining 55,000 to pay back the 30,000 heloc and use the remaining 25,000 for the next down payment for the next property. 

Did i get this right? i just want to make sure i fully understand. 

Thanks

 

Please explain how this works. Im looking to take out a heloc on my first first property and use it as a down payment on a rental property. What i dont understand and need help breaking down is im told to refinance the new rental property which would then pay off my heloc. Then i would just repeat.  How does this work? and explain how refinancing would pay back my heloc.