All Forum Posts by: Eric Merritt

Obviously, every situation is unique and there are a million ways you could go, so I’d say go with what gets you excited  

1. Cash out refinance on MI property. I am currently refinancing an investment property and am getting a rate of 3.5% on a 30-year fixed. That's hard to beat. Figure out what amount you can take out so that the MI property will still provide you solid ROI and CoC returns.

2. Get pre-approved for a purchase. If you willing to relocate (and your current residence will cash flow), you can get a low money down loan on a new residence (ideally a house hack). If not, then I would be looking to scale into small multi-family (2-3-4 plex) that you can do some value add with light rehab. It’s still a residential mortgage just with higher down payment requirements on a conventional loan. With your experience in owning 3 units this would be a great next step for you. 

3. Cash flow has now increased, save your profits to reinvest, rehab your multi-family, refinance, recapitalize and invest again. 

With your equity you are in a strong position to make some good moves. Just remember, take your time, buy at the correct value, establish your systems early and know what your goals are, when and how you want to get there, and what your plans are when you do. Good luck with everything and keep us posted. 

Thank you for the response sir. I would agree on the multi-family part it's been a thought here lately and if that opportunity arises I'm going to take it. My primary residence is financed by my VA loan. I'm actually actively seeking a property to build my forever home on in hopes that i bring up the total overall value to do a cashout refi in order to reinvest in other real estate.

@Eric Merritt If you have systems in place in both markets I would look at which area is likely to give me the best return in my investment. $80,000 will give you a nice down payment, or if you take some money out of your MI property you could find something larger/nicer or a couple properties depending on price point and your goals.

Personally if I was comfortable investing OOS and the returns were both comparable I would look to MI for my next property since you have 2 in NC and only 1 in MI. I would diversify my locations.

A cash out refinance can pull cash out and give 30 year time line to pay back, at lowest historical prices.  HELOCs will adjust, and are revolving.  However, there are first position HELOCs where you can draw and pay back repeatedly.  Ridge Lending offers that product, called the ALl in One, which is terrific for high FICO score folks.