All Forum Posts by: George Mully

@Taylor L. @Steve Morris 

I understand what everyone is saying. My concern is the coc return on my current home would be 6.3%. When the market has a historic return of 7%, this rate is too low with the headaches that accompany it.

Then if I refi I am basically paying the bank to use my own money. That’s how I see it.

I’m trying to decide if the best option is to sell and use that money to buy a new primary residence and an income property.

I'm in a particular spot where I have my primary home with a LTV of ~20%. If I'm looking for a high CoC return, it doesn't make sense to me to rent out my current home if I have so much cash already invested. On the other hand it doesn't make sense to refi or take cash out because I will basically be paying the bank to get my own money out and I will be charged for it. My current loan is lower then current rates and home value has appreciated 20%.

The idea being I would rent out the home and use the cash out equity to buy a new primary home. I'm new to this and know know use cap rate a lot but I think CoC return is a better metric. If I rented out right now CoC would be 6.3%

Given the current environment there are homes in my neighborhood that haven't been rented out in months. I'm think in about a year or less things will start to look up. And during that time there will be more foreclosures and perhaps better deals.

Researching whether it would be worth renting out my home (LTV 16%) vs selling it. If I refi, I can take that money for my next place that I would live in as long as current home is positive cash flow. But my question is how much can I really expect to increase rent each year for tenants? Some are saying around 3% but that seems high.