All Forum Posts by: Aaron Rocha

@Jamaal Gibbs thanks for the reply, I would most likely be applying that extra $700 to stockpile cash in hand used on another investment property. Still not a good idea? I’m really lost and unfortunately I have until midnight to cancel my closing.

@Joe Villeneuve thank you for the info. How much money would you pull out in a refinance? I was going to cash out $166k. Thanks!

I own a rental property in Denver that is producing 12-13% Cap rate. I owe $165k on the property and I am in the process of refinancing my primary home to pay off the rental property. My initial reason for doing this is that I will save over $700 in interest per month. Sounds like a no brainer, but am I missing something?

My primary home value is $700k. I currently owe $335k and my new loan paying off my rental will be $500k. Payments go up on my primary $450 a month, but I’m still saving over $700 a month overall.

1)Refinance and pay off my rental?

2)Refinance cash out and buy another investment property?

3) Refinance pay off my rental, snowball my primary, and use some cash reserves to buy another investment property?

I really appreciate your thoughts and perspectives and thank you in advance.

Thanks Bill S. I appreciate the input and agree that if money is the main object than I should choose option B. I feel like it's my one and only chance to purchase a multi family investment for such a small amount down. I'm just afraid that this great opportunity I have on a particular single family is too good to pass up. Walker Hinshaw

**Update 4/30/15** I refi'd $70k out and put $55,000 down in another market on a 6 plex with a great ROI. I still want to live here in Colorado. I can go 3.5% down on my next property. I have considered moving into a multi family up to 4 plex and renting out the other units. Or purchasing a very nice home with great equity for me and my wife. With $15k left over I could make a down payment on a property valued around $428k give or take. Here's the next multiple question; What would you do with the other $15k from the Refi? A) Purchase a single family home you found below market value with great sweat equity in a hot area you have always wanted to live in? B) Purchase a multi family while you have the option of coming in at 3.5% down via FHA owner occupy? C) Other, please explain Thanks again for any and all help!

Bill S. I am not too familiar with the Heloc's work for investing into other properties. I will have to research that.

Thanks everyone! It seems like the consensus is to use the money for additional properties while keeping the cash flow at a max. I do like the option of taking $40k out and keeping the payments the same. CM Williams- I refinanced to a lower rate, extended back out to a 30 year loan and got rid of mortgage insurance. Is it smarter to use all of the cash out on 1 property to bring the monthly payments down or or spread the money across multiple properties? Thanks again everyone

Thanks for the input Mike! I will have to research a commercial portfolio loan. I never thought about it that way which is why I'm here! Basically I would get all my $70k back and have another property generating cash flow. Nice! What would be your backup plan?

I am 31 years old, about to refi, and ready to buy my 2nd property. Hopefully a multi family unit. My single family house in Denver is worth approximately $250k. I paid $125k. I owe $100k on a 4.65% 30yr fixed. My current mortgage is $900 total. Current rental rates for my area are $1,800-$2,200 month. I am 98% ready to close on a conventional refi and I'm having second thoughts on how much or if I should cash out. The contract is written up at $70k cash out 4.19% 30yr fixed. New mortgage $1,190 total. After I refi, ultimately I would like to purchase as many properties as they will allow me to, as quickly as they can. My Lender says I would be able to get one FHA loan (up to 4 units) with 3% down. After that 1st FHA, I imagine the next conventional loan would be a higher % down. Should I: A) Cash out $70k, and use it to put more $ down on my next purchase? B) Cash out $70k, save it, and take advantage of the low 3% down? C) Cash out $40k and keep my payments the exact same? $900 monthly D) Don't cash out, refi to lower monthly payment, and cash flow an extra $200 per month? (Pay mortgage faster?) E) Other (explain) Any and all help is greatly appreciated. I may be missing more info but this should give you a brief view of my situation. Thanks in advance!

Dimitriy, What about a New York Life program? Is that worth putting $200 a month into for the long run? Thanks!