Hi All, So I am currently looking for my first investment property (BRRRR method) and was hoping to receive some recommendations and/or feedback.
I am thinking of doing a cashout refi on my primary residence to pay-off some debt. I recently consolidated my 44k debt @ 9% - pymnt = $1,000. Current FHA Loan - 149k balance @ 4.250%, 22yrs left and is worth 335k. Current pymnt = $1,917. Reached out to my current lender and these are the numbers. New Conventional Cashout Refi 20yr Fixed: 210k @ 6.50% (6.798% APR) New pymnt = $2,293. As far as closing costs, there is a $300 fee i'd have to pay since it is my current lender. My cs is @ 700.
I guess my question is... should I pay down the debt first? Should I do the cashout refi and pay-off debt or use that cashout money for an investment property then utilize the profit/cash flow from that property to pay down the debt? Should I look into a different type of loan DSCR, HELOC?
Please let me know if I'm missing information/details. Any recommendations or feedback would be greatly appreciated.
Thanks in advanced!
