All Forum Posts by: Jeff Smith

Quote from @Kevin Sobilo:

@Jeff Smith, if you cash-out refinance you will probably no longer cash-flow positively on this property. That is not something I would want personally. I want each property to stand on its own as a good investment.

What I would be thinking about is SELLING and doing a 1031 exchange. You could sell this one property and buy 2 replacement properties! By using a 1031 exchange the proceeds get rolled into the new purchase without you having to pay any income tax on the sale at this time.

This accomplishes your goal of growing your portfolio. You will then have MORE cash-flow to save towards another purchase or BRRRR deal.

 This is an interesting idea. I’m aware of 1031 exchanges, but didn’t consider it here since this property cash flows so well. 

@Scott Johnson - I was thinking about a cash out refinance.

My wife and I purchased a rental property in 2018 for $153k. It currently rents for $1800/month and we enjoy the positive cash flow as well as the market appreciation (~$245k).

We want to purchase our second property and are interested in perspectives on financing, including HELOC on our primary residence vs. cash out refi on the investment property. Ultimately, we would like to try BRRRR, but are wondering if we can skip the hard money portion of the process by cashing out on our investment property since it has appreciated so much.

We welcome any advice!! Thanks!

@Ben Zimbleman I'd love to hear about your first rental experience with that SFH sometime.

Thanks! I’m glad that we are already connecting with others in the area.

Hey everyone! My name is Jeff and I’m an engineer / IT manager from the Philly area. I’ve been living in the area for 12 years and have been a homeowner for the last 5. I’ve always believed there is a great rental scene here and am looking to purchase my first rental property. Looking forward to connecting with you!

Congratulations! Seeing success like this is inspirational.