All Forum Posts by: Jonathan Newcomb

Thank you everyone for all the advice, as this is our first investment it has been one hell of an experience. When we bought the house, it was homestead exempt, but it will not qualify for the tax breaks starting the 2017 year, so I assume the tax rate on the property will go up for the 2017 tax year and increase ~3% every year. Just to give some background, I am 34, we plan on holding this house for 20+ years, the numbers seemed to have worked when we were looking to purchase. I agree that there is not enough equity in the house to do a cash out, but a lot of the literature and research I had done indicated that was the best course I just couldn't make the numbers work and didn't want to blindly follow a system that may not apply to my specific situation. 

Greetings BiggerPockets Community! My wife and I just started a venture in North Texas, we were able to cash out some stocks late last year and put a down payment on a SFH in a north dallas suburb. We spent $45k down on a property at $162k, did a traditional loan at 4.65%. Our monthly payments are $907, but we are waiting for the homestead to fall off, so I am not sure what the true mortgage will be. We have a tenant currently under a 1 year lease paying $1400 / month. We have another set of stock options transitioning from RSU at the end of the year that will total about $35k. I have heard a lot about the strategy of doing a cash out refinance and using that to fund the next venture, but I am worried about getting under on the house. Should I take the RSU vestment and put that totally towards the down payment on another SFH, should I use that to reduce the principal on the rental or should I refinance the house (estimated value at $171k) and use the cash to finance another venture.