All Forum Posts by: Leanna Nixon

Thanks @Jonathan R McLaughlin. Cash flow will be low...$100 total...after taking taxes, insurance, vacancy & management fees into consideration. Shouldn't be any major CapEx as I've owned the properties for a while and know there is nothing major needing attention. I think I might feel more comfortable at keeping 30% equity in vs. 20% to get the CF a bit higher but I've also been fairly conservative by never having debt on them so do want to take advantage of the capital I can get out now to scale. Hard decisions to make.

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Quote from @Jay S.:

@Leanna Nixon If you don't not any plans with the cash after refinance, then you probably shouldn't do it IMO. But if you know what to do with the funds after refinance, then you can go as high as 80% LTV for cash out refinance. In other words, if you own the property free and clear for $100K, you can take out up to $80K before closing costs. Hope this helps.

DM me if you need any help in checking how much you can cash-out/their rates etc.

Thanks. I do have plans to purchase 2-3 more properties with the capital. I’m just a little nervous about financing right now given properties are likely maxed out on val. Keeping 20% equity with basically BE CF does seem OK so long as no major unexpected capes comes up!

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Quote from @Jonathan Riordan:

Quote from @Leanna Nixon:

Hi! I am planning on doing cash out refis on 2 properties I own in Cleveland. Both were purchased around 5 years ago for cash & have both cash flowed & appreciated more I had anticipated. My estimated cash flow after refi’ing is going to be on the lower side & im wondering if I should follow through as I don’t want to end up in a negative cash flow situation. But since I’ve already done so well with cash flow & appreciation is this as much of a risk now? We also have enough income to cover in case they don’t cash flow. Curious about cash out refi-ing and when it makes sense & when it doesn’t. Thanks!

Awesome! It sounds like you're in a great situation. I think it all comes down to what you are wanting to accomplish. If you are happy with the current cash flow you're receiving through these two properties and just want a steady flow of income every month that you can count on, I would keep doing what you're doing. If you would like to scale and continue growing your portfolio, it sounds like you are in a great position to do just that. Taking a hit on cash flow with these two properties would be worth it if you find the right deals to buy with the cash-out refinance. If you do it right, you can possibly turn that cash-out refinance into a better appreciating property with better cash flow than you currently have.

Thanks @Jonathan Riordan yes my hope is that I can use the capital to buy 2 more properties that will appreciate & cash flow. It sounds like I’ll need to be patient based on where the market is.

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Quote from @Jonathan Riordan:

Quote from @Leanna Nixon:

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Quote from @Edward Stephens:

@Leanna Nixon you can tell your lender how much cash you want to take out when you cash-out refi. If you’re worried about your cashflow becoming negative, you might want to take out less cash. If you have additional questions, feel free to DM me on this.

Thank you @Edward Stephens that is what I’m trying to figure out. If I take full 80% amount out on both properties I’ll have close to $200k to use to scale my portfolio to buy other properties. My cash flow (after taking into account insurance, taxes, vacancies, management fee) would only be $100 or so total. It would be less risky to take out 60% but I wouldn’t have as much capital.

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All Forum Posts by: Leanna Nixon

Leanna Nixon has started 5 posts and replied 16 times.

Post: Refinancing & Cash Flow

Post: Refinancing & Cash Flow

Post: Refinancing & Cash Flow

Post: Refinancing & Cash Flow

Post: Refinancing & Cash Flow

Post: Refinancing & Cash Flow