All Forum Posts by: Luke Myers

Thanks to both for your comments. For the HELOC - I was told by both a mortgage company, and a local bank, that we'd need to own the property for 1 year before refinancing - but seems that may not be accurate. Perhaps I need to shop that some more.

That's a good point about mixing personal and business. The reason I was drawn to the cash-out refinance at first is because 3 years ago, I chose the 15-year loan but the payments are high enough where we don't have a lot of extra money to invest....so rates are lower now where it seemed refinancing to a 30 year loan would open up more options for aggressive investing.

And since we have an investment in place (the $150,000 deal with 25% ROI) - would it not be prudent to just do the whole deal up front knowing that we've refinanced the original loan to a 30 year, and have used our equity to secure a lower interest rate on the additional $200k loan?

Our main home appraised for $500k, and we owe $100k. 12 more years on a 15-year conventional loan and pay $850 a month. We want to begin to begin the BRRRR process, but want to allow our equity to work for us in the best way possible. Options we've been given are -

1. Cash Out Refinance of $300,000 at 30 years, 3.625%. Pay off the existing $100k mortgage and have $200k for investment properties. Our current per month mortgage is $850, and this would increase to about $1400 per month. We DO have a current investment property that we've got under contract for $150,000 and will have a 25% ROI.

2. Or we could HELOC at 5% the $150k and then figure out how to refinance after 6-months to a year.

With our current equity in main home, what is the best route if we'd like to BRRRR invest? Is there another type of loan we're missing out on with a Portfolio Lender? Any Nashville recommendations?

Thanks! Luke