All Forum Posts by: Patrick Staker

I do currently have a good rate, but it is an ARM 5/5, so every 5 years it will go up 2%. Right now it is at 2.5% and in 3 years it will go to 4.5%. I guess then it would make more sense to keep it as is and possibly sell it/refinance it in the 8 years down the line if I decide to keep it that long?

Almost exactly 2 years ago we bought our house, which turned out to be a pretty sweet deal but at the time we got it because it was all we could afford. 

After doing a small amount of work to it we've raised the equity at least $40K.  We bought it for 117K (it needed some work but was liveable).  We redid the kitchen, flooring, finished out the basement, worked on the landscaping...etc.  Our direct neighbors house just sold for $182K and it's a similar size. 

I'm just starting to research getting into Real Estate and I was wondering if it would be worth looking into a cash out refinance to get started in purchasing a new piece of property for renting out.  We could either keep living there or save up enough along with the cash out refinance to find a new primary residence and rent out the current house.  Looking around the area we could get $1500 in rent per month. 

Any opinions?  

We bought our house almost 2 years ago for $115,000 and have about $100,000 left on the mortgage. It's on a 5/5 ARM currently at 2.5%. I'd estimate our house is worth $160,000 currently with the work we've put into it ("zestimate" unseen is $158,000) and our direct neighbors house just sold 2 months ago for $182,000.

I've just recently started to get really interested in Real Estate, right now the focus being generating income from rentals.  I also just recently learned about a cash out refinance.

I'm wondering if it would be worth it to look into a cash out refi on our current home and using that towards a new primary residence?  I believe from similar rentals in our area that our house would rent for ~$1500.  

I'm not sure if there's a better option, such as just saving up towards a new primary residence and selling my current home, using the amount we make off the sale to buy up a couple cheaper properties.  Or something in-between.