All Forum Posts by: Richard Aaron

I would calmly explain that I understand that things happen sometimes. Circumstances change. I would explain that he was screened and selected to rent this property, but if he wanted to move out I certainly couldn't stop him. However I would let him know that I would try to find another tenant just as qualified as he is and that I would need to deduct the expenses and lost rent from the deposit. I have actually done this several times in the past and it has worked great for me. Never had anyone kick against it.

Hello everyone. I own my home almost free and clear. It's worth $260,000. I'm shopping for a cash out refi for 30 years at 4.5%. (I'm hoping to get a better rate). The loan would be an 80% LTV for $208,000. Closing costs would be rolled into the loan. Payment would be $1054 mo. (PI). If I took the money and paid off the loans I currently have on some of my other investment properties, and purchase a quality rental for $150,000 with $50,000 down, my net cash flow would increase about $2000 a month. I would move out of my house and my wife and I would travel even more than we do now. My house would rent for enough to cover PITI. I realize my house would be an expensive rental but that's my conundrum.

 Or I could sell my house. I would pay no capital gains taxes and I'd unlock that extra 20% equity and I would simply buy another $150,000 rental with the additional funds.

 So what do you experienced investors think?   Should I refi my house or just sell it?

A little bit about me. I own most of my stuff free and clear. I consider myself to be a somewhat conservative  investor and I've been investing for 25 years. Presently I have very good net cash flow from my investments and my wife and I have been  financially "Free"  since 2012. 

 Thank you for your input. Before discovering Bigger Pockets about 2 years ago I thought I was doing pretty OK. But compared to some of you guys, I feel like I'm in 2nd grade! I'm so glad I discovered this community of Professionals.