All Forum Posts by: Sean Tharp

Hello,

I am trying to get out of my current primary home and use it as a rental. The area I live in is a great rental area. I can longterm or medium term it. I know it will cashflow well as my rate is very low. I want to hang on to this home for these reasons - it is a great cash-flowing rental opportunity. That being said, I need the equity in the home to get myself into a new primary (growing family).

I spoke with a mortgage broker and he recommended that I try to hold onto my rate by using a heloc instead of a cash out refi to put a down payment on my new primary. Numbers wise, it seems to make sense and my rent would cover the morgage and the heloc payments, but I am still struggling with the mental side of things. Is this stupid? Would I be over-leveraging my new primary? Seems like a risky play.

I keep thinking that it might be safer to sacrifice the rate by doing a cashout refi and then use that cash for my new downpayment. 

Any thoughts would be appreciated. Don't hold back!

Thank you.

Thank you everyone for your feedback! Really appreciate that for my first post here. I will definitely dig into the numbers more. I probably won't be moving for at least 2 years so numbers should look appropriate for turning it into a rental by then. Thank you!

Hello,

My name is Sean and I am looking for some opinions. I am set on becoming a real estate investor, but I don't have much capital. What I do have is some equity in my primary residence. If I am planning on moving within the next couple years, would it be a decent strategy to refinance my primary, rent it out (would cash flow), and purchase a new primary?

I would use some of the refinance funds for a down payment on the new primary and then put the rest away for an emergency fund for the rental. Is this wise? How would I scale up from there?

Thank you,

Sean Tharp