All Forum Posts by: Tyler Kursh

Thank you all for the advice, I will look more into doing a HELOC and will do an analysis first to make sure it's worthwhile.

I was wondering this as well.

Hello I hope this is the right place to post this question, I will try to provide as much detail as possible. 

In March 2016 I bought my first home in a suburb of Cleveland, it was a forclosure that I bought for $63,000 and I currently owe around $58,000 on the mortgage.  We fixed up the house and I estimate that it's worth about $120,000 now based on the improvements we made and recent comps from nearby sales.  I'm not interesting in selling/moving from the house for at least a few years but I am looking into purchasing an investment property to either flip or rent. I have found several nearby houses that seem like promising investments. The issue is that I don't have enough cash on hand to make any moves.

Assuming that my estimate of the homes current value is accurate, am I correct in my understanding that I could cash out refinance my mortgage and free up $38,000 (80% of $120,000 = $96,000 - $58,000 = $38,000). Am i doing this right? If so is this a decent option to free up some cash for investment or would the fees/closing costs be too much to make it worthwhile?  Any other feedback/advice appreciated.

Thanks,

-T