This is because the purpose of insurance is to restore the property to its pre-damaged condition.

-We have debt pay down, as our tenants progress through the mortgage-We have tax benefits that enable us to trade up or simply claim deductions.What refinancing does for YOU is allows you to catch those profit centers.  

Using equity can be a powerful tool for building wealth, but it’s essential to ensure that you’re comfortable with the level of debt you’re taking on.Consult a Professional: It might be helpful to speak with a financial advisor or mortgage broker who can help you weigh your options and determine the best course of action for your specific situation.Best of luck with your move and the rental property!

Debt adds risk AND reward. 

Alternatively, you can try and figure out your DTI (debt-to-income ratio), that should give you a general idea as well.

For example DSCR (Debt Service Coverage Ratio) loans look at tax returns to see how a property performs in terms of income and expenses to see what loan amount is justified. 2.

We are $35 TRILLION in debt and we want to throw another $45 BIllion after it ?

Long-term investments are more insulated from market fluctuations and provide more benefits over time, like debt paydown and appreciation  

To tackle this situation and get your debt-to-income (DTI) ratio in line before closing, we need to break it down:1.

Eliminate debt, establish a budget, and save.