Any reason not to cashout refi my rental?

[MrRational]

Originally Posted by ericp501

I got it for $95k with only 15% down but had to take a 6.1% rate.

How much more is it worth now and how many more rentals do you want to buy?

[Fedupwiththis]

Originally Posted by MrRational

How much more is it worth now and how many more rentals do you want to buy?

$140k give or take. I don't have a particular number of rentals in mind. I would like to get to the point where the income from the rental properties covered all outgoing expenses. If I averaged just 1 property a year I'd reach that goal in my early 40s.

I also have a goal of purchasing a beach town vacation rental. We're about 45-50mins outside of Long Beach Island, NJ. Just over the bridge is a town where every single house has a dock behind it and connects to the bay. You can get houses there for 1/2 the cost of what they are just over the bridge in LBI. They rent very well through the summer months and you can find off season renters as well. A friend has had a small house in that area for years and does well with it, also loves the ability to reserve it for themselves for long weekends and getaways.

I think I'll look into other options like HELOC or something. Either way I'm def refinancing, its just a mater of do I pull out the $ or not without having something lined up.

[aslowdodge]

Originally Posted by ericp501

I found a unicorn, friend of the family was moving so I made an off market offer. She jumped on it for the convenience and rented back a few months before moving and I was able to get an amazing Military family as tenants.

As others have mentioned, I can pull out $25k now, if we are nearing a recession prices may dip and I may only be able to pull out $10k at that point and might miss out on some great deals.

This method is known as BRRRR.. Buy, Rehab, Rent, Refi, Repeat. It's a way to grow your investment property portfolio without having to continue to save your own hard earned money for each property you purchase.

As for the rate, I was working with a lender about 2 weeks ago when rates first really tanked, at that time he projected a rate of 3.825% with $700 in fees. Rates have continued to drop so I'm assuming I'd be in that same range. We have a very low debt to income ratio and both my wife and I have credit scores over 800.

I do like the idea of investing the cash in something more liquid, maybe Gold or something...

That’s a pretty good rate and cost.