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re: Investment property interest rate?

Posted on 5/16/20 at 4:22 pm to
Posted by Athletix
:pels:
Member since Dec 2012
5070 posts
Posted on 5/16/20 at 4:22 pm to
This is multiple steps out ahead of myself, but good chance I cash out refinance this house when I’m done renovating and have it rented. I still want to secure the best possible loan going in, because plans may change and properties might not pop up in the range I want. I don’t want to refinance unless that money is going directly into another asset. But at the moment I’ve got another house (vacant/abandoned) that is interested in selling. They aren’t very motivated, so I’m hoping they are still around in a few months and still want to sell. I want to snowball this single family rental home thing. With low interest rates I don’t mind the extra leverage on a cash flowing asset. Don’t want to miss out on good properties
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 5/16/20 at 4:38 pm to
quote:

cash flowing asset.
COVID-19 has entered the chat
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
73247 posts
Posted on 5/16/20 at 4:45 pm to
quote:

I want to snowball this single family rental home thing.


absolutely

quote:

With low interest rates I don’t mind the extra leverage on a cash flowing asset. Don’t want to miss out on good properties




right. use smart leverage to expand. You can always years down the road choose to pay some off for more cash flow and less exposure. If you do not like dead equity you can get some HELOC's on them after paid off so you have options should you want to use that for DP's/cash buys/flips, etc on more properties and expanding yet again. So many options in this business.
This post was edited on 5/16/20 at 4:48 pm
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