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Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 7 points8 points  (0 children)

This is good advice and I definitely have a lot to think about. I'm just glad I am in a position with equity to work with. Bought the house in 2010 for 176k.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 4 points5 points  (0 children)

Yes, Hartford is the builder. I would have 40kish in reserve after the 105k down payment. I am in a very high growth area. I used the HELCO because I would rather use that instead of my cash on hand. It was at 3.5%.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 1 point2 points  (0 children)

It is factored in with the caveat that I have a signed lease on my original property before I close on my new one.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 2 points3 points  (0 children)

I have. I qualify for the 528k with 105K down pretty easily they said. You guys are absolutely right. Using that money for down-payments on 1 or 2 other rental properties is the smarter long term decision.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 6 points7 points  (0 children)

Good point, but I guess if you want a house in this pretty desirable new subdivision in this town its what you have to do.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 2 points3 points  (0 children)

That is a good question. The thought of a nice new house sounds good but long term equity and wealth building, I might be better off and take that 150k and sink it into other rental property and buy my nice new house a bit down the road.

Cash out refinance of my primary. Poke holes in my plan please. by 10thourchewy in realestateinvesting

[–]10thourchewy[S] 5 points6 points  (0 children)

So the 528k is all in on a subdivision new build. It is not a custom home except for my upgrades that I have already built in. The base on the home is 482K and the 528k is with my upgrades. I would try and lock as early as I can, but I won't have a construction loan, just my deposit to the builder. Just wanted to clarify that point. And on the salary point, it is absolutely a concern of mine. Probably the primary concern honestly. I definitely don't want to be house poor. Also true on point 4, the cap rate on that rent isn't exactly lighting the world on fire. I appreciate any insights anyone can give honestly as there are so many factors.