Looking to further your real estate investing but not sure where to start? Consider pulling cash out of a current rental property. A cash-out refinance is when you replace your mortgage with a new loan for a higher amount. The difference in cash is yours, which gives you an edge on new investments. Here are all the ways we recommend using cash-out refinances to expand your wealth:
Renovate and up the value of the property you pull cash out of-
- For a newly renovated rental property with nice amenities, like new kitchen appliances or a luxurious spa tub in the master bathroom, you can charge more rent.
Renovate and up the value of another property-
- Refinance one property to fund a renovation for another that needs some TLC.
Buy another investment property-
- Pull out cash from one property to cover some of the costs of your next investment, including a down payment.
Finance your next flip-
- A cash-out refinance is a fantastic alternative to borrowing hard money for flippers.
Share your experiences with refinancing properties in the comments section below, or contact us to find out how we can help you grow your rental property portfolio.