Sitting on Your Next Rental?
What if the key to growing your property portfolio was sitting right under you? Literally.
I'm talking about a financial strategy that could allow you to make your next move:
If you don't know what it is, it’s basically a new mortgage on your property for an amount that is higher than what you currently owe. So it allows you to pull equity out of the property.
And the best part about a cash-out refinance is that the process is similar to how you got your first mortgage.
So, as long as you have a similar credit score and DTI, you should be able to get approved easily.
However, it’s also important to look at the downsides of this strategy because it might not align with your goals.
One of the biggest ones is that your mortgage payments will be higher.
That difference in amount should be considered when analyzing new deals because the cost of borrowing money will impact the cash flow you receive from a new property.
Plus, the length of the loan will now be longer.
Now, I know this might be a bit confusing...
So if you want to learn more about how cash-out refinance works and how to use it…
I uploaded a YouTube video not too long ago that breaks down everything you should know.
And, of course, if you have any questions, please reply and let me know!