Skip to main content

Help! Investment Property Refinance - Cashflow or Equity?

Key Facts:

  • Current Mortgage Total Cash Outflow is $1846
    • 30yr @ 5.625%
    • P&I is $1,404.60
    • HOA is $220/mo
    • Taxes $222/mo
  • Rental Income is $1850

In late 2007 my wife and I got married and bought our primary home (perfect timing to buy a place /s!). It's a 4/2 Condo in Miami. Surely enough it went underwater by ~50%, but being the responsible people that we are we held on to it and property values now in 2019 mean that we have a little bit of equity ~70-75 LTV.

We moved out of that property in 2011 and have rented it out ever since, and just recently we became cash flow neutral (enough to cover P&I , Taxes, and HOA).

I'm thinking of refinancing it, but I have doubts about going to a 20 year or a 30 year. Surely, the 30yr is more attractive since it would generate an extra ~$366/mo in cash flow.

Refinance offers

  • 30yr at 4.5% a bit high due to 1)investment condo and 2) Miami this would generate about $366 extra in monthly CF
  • 20yr at 4.25% this would generate an extra $135 extra in monthly CF

What an I missing or should consider further masters of reddit? Thanks!

submitted by /u/Liquid18t
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/e3z6n5/help_investment_property_refinance_cashflow_or/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear
1 comment
Read more

Fast Rising HOA Fees on NYC Condo, No Budget Provided

My wife and I are first time homeowners and could use some advice on a situation we've been having with our management company and Board. We bought a condo in Brooklyn two years ago, and since then our HOA fees have climbed dramatically. In August of last year, our fees were increased by ~30% and just yesterday we received notice that this new figure would be increased by 16% as of June 1st. The by-laws for our building state that ten days before such a change goes into effect, the Board must provide unit owners with the itemized budget upon which the new numbers were based. This didn't happen last year, and when I asked the management company about it, they just kept vaguely insisting the Board had done due diligence. After I kept pressing, they finally sent a budget that was several years old, so obviously not the one that the new numbers were based on. When I asked the management company for contact information for the Board to get further clarification, I was told that th
Post a Comment
Read more

How to create fidelity investments current bank statement for lender during escrow

I transferred a certain amount to my bank account to complete the minimum down payment required. The bank wants a current statement of the transaction. Unfortunately, fidelity only does quarterly statements so a December statement is not available and we are due to close next week. I called fidelity and they they can only provide a letter but the bank said that won’t suffice. Any way I can find or make one of my own that has my account number/name along with all the recent month’s activities? submitted by /u/bodaciousbeans [link] [comments] source https://www.reddit.com/r/RealEstate/comments/zmnnqo/how_to_create_fidelity_investments_current_bank/
Post a Comment
Read more