Skip to main content

Cash out refi or keep equity in property?

So my parents recently a paid off a mortgage completely on an investment property (~$800k)

The idea now is to do a cash out refinance so they can use that money for other investments (index funds or more property). They don’t have a retirement or savings — which worries me... and if the housing market crashes, the market value of the property will most likely go down. Which is why I suggested for a cash out refinance.

With the new mortgage, they have been approved to be able to tap up to $500/600k of the equity for ~3%, closing costs probably about 1%

I guess the question is how much would be ideal to take out in equity to put into another venture (like index funds), would it make sense to even do a cash out refi or completely keep the equity in the property and have it cash flow (then use that for investments... but that would also mean not having the funds immediately available)

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

source https://www.reddit.com/r/RealEstate/comments/iikmc3/cash_out_refi_or_keep_equity_in_property/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Looking for Prospective Opportunities to Utilize Floor Plan Redraw Skills

"Hey HomeOwners & Investors , I have a team of 10 professionals who are trained in redrawing/redesign floor plans in both 2D and 3D interior& exterior using floorplanner.com/3ds Max and TruView point cloud. We're looking for prospective opportunities to utilize our skills. Are there any companies or individuals in need of accurate floor plans and measurement reports ? Any suggestions for where to start looking? Thanks in advance for your help!" submitted by /u/mangojuicelife [link] [comments] source https://www.reddit.com/r/RealEstate/comments/119uoh0/looking_for_prospective_opportunities_to_utilize/
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more