Posted by Travis(In CA) on May 02, 2000 at 20:09:40:
I’m in Sacramento. What I’m worried about is that fact that my wife and I are looking to keep our current house as a rental and buy a bigger home for the family.
But in the process I’d like to pick up some rental properties along the way.
Any info would help,
Travis
Should I refinance my current home before buying REI? - Posted by Travis(In CA)
Posted by Travis(In CA) on May 02, 2000 at 13:18:04:
I have located several houses that I could get for zero down with either a positive or break-even cash flow however I’m still a little nervous.
A realtor friend of my said I should refinance my current home(1st mort. and 2nd mort.at 13%) before I try to buy any additional property.
Does it make a difference??
Here’s my situation
I have pretty good credit and make decent money on my job but I’m worried about making a second house note in the event that the tenant doesn’t pay rent or moves out before I can get someone in.
I really don’t have a lot of extra cash floating around to be making 2 house notes.
Any words of wisdom in this area would really help.
Travis
Re: Should I refinance my current home before buying REI? - Posted by Joe (LA, CA)
Posted by Joe (LA, CA) on May 02, 2000 at 14:01:58:
Travis,
If by refinancing you can reduce your interest cost and improve your monthly cashflow, then why wouldn’t you?
On your second point. No one wants to pay a mortgage on a investment property they are not receiving income on. There are a few tried and true ways to reduce your risk and they are all available on this site for free. The bottom line is that zero-down is a risky business.
I’m curious where you are in CA? Most moderately discounted homes in my area would not cash flow at zero-down with a plain vanilla purchase.
Joe