I have been trying to find a lender that would let me cash out my duplex rental property at a decent rate since the beginning of the year, when I was notified that my tax appraised value jumped from 276k to 442k. Well I finally found one that will let me cash out up to 70% LTV at 3.875% interest, which would give me about $80,000 in cash to play with.
My original plan was to use it as a downpayment on another rental property. My issue with that right now is that finding and placing tenants sounds super tricky right now. Inventory for rental properties is tricky too, it’s not always easy to find a cash flowing deal in the areas where I want to invest.
Putting it into the market also seems like not a great plan, since I think the fundamentals of the market are terrible right now and I just don’t understand why it’s going up.
I’m worried that I’m going to have a tough time cashing out in the future at a decent rate, and the equity will be stuck in the property until I sell it. I realize though, that it’s basically the same as borrowing 80 grand, so I need to invest it in something producing over the interest rate to make it worth doing.
So what would you guys do?