VA Cash out Refi - does it make sense?

I currently owe 157K on a house that appraises for 230. I was thinking of doing a small refi to pay off 25K in debt I have and started thinking if I should just pull out as much as possible and begin looking for my first rental.

All said, what should I expect to walk away with assuming I try to pull out every dime? Does it make sense to try it? My salary has really outgrown the mortgage so even if it doubled I would be ok (I know it will only go up a few hundred)

Does this look like a good starting point to begin REI?

Hi,

 Thanks for serving our country! Now since we live in a small world and we want to get to know you better what state, city / town and county do you live in?

It looks like after paying your debt off you would net $48k from a full $230k cash out loan. Right now interest rates are really low so your likely to get this refinance at 3 5/8 or 3 3/4 so good rates.

You could probable purchase a $200k property with 20% down and closing cost’s which could be one or more single family homes or a duplex / triplex property. Tenants pay the rent which pays your mortgage, rather than become completely cash poor look at buying something for $100k to $150k and keep a $10k to $12k prudent reserve of cash to the side just in case of investment property surprises that may come up.

Also be prudent about trying to avoid any future debt as you won’t be able to refinance your own home for some years.

Good luck,

                GR

Maybe you could consider a Home Equity Line of Credit as well, its much more flexible and rates are nice too. That way you will only be paying interest when you need the money and it will always be at your disposal. Once you complete the cash out refinance you get a check, a new mortgage an payments begin right away whether you use it or not. Sometime it can take awhile to find a property. Thank you for your service, I am a vet also, did you know you can actually carry 2 VA loans? I was surprised to find this out. Also are you familiar with self directed IRA’s? That may be an option for you as well but you can not self manage property if you use them.

Hi,

Jimi is right you can have two VA loans, the problem is you can leave and hold as a rental an old VA loan if it has seasoned sufficiently to justify a new owner occupied VA loan, but you have to move into your new property. A line of credit is great but you can't get 100% financing like a VA refinance and your interest rate will be significantly higher. 


         GR