With interest rates still at or near historical lows, many consumers have taken advantage of the low rate environment and refinanced their homes. In addition to lowering the monthly house payment, there are other possible added advantages of refinancing, too, such as pulling cash out to pay off higher-interest loans.
But, while refinancing your residence can provide a number of nice benefits, can the same be said about refinancing your rental property?
Yes.
In fact, many experts agree that investment real estate owners can attain more benefit from their property(ies) by not leaving the equity untapped. For instance, while leaving your equity alone can certainly lead to paying off the property more quickly, doing a cash-out refinance may actually offer a much better benefit.
As an example, if you are able to pull out a significant amount of cash via a refinance of an investment property, it could provide you with the funds you need to purchase another and / or to improve the property(ies) that you currently own.
This, in turn, can allow you to increase your incoming cash flow opportunities by adding another income generating property, or raising the rent on your current investments based on the improvements.
While most rental property owners have a goal of building equity and receiving a regular passive income stream, the reality is that managing and maintaining investment real estate can require a great deal of time. With that in mind, working with an experienced property manager can help.
If you own investment property in the Orlando and / or surrounding Central Florida area and you’d like more information on how you can hand over your property-related duties, such as collecting rent and providing maintenance, just contact us for details on how you can reduce the time you spend while still generating income from your investment(s).
