Jul 17 • General discussion
Is Your Equity Worth The 8% Rate?
When you refinance a rental, your interest rate can go up — and many investors are totally fine with that.
Here’s why: They’re pulling out tens of thousands of dollars in equity to buy more real estate.
Here's my breakdown 👇
Most investors aren’t trying to build wealth one rental at a time over 10+ years.
They want to scale now — and waiting on rental cash flow to save up for a down payment?
That could take forever.
Even with a solid W-2 income, it can take months to stack enough for another purchase.
That’s why many investors leverage the equity they’ve built and do a cash-out refinance — even at 7% or higher.
Why?
Because turning $50K of locked-up equity into another income-producing property is worth the trade-off.
They’re doing this in two main ways:
- Refinancing long-held rentals with built-up equity
- Forcing equity by renovating undervalued properties (more on this soon)
At the end of the day, the slightly higher rate is the cost of unlocking capital to scale faster.
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Is Your Equity Worth The 8% Rate?
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