Refinancing for Investing
Real estate investing can be considered a suitable and trusted investment decision due to the continuous appreciation of the housing market over time.
With a cash-out refinance, you have the ability to apply the equity in your current home toward the down payment or complete purchase of an investment property. The purchase of additional real estate provides additional tax advantages.
Owning a second property gives you the option of renting it out to increase cash flow. When considering this route of investment, personal strategy needs to be carefully reviewed in the planning process. The location and type of property also must be examined for rental compatibility.