VANGUARDROI
Confused about dryer sheets
- Joined
- Apr 23, 2006
- Messages
- 7
All,
What do you think about the following opportunity?
Bought a house in a costal area in 2004 and put down 28% (instead of the 20% required to avoid PMI) on a 30 yr fixed mortgage @ 5.625 APR.
Converted the house to a rental property last year and covering the expenses with the rent. May sell the house within the next 10-15 years.
By refinancing could unlock approximately $50-$60K (appreciation + 8% extra put down during initial purchase). Estimate cost to refi is between 6.5% - 8% APR + closing costs.
Plan would be to invest these $s in a bradly diversified portfolio of index funds to diversify risk + increase deductions for rental property thus reducing taxes. Currently in 25% tax bracket and have a very solid portfolio of index funds.
Thanks in advance for your advice.
VANGUARDROI
What do you think about the following opportunity?
Bought a house in a costal area in 2004 and put down 28% (instead of the 20% required to avoid PMI) on a 30 yr fixed mortgage @ 5.625 APR.
Converted the house to a rental property last year and covering the expenses with the rent. May sell the house within the next 10-15 years.
By refinancing could unlock approximately $50-$60K (appreciation + 8% extra put down during initial purchase). Estimate cost to refi is between 6.5% - 8% APR + closing costs.
Plan would be to invest these $s in a bradly diversified portfolio of index funds to diversify risk + increase deductions for rental property thus reducing taxes. Currently in 25% tax bracket and have a very solid portfolio of index funds.
Thanks in advance for your advice.
VANGUARDROI