Refinancing mortgage to make down payment on investment property?
I bought my primary residence 2 1/2 years ago for $ 60,000 and put $ 20,000 into it (it was a “fixer upper”). It now appraises at $ 145,000.
I plan on refinancing my $ 60,000 mortgage to pay for the debt of $ 20,000 (mixture of credit cards with 0% intros that are running out!) and to make a 20% down payment on an investment property (so I can avoid PMI). I plan on getting another slight “fixer upper” and only want to put in 10-15k into it. I will rent it out for a year or so until I think ive reached a good profit and sell it. Plus I only want to have to pay 15% tax rate instead of like 33% (long term investment).
I am not familiar with refinancing. Should I first get a contract on a property so I can refinance just enough to pay the debt, 20% to put down on the house and alittle money to fix it up? OR should I just estimate and refinance now and keep that money in the bank. I would hate to pay interest on money just sitting in the bank. Or do you know another way of doing it?