Always plan multiple exit strategies. I personally like having more than one possible exit, with our usual course of action being to BRRRR (buy, renovate, rent, refinance and repeat) our properties. This method reuses the SAME money over and over again. We planned on refinancing two properties offering us and our investors about $500,000 to reinvest.
Overall, reinvesting the money would typically outweigh any negatives. One appraisal was slightly lower than expected, yet the other appraisal was drastically lower than expected. With the appraised numbers, it only made sense to refinance one of the buildings. Fortunately, our properties cash flow and we were not in a position needing to refinance.
1. Federal Reserve Bank of St. Louis. “Federal Funds Effective Rate.”https://fred.stlouisfed.org/series/FEDFUNDS”
2. On the Market Podcast. “June 2022 Housing Market Data”. https://public.tableau.com/app/profile/david.nathaniel. meyer/viz/June2022HousingMarketData/ActiveListings
