Hold or Buy?
I’m working with my father on managing his RE.
We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow.
My father is 60 years old.
We have been discussing options on how to move forward. A cash out refinance to buy more property would put a substantial dent in cash flow with current interest rates. Also would come with the stress of a loan, and debt servicing. Not to mention the upkeep of the new property, and its loan stress.
Would the best option be to just hold? $200k is no small sum of money.
To obtain $200k worth of cash flow at current interest rates would require around $7M worth of purchased real estate in the NY metro region if they all had loans at their nascent stage.
What would you do if you were in our position?