Strategy & TimingQuestion 74
Should I Do a Cash-Out Refinance Before or After Renovations?
After — the renovation increases appraised value, giving you a higher loan amount and more cash-out proceeds. This is the core of the BRRRR strategy.
After — the renovation increases appraised value, giving you a higher loan amount and more cash-out proceeds. This is the core of the BRRRR strategy.
- What to know: Make cash-out refinancing a proactive strategy rather than a last resort in your Houston investment plan.
- Houston context: Houston's steady appreciation in growth corridors means waiting 2–3 years between purchases often builds enough equity for a productive cash-out.
- Action step: Time your cash-out to coincide with a specific opportunity — a deal you want to fund, a renovation that will increase value, or a reserve shortfall to address.
Bottom Line
The best cash-out strategy is disciplined and purpose-driven. Don't extract equity just because it's available — have a plan that generates positive returns.