Good question. If you use cash-out refi from house A and use it as down pwyment (let's say, $100,000, as an example) to buy house B with a mortgage, then you do not have money out of your own pocket in house B. Theoretically, it could mean infinite in your rate of return. However, practically, I would still use rate of return = (cash flow + principal reduction + appreciation)/$100,000 to estimate whether it is worth buying house B or not. This is especially true when you are faced with a choice of buying B, or C, or D. This would tell you which house provides the best return.
Good question. Here is my answer:
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• 明白了。找到相同的投資基數才能和市場其他房產做比。謝謝解惑! -thankful- ♀ (0 bytes) () 01/27/2021 postreply 11:21:17