Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome to another Now here's your host Marco Santorelli.

Hello, my friends and welcome to another episode of Ask Marco,

where I answer your investing related questions.

Today's question comes from Jade.

Thank you very much, Jade. She says, excellent podcast. I wish that I'd found it sooner. As you mentioned, ignorance is expensive. We paid off most of a rental home, but we'd like to retire soon, which means we need more cash flow.

We're considering refinancing the rental in order to fund the down payment of additional

rental properties in a different state that have a better cash flow. Any thoughts on this? And Jade goes on to say,

we're nearing retirement age so the thought of refinancing with a 30-year mortgage

seems like a long time, but it would give us the best cash flow.

What are your thoughts on this?

Any other things we might want to consider?

So this is a great question but there's not enough information here to really give you a more specific or targeted answer, but I can answer it generally.

And here's what I would say if you have a rental property right now

that is mostly if not entirely free and clear so it means you have a mortgage on

it but it is not paid off. That's fine. But if you've got a lot of equity that you can pull out through a refinance, which is essentially a cash out refinance,

and there's no tax implication on that at the time.

Then what you can do is you can take that equity

and turn it into down payments on additional rental properties.

And if you do the math, more often than not what you will find is that the net income you have from that one rental property or a rental property is typically increased, sometimes considerably by taking the

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