Having a rental property in Florida is an excellent way to diversify your investment portfolio. However, you can optimize your investment when you find creative ways to maximize its value.
Refinancing your commercial property is one strategy you can consider to potentially improve your profits.
Lower your interest rate
Interest rates can make or break your experience as a real estate investor. According to U.S. News, one of the more common reasons to refinance is to secure a lower interest rate. Changes to the economy may directly influence the interest rates for certain rental properties. If rates drop substantially, refinancing allows you to develop a new repayment plan with a lower rate than the one you formerly had.
If you have experienced issues with your credit score in the past, you may have lacked eligibility to secure a lower interest rate. If your score has improved with time, you may consider refinancing because your higher credit score may mean a lower interest rate than before.
Consolidate mortgage debt
Mortgage debt is certainly not a bad thing, but paying it off quickly can free up your cash flow so you can consider other investments. Refinancing may not only shorten the time it takes you to repay a loan, but also allow you to consolidate multiple properties into one loan if you desire. Additionally, if you have available assets, you may consider refinancing so you can take some of the equity out of your property to utilize for other purposes.
Comparing your options can help you decide if refinancing is right for you. Working with an attorney may also enlighten you as to what you can do to improve the value of your investment portfolio.