Welcome to another episode of Passive Real Estate Investing. I'm your host Marco Santarelli. This is a quick Ask Marco episode. I've been getting a number of questions related to cash-out refinancing, and some of these are strategy-related questions. So I've put two or three of them together here that I will attempt to answer and cover as best as I can.

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So before I do that, I'm sure everybody has been watching the real estate news and seeing what has been going on around the country in terms of price appreciation, tight markets, multiple offers situations, and just how incredibly on fire real estate has been in the US and I'm talking in general terms here, obviously it's market by market and very much market specific, but we are just seeing an incredible here this year. We will probably close out again. This is on average the year with over a 16% average annual nationwide home price appreciation.

This is more focused on new construction than existing sales, but the existing home market has also been just as strong if not stronger. And I'll have more information on that in coming episodes. I don't have that data in front of me, but I don't think the next two years, 2022 and 23 are going to be as strong in terms of price appreciation. And when I say strong, I mean, as crazy as what we're seeing here, but everything is incredibly strong. Existing home sales have been strong, existing home values this year, just from one of the indices I follow has just broken 20% year over year, which is unbelievable. The month of supply out there, meaning the amount of inventory in the resale market is a whopping low 2.6 months worth, which means that if there was no new inventory, the existing demand for that would basically take all the inventory off the market in two and a half months.

So again, we're living in crazy times and interesting times, but I will have a little bit more to say about the US housing market health and the pulse of it, as well as some single-family rental stats in an upcoming episode today, I want to just focus on some of the questions that I've been getting in terms of cash-out refinance. And so I'll cover two, maybe three of them here they're related, and there is some overlap, but the scenarios are different. So I thought it would be interesting to just talk about that. So the first question comes from Casey and Casey writes in and says, hello, thanks so much for all the great content and resources I've been listening for about a year now. And I, your show, I'm learning so much. I worked with Melissa and recently closed on my first investment property.

Well, congratulations. And I'm glad to hear that you are building your portfolio. It was a great experience and I'm excited to continue growing my portfolio with Norada. My question is how do you decide when it's time to do a cash-out refinance on a property? What factors should I consider other than making sure I can cover my expenses? And third, do I wait until I can pull out my original investment? In my specific situation, I purchased a Memphis property for 120,000. I financed 90,000 and it appreciates, or it appraises for 145,000. It was already occupied and currently rents for $960 a month. But the market rate per the property manager is closer to 1,035. I don't necessarily need a high cash flow, but I would like it to pay for itself. I also have a reserve of four months rent set aside. My short-term goal is to acquire two to four more properties in a hundred to $125,