1st Property Problems
Good Afternoon,
I would love to get some input on my situation. We bought our first unit ( 3 BR x 2.5 BA) in February 2022 its currently rented out through March but is not cash flowing due to a few incorrect estimates on my part.
Some of these items are minor and will work out with time but the biggest blow to profitability is the HELOC we took against our primary residence to come up with the payment for the rental. I imagine everyone is dealing with rising rates so this is probably white noise but the rate on the HELOC went from 4.25% to 8.00% in approximately 6 months. I never intended to take the HELOC to term so the increase just adds a little more urgency to what I was already planning to do. I currently owe ~$72k so my thought now is to borrow from my 401K, max allowed is ~$50k pay myself back at ~5% or so, and come up with the remainder through aggressive saving and tax returns. Am I overlooking anything in this scenario or are there other viable options I should consider? Thanks