Need support with building| No idea what I’m doing.

[Belén Cosenza]

Hi everyone, 

I own a two unit building. I don’t live in it anymore so both units are rented. It more or less breaks even every month. The estimated value according to the internet puts it somewhere around 350k, and I owe 265k on it. I got it on the low 3’s % in 2020. I have 30k in credit card debt, part me and part big masonry repairs made to the building when I got it. Sucks.

Basically I went in hoping to BRRR, but I called a traditional lender and apparently I can't refinance because I still owe too much and the loan can't be more than 245k. So in short, my money is trapped. No BRRR.

Does this mean I made a mistake? I can’t tell WHERE I am standing with all this. Did I do something wrong? Is this part of the process and gotta give it time where time is due? Or should I sell, pay my debt and pretty much break even and start from scratch? It wouldn’t even be from scratch because this time around I wouldn’t be able to get a home owners loan. Now I have a family and we can’t move. 

I feel so lost, what did I do wrong? Why can’t I refinance to grow the way they put it everywhere? 

[Mark Ainley]

@Belén Cosenza what neighborhood is this located?

I know this seems like a bad scenario, but you are learning more this way than with any other approach to learning REI. Don't focus on cash flow. Ask you CPA how much in write offs you are getting against your W2 income? How much principle is being paid down on the loan? You have 25% equity in a market that finding a deal is tough.

You just need to have a plan here...your thoughts in this thread are stressfully written so I am guessing that is the way they are arranged in your head. 

Positive

-75% LTV

-Breaking even

-Cant buy this property anywhere close to what you paid

-Tenant issues addressed

-You figured out what you dont like about a PM or PMs in general

-You have a dirt cheap interest rate

Issues

-No confident plan on how to turn around

-Need to address PM issues