San Antonio, TX · Member since 2018 · 6 posts · 0 votes
Hi BP,
I just rented my property and I'm not getting a lot of return back because I pay $ 911 for the mortgage and I have the property rented for $ 1100. I also pay a property manager %10 of the rent. Is it better for my situation to refinance the property to have more cash flow or do I keep it as I am doing now? I new on all this of investment in RE.
@Jason Hernandez Is the shorter amortization period causing the higher mortgage payment? If yes you can refinance and get 30 year fix but you will pay less towards principal and more towards interest.
I owned this property since July 2014 so probably that’s the reason that I am paying higher. Also the property taxes in El Paso increased by almost $400 and that’s another reason that I’m paying too much. So it’s better for me to refinance to lower the mortgage payment and get more cash flow?
Based on the difference between rent and mortgage payment ( I am assuming it includes taxes and insurance), there is very little cash flow for maintenance, vacancy, and all other expenses while renting (50% rule), I will sale now that El Paso is a seller's market for properties under $120k.