Updated almost 6 years ago on . Most recent reply
Use capital to increase Cash flow vs wait for another opportunity
Hello everyone,
We are still pretty new to REI, but we have bought a buy&hold property 2 years ago with 5% down which is currently generating:
8.60% Cash on cash ROI and $93.77 Cash flow see https://www.biggerpockets.com/...
We have an extra 40k available right now and been looking for some good deals but have not found any yet.
(Option A) So we were wondering if we should perhaps invest 23k back into that rental and increase the cash flow. If we do, we will have :
12.86% Cash on cash ROI and $248.97 Cash flow https://www.biggerpockets.com/...
(Option B) Now that I am typing this question, it occured to me that we could spend $500 on an appraisal to try to remove the PMI which is around 55$ each month and our cash flow will increase to about $143 per month.
Which option should we pick? Is there a better strategy? Thank you for taking your time to reply.