(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.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
@Akpedje Akoussah you didn't say HOW you would increase the cash flow of your first property by putting $23k into it. (I am not about to reverse engineer a property analysis to figure out what you want to do!)
In general invest at the best rate you can, given the alternatives you have. I would keep the pile you have intact and try to grow it and eventually put it in another deal.
The best alternative is pay $500 for an appraisal to save $55 a month. That investment pays itself back in 9 months. That is over 100% return on your money.