Condo Complex with less than 50% Occupancy

[Erick Garske]

Unfortunately, the rental condo unit that I own is within a complex that has fallen below 50% owner occupancy. Because of this fact, I need to market the property to investors on only. The condo is located in San Marcos, CA. Its worth 185k and has a 29k remaining on the first mortgage. The HOA is $250. and the rent is $1175, the mortgage is $437 PITA. The first is at 2 1/8% variable.

I see three scenarios in lieu of selling the property

1. Pay off the first completely and yield a 12% return on investment.

2. Get an HELOC and use the proceeds to invest in another property outside of CA.

3. Do a cash out refinance.

I would prefer to do option 2, but need to find a bank that will offer HELOCs on investor properties.