I currently own a few rental properties in the Colorado Springs, CO area, but have one in particular that I could use some advice on and how I should move forward.
The short story is, I purchased this home in 2006 when everyone was purchasing homes right before the market collapse and got one of "them fancy interest only loans" :) This is my one regret with regard to real estate investing and all other homes have a fixed interest rate that can be planned around. The loan stayed pretty steady for a while and I was making some good monthly cash flow. However, the loan has moved from an interest only loan into a loan with a higher interest rate than the industry average and my cash flow has dwindled to almost nothing.
My question is, do I refinance and pay for the additive costs of doing so or do I sell while the market is still good and move on to something else? I hate thinking about losing an asset, but I just wonder what would be the best way forward?
Hey Michael, have you checked to see if you can do a low/no fee rate and term refi with your current lender? If not, you well know that under $250-300K is a gimme right now for resale in The Springs
However, the loan has moved from an interest only loan into a loan with a higher interest rate than the industry average and my cash flow has dwindled to almost nothing.
How did that happen, you attempted a refi or the loan was an arm due in X?
The loan was an ARM that adjusted, unfortunately.
@Michael Babb what would you do with the money if you sold? I vote for the refi and second idea of checking with the bank that did the loan originally.
I would refi for sure i would hate to lose a good property if i do not have to. just a quick thought, i just did a mortgage on a new house with security fed credit union, and they payed all my closing cost, not sure it would work for in your case but just a thought, good luck.
It is a sellers market right now. I have sold several of my listing for above the asking price with multiple offer. Sold one home to a guy in Afghanistan last week because I use the Matterport 3D Virtual tour and he could walk the house as he pleased without physically being present (check it out here: https://matterport.com/). Sold another listed at $319,000 and will be closing shortly at $327,000. Most homes that are listed properly under $200,000 are going quick with multiple offers.