Rental Property Dilemma

6 Replies

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?

Promotion
Sundae
Property Marketplace
Find Professionally Vetted Properties from Motivated Sellers
Eliminate the need to hunt for houses again. We bring your next investment opportunity to you.
Sign Up for Free

Hey Michael, 

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. 

@Michael Babb

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.