Need advice on making decision hold or sell
Hi Bigger pocketers,
Through bigger pockets, I've been a big fan of BRRR. I bought and hold properties in southen california area ( total 6 investment properties). My investment properties would be considered class B or C... with close to 1 % rule (0.8-0.9%) rental income.
Properties value has gone up.. and if I were to sell the properties I would have been making around 50-70% gross profit. ( about 55k-70k)
Now the problem is that I have about 280k in helloc... that kinda burden my finances especially due to FED increased rate. I feel that I need to take care of this problem ASAP before rate goes up to 5 or 6 % ( currently it's the same as prime)
I need your advice,
Should I start selling my houses in order to pay off the helloc? or should I do cash out refinance... ( max I could get is around 80k for all the properties) and continue the BRRR strategy?
or what other better way to handle this situation?
I'm not sure how far are we to recession, this make me nervous especially on holding C class investment properties. During recession, house price went down significantly and there were scarcity of qualified tenants.
Thank you very much for your time and advice.