@Terry J. Ummmm...what are the actual numbers that you're dealing with on the property. When you're selling a property there are costs (roughly 10%) and you could be stuck paying some capital gains. And you have to get the current renters out and there will be some vacant period. Lost rent, holding costs, etc. can all eat into the stated $15K in equity. In my limited experience, most people underestimate actual costs to sell and then figure out that what they should they had in equity can vanish pretty quickly. So it's hard to give much tangible advice. That said, if 18% cash-on-cash properties are staring you in the face, I'd just sell now and put whatever I had left over into one of those. I don't know that I'd go through the time/hassle of rehab, refinancing, finding new tenants, etc. for a 4% ROI.
Your equity position sounds small.....maybe not enough to be worth the sale after capital gains and the cost of sale itself. Is there a way to refi to get better terms or remove mortgage insurance if applicable?
Then, look at the property expenses. Is there anywhere to cut? Can you raise rents? Can you bill back utilities (if you aren't already). Can you cut the PM fee (if applicable) and self manage?
More good advice, thank you. I plan to refi to help in that area. I have also been shopping around for cheaper insurance. After doing some more number crunching, I think it would be wise to use that 30k for another property instead of trying to put it into this one. That way, I can use the new property ROI to offset this one for now. Does that make sense?
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