San Antonio, TX · Member since 2018 · 6 posts · 0 votes
Hi BP,
I just rented my property and I'm not getting a lot of return back because I pay $ 911 for the mortgage and I have the property rented for $ 1100. I also pay a property manager %10 of the rent. Is it better for my situation to refinance the property to have more cash flow or do I keep it as I am doing now? I new on all this of investment in REI.
Perhaps your property represents a big winner in one of these areas? Doesn't seem like a cashflow champ, and if you refi the property then your mortgage will probably be going up - but you'll have the cash to play with.
I was in a similar situation with my first rental. The bank let me use equity from that unit to buy more - so it was worth it to keep it. Plus, even though the cashflow is not great it has appreciated nicely.
One other thought: Would managing the unit yourself for the time-being be an option? I am by no means a great property manager (i'm too nice!) but I have done an OK job over the years and saved a bunch of coin!
I'm not sure of all the variables, but without drastically increasing your rent and/or lowering your payments, it doesn't look like this property is going to be a great asset for you. Unless you think the property is in a good potential growth area, I would probably consider leveraging into a property that produces a higher ROI.
Perhaps your property represents a big winner in one of these areas? Doesn't seem like a cashflow champ, and if you refi the property then your mortgage will probably be going up - but you'll have the cash to play with.
I was in a similar situation with my first rental. The bank let me use equity from that unit to buy more - so it was worth it to keep it. Plus, even though the cashflow is not great it has appreciated nicely.
One other thought: Would managing the unit yourself for the time-being be an option? I am by no means a great property manager (i'm too nice!) but I have done an OK job over the years and saved a bunch of coin!