Refinancing from 15 year to 30 year mortgage

[Jason A.]

Greetings!

New to BP and investing. I'm super impressed with how helpful the community is here and I already feel at home!

Long story short, I'm considering refinancing my fixed rate 15 year mortgage to a fixed rate 30 year mortgage to reduce monthly payments and become cash flow positive. I've refinanced two or three times over the years as rates have reduced and landed on the 15 year mortgage to save tens of thousands of dollars in interest over the life of the mortgage.

Here are the details:

• Purchased: 2009
• Property type: Condo
• Market: Downtown Chicago
• Equity: $100k
• 15 year mortgage terms: 3.625%, $1,150/month, 13 years remain
• HOA: $580/month
• Other expenses: $50/month
• Property taxes: $3,300/year
• Income: $1,900/month
  

I had been comfortable with this in the past because I'm enjoying some capital appreciation but after spending a few weeks on BP, I'm questioning whether I should refi back to a 30 year mortgage (monthly mortgage payments would be around $650) to capture positive cash flow.

Seems like a no-brainer but wanted to test with the pros on BP for some pros and cons I'm probably not considering.

[Tamara Deering]

Have you been taking your depreciation?  It might be time to consider selling this investment (1031 exchange) to a new property to maximize your tax advantage and gain cash flow but as @Theresa Harris said it all depends on your goals.   I would recommend talking with a CPA and determining the best action for you to take to align with your goals.