Refinance from negative cash flow to positive cash flow
Hello BP Community!
I have a rental property in Philadelphia which within the past year I just refinanced to reduce the term of the loan from 25 years to 15 years. This property was originally purchased as my primary residence and then became a Single Family Home rental. In the recent months I have been looking to purchase my next single family home rental and have been analyzing other deals in the area. In doing so, I decided to analyze my current property, which I have never done, being that it was originally purchased as my primary residence. In doing so, I discovered that this property (with the refinance) now has a negative cash flow of about -$1,200/year. I am debating what my next step should be.
1. Sell the property and purchase another Single Family Home rental with potential positive cash flow.
2. Refinance (although the last refinance happened about 1 year ago) to a longer term mortgage to bring it back to a positive cash flow property.
3. Nothing.....keep the shorter term mortgage and enjoy the positive cash flow once the mortgage is paid off.
Thanks in advance for everyones input/advice, and I would be happy to answer any questions that might help in this decision.