Cash out refi or 1031
Hi Everyone,
I am new to Bigger Pockets and just beginning my research into REI. I'm looking into options to fund my first "wise" investment property. My wife and I own a house in Idaho that we are currently renting out. We bought it in 2012 and recently moved to Virginia for work. We kept the house primarily because I wanted to start owning rentals. At the time I did not have the proper tools or education and now I wish I would have made some different choices. We refinanced the house a few years ago to a 15 year. The house now has negative cash flow according to the figures used on BP for rentals (about $150 per month) The rent does cover mortgage, insurance, taxes, HOA and PM. There's approximately $85,000 in equity in the house. The options I'm considering are a cash out refi again but back to a 30 year. Running those numbers if I take 30k out I'm looking around only $50 cash flow but I could fund a new property soon. Or I could wait until the current lease is up, continue to educate myself, save some more from personal income, and do a 1031 this summer. The time limits on a 1031 make me a little nervous since only properties outside of the area I live really make sense to buy. Looking for thoughts and advice. Also looking for insight into starting an LLC. The mortgage company for my Idaho house informed that they would transfer as long as I had a real estate attorney do the paperwork.
Thanks,
Jay Younger