Dead Equity - Un-refinanceable
Hello BP!
In the past couple weeks I’ve spoken with over 30+ banks, not exaggerating, and I was unsuccessful in refinancing a manufactured home I bought & rehabbed a couple of months ago - asking many Nationwide Banks, Local Banks & Credit - a few will, but only if its a Primary or Vacation Home (LESSON LEARNED!!!)
No doubt, this property will generate great return. 18%ROI - We bought it for 32k+17k Reno; all in for $49k... in a very desirable neighborhood. ARV is probably $80-85k. But knowing the cost of having my equity stuck limits my growth with future opportunities.
I ask you, would it be wise to move on and leave $49k of “dead equity” for a $950/month return? or SELL for a decent profitable Flip! - then purchase the next “bank-friendly-to-refinanceABLE property”, - rehab, re-fi, and repeat!
Thanks!