Escrow Shortage - Mortgage Increase of $600/mo. No longer cashflows !

[Jake Oakes]

I recently moved out of my first house hack which was a duplex. I bought it turn key from a flipper almost 2 years ago. I moved into a single family home with my fiancé we plan to live and flip or BRRR it.. Recently my duplex's property value was reassessed and my taxes went up almost 3x what they once were (bc it was assessed pre-flip before my purchase) so my Escrow shortage is about 4k. This added about $600 to my mortgage for the next 12 months, and I'm unsure if it'll decrease to the norm again thereafter. The duplex is not profitable currently due to the increased mortgage payment and I'm set to lose about $350 a month. Should I consider refinancing to help decrease my monthly payment (my current rate is 6.41%), should I cut my losses and sell the property (which I'm hesitant to do bc I don't expect to househack again), or is there any other route I can take? Any guidance and input would be appreciated !!

[Joe S.]

It happens….

 
In certain parts of Texas the property taxes are raising faster than rents can keep up.

It’s not talked about much, but rentals are not always a moneymaker, especially the first number of years.