Single Family Home Rental "Breaking even"
My background in Real estate would consist of owning my home and 1 rental property, that I break even on, every month. By "break even" I really mean, that my mortgage for that property is covered by the rent, but anything extra, is out of my pocket. Ok, so I'm not really breaking even.
I got into this rental situation because we had an opportunity to purchase an immaculate foreclosure, and needed to cover the mortgage on our previous home.
I found out from the bank that I can drop PMI on my loan if I pay $11K on the mortgage principal. This would reduce my payment by about $225/month.
I can get the money from my 401K (loan). I feel like in this case it would be worth it, since I'd reduce the amount of interest over the life of the mortgage, and increase my cash flow from 0 to abt $225/month.
I understand that this is financial advise and none of you represent me, or can give me binding advice, I am just looking for some input and thoughts from the more experienced people here.