Updated about 5 years ago on . Most recent reply
Should I sell it or refinance it?
I bought a 28 Unit apartment in 2018. I have updated 90% of the units, increased rents and increased the NOI. Interest rate is 5.5% with a balloon payment of five years. Even though it a D class property, It's cash flowing nicely at this time. Sometimes I think I should refinance to get better terms and pull some money out to continue investing. On the hand, I'm tempted to sell it and then repeat the process again.
Most Popular Reply
It really depends on what your investment strategy is. If you are following Brandon's "7 figures in 7 years" plan, you could sell and get into a 75 unit and live off the profit. However I have seen some 20-30 units that cashflow quite nicely. Sounds like you have one right here. Either way, IMHO I would refinance out of the balloon loan before it expires. Then you have some breathing room to decide next steps.