Investor · OH · Member since 2019 · 5 posts · 3 votes
Hi All,
I recently finished renovating a single family home which is currently on the market for sale in the Cleveland Area. The renovation took much longer than expected (1 year) and as we know market conditions have changed considerably. I'm currently paying a hard money lender a monthly installment payment for the funds used to acquire and renovate the property. I'm considering refinancing at a lower rate and renting the property out, but with interest rates increasing my monthly cash flow would be break even. I'd like to know when it makes sense to BRRRR the property as a rental vs. continuing to wait for the ideal purchase offer from a buyer. Can anyone share any general rules of thumb or advice on how they've dealt with this successfully in the past?
Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
3y
Refinancing it out and holding is what I would recommend. It will save you from the costly hard money loan, and even a breakeven property waiting for a purchaser is better than holding on hard money and keeping it as is in my opinion.
Refinancing it out and holding is what I would recommend. It will save you from the costly hard money loan, and even a breakeven property waiting for a purchaser is better than holding on hard money and keeping it as is in my opinion.
Thanks for the advice, Shane! Seems to be a reasonable path given the high cost of hard money.