Keep and refi or Sell SFH in Memphis
Hi All,
I am on the fence of what to do with a 3x1 SFH in the Berclair area of Memphis, TN. This was my first deal that I bought in September of last year with the intention of BRRRRing it and original numbers worked out to be a 10% CoC with just a few thousand left in the deal. Since then, lots of growing pains have come along with it including: firing the first property management company, going way over budget for the rehab, vacancy 8 of the last 10 months, doubling of interest rates since i started.
In order to get top dollar for rental rates I recently added central air and cooling to the property which is part of the reason for going over budget. Originally purchased the property for 100k with an ARV of around 155k with 10k of rehab.. Cut to 10 months and I have about 145k into it including closing and holding costs.
Should I:
Cut bait and sell and accept a loss - take that money and look for a better deal near my other rental in Ohio
or
Keep, cash out refi at double the rate i had originally expected and accept negative cashflow when budgeting for capex, repairs, and vacancy and hope to break even after selling in 3-5 years banking on appreciation of 3% per year.