Should I Refi my first rental property
My wife and I just bought our first property. It is a HUD home we got for $24,600. It has a lot of work that needs to be done. We are pretty handy and will be able to do most of the rehab ourselves. We are putting in new floors, total paint job inside and out, new kitchen. The comps for this 2/2, 1025 sq ft house are $65,000 - $80,000. The estimated total refurb will be $7500. Like i said, we are doing almost all of the work.
The total cash invested when we go to rent will be $32,100. We will be asking $700/mo for rent based on the rental comps in the area.
QUESTION: Should I refinance this property with a $50,000 30 year mortgage?
Excited to get involved with BP!!!