Where to go from here?

[Paul Serrato]

Hey y'all rookie investor here! I own one property as of now and have some great tenants occupying it right now but they are planning on moving out at the beginning of next year. Trying to decide if I should sell (bought the house for a great price 6 years ago), refinance or keep renting once they're out. Any suggestions?

Thanks!

[Jason Wray]

Paul,

Now would be a great time to refinnce before that rental income is no longer on your scedule E or able to be used to verify additonal income with a bank/lender. Take some cash out to clean up the place when they do move and tuck away a little as a fall back. Use the other portion of the cash out to buy another property and build your REI portfolio. That way when you are faced with a renter leaving its not a big deal because you have mutiple properties that soften the blow with negative cash flow.