Refinance. Or, Stay the Course

[Sean Stroh]

I am a fairly new investor and have pondered a decision on my first single family home:

a)Refinance the loan to increase monthly cash flow. Or, stay the course with minimal monthly cash flow and faster loan pay off.

I have 9 years remaining on the loan. I have had a tenant in the home for a few years - very reliable. The property cash flows under $100 per month.

b) Refinance. Drastically reduce the monthly payment - increasing cash flow. But, extend the years to pay off the loan. This would reduce risk and provide cash flow for a second rental.

I've set a goal to purchase one SFH per year.

Running the numbers it seems logical to refinance to increase wealth now to provide options as I continue to build toward my goals. 

I am wondering if anyone has confronted a similar situation, if I am missing something, and if there are better approaches.

Thanks!

[Shai Flax]

@Stephanie P. I agree with every word.

@Sean Stroh you're the only person who knows your goals. You can choose the Dave Ramsey way and pay off all your loans or choose the opposite way and build your wealth by leveraging.

Good luck!