First property investment

[David Torres]

Hello all,

I purchased 6 months ago my first investment a SFH in San Antonio Texas and is sitting down 30 days already and not offers. We are trying different strategies and nothing. this property was finance through hard money loan and by October 1st I will have to pay 1% for renew or pay in full the property. The thing is what would be my best option? ( I'm open to any valid suggestions)

The remaining balance is $180k and the rent for this property is 1800-1850 and if I refinance the loan payment will be $1750.

Pay in full and rent it out ?

Refinance ?

Try to sell even losing money?

Open to suggestions....

[Nathan Gesner]

If it rents for $1800 and your mortgage is $1800, then you're losing money. Rent should be high enoguh to cover the mortgage, plus set aside approximately 50% of the rent to cover maintenance, vacancy, capex, taxes, insurance, and property management. If your numbers are correct, you're losing around $900 a month and you'll lose about $13,000 in your first year. The only thing that could save you is appreciation, but we're in a peak market that is likely to cool down over the next couple of years. Do you really want to lose $10,000+ every year until it recovers and you can sell for a profit?

Here's a guide that describes what good cash flow looks like and how to analyze a property.

https://www.biggerpockets.com/...