Looking for Advice for My Next Step/Move

[Kwok Wong]

Aloha,

I recently purchased my first investment studio unit in Waikiki Oahu using HELOC and some of my saving. Now, I am looking for advice for my next move. Any input will be greatly appreciated.

Purchase price: $210,000

HELOC: $200,000

Interest rate: 3.6%

Rent: $1,500

Cash flow: -$67.50

I was planning to refinance in the next one or two years, put the unit under a 30-year fixed mortgage loan, and pay back the HELOC. That would be the best scenario that I could think of. But it seems like interest rate is not going to go down anytime soon, at least not low enough for me to refinance and cover all expenses. I want to pay off HELOC because I would like to use it for my future deal.

Secondly, I do not want to sell the unit in the next five to ten years, would prefer 1031 exchange it, but if it makes more sense to sell, I would do so.

So, I do not see that I can/should refinance or sell in the near future. Thank you for any response in advance!

Best wishes,
Kwok