Property in Las Vegas. Should I Refinance? Or Should I Sell?

[Jason Pasion]

Aloha! I purchased a single family home 5 years ago in Las Vegas for $162,000. Current comparable price is $178,000. My mortgage payment is $1180.00/mo. I currently have renters who are paying $1100/mo. 

A mortgage company offered to refinance which would bring my payments to $883/mo. 

Should I refinance? Or should I sell and get another property?

Any advice would be much appreciated. Thank you so much for your help in advance!

Mahalo, Jason

[Charlie Fitzgerald]

What was your intent when you bought the home 5 years ago?  Was it an appreciation play, in that you were going to hold it  x number of years and sell to make a profit on the appreciation?  Or, was it a long term hold acquisition in which you were buying the asset to keep in your rental portfolio and have tenants pay it off for you?  

If it were me (I've lived in Las Vegas for 23 years) I would be inclined to keep it unless you have decided to not be in the landlord business.  I can't advise on the refinance, because you have not given me enough information.  A lower payment does not mean it's a better loan, or a wise move.  If you want to email the details of the refinance, I'd gladly tell you. I also need to know what the current loan details are.   If you want to email me the address of your rental, I'd gladly give you my opinion of its present value, relative to your purchase price of $162,000 5 years ago.  Your numbers above for purchase price and comparable value 5 years later are suspect to me. 16,000 in appreciation over a 5 year period is equivalent to an average of less than 2% a year appreciation.  Even if your home was one that declined in value during 2011/2012, unless you paid way over value for it when you acquired it...it's got more appreciation in it over the 5 years since you bought than $16,000.