Are you Selling, Renting, or Refinancing?

[Noah Bacon]

One of the most common things I am hearing of recent in the community is: Should I sell, rent, or refinance my primary residence? 

I'd love to hear what decision you are leaning toward or have made in the last 12 months with this question in mind. If it was 2021, maybe even the middle of 2022, I wouldn't even ask this question as I would expect the results to heavily favor refinancing your primary into a rental property, taking the funds from your equity growth, and reinvesting the capital into the next property.

I have heard many homeowners/landlords recently leaning toward selling their primary residence and moving the capital into something more passive. To me, this would have never been the conversation a few years ago when rates were more comfortable for the average investor (likely 5% and below), but it is the reality we are in now!

On the flip side, I have also heard many investors keeping their property seeing the longer term benefits, while taking a hit monthly to keep it. I am in this boat as things stand and have a very long outlook on the property that is not cash-flowing. I understand everyone's situation is unique and dishing out a couple extra hundred dollars a month on a rental property is certainly not on everyone's agenda or even doable, but I wonder how many others are thinking this way in the short term?

A better question might be: What are you doing with a property that has negative cashflow or is not producing the return you expected?