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Updated over 10 years ago on . Most recent reply
![Michael Beinetti's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/184555/1621431687-avatar-smackrabbits.jpg?twic=v1/output=image/cover=128x128&v=2)
What should I do?
I have a gorgeous duplex in a nice neighborhood in Rochester, NY. It was the first house I ever bought (note: sentimental value) and it has been a great property to own.
Some of the specs: Two family, Boston style. 1 bedroom downstairs rented at $800/month and upstairs with a 2/3 bedrooms rented at $915 (under-rented as the tenants have been there 6+ years and my rent hikes have been slow in coming). The house is in good condition with the only major improvement looming ahead is a new roof. I have around $40k in equity in the property (Market approx. $135k and loan bal. $95k) and 20 years left on an FHA mortgage. There are a variety of things I could do....but I'm not sure what is best. I'm curious what other people would do. Here are my ideas.
>Sell. Hopefully for the full market value (minus noted pending roof repair) and cash out.
>Refi. Problem is the house will most likely appraise around $130k-$140k and the few lenders I've spoken to need a lower LTV for the investment refi's. Understandable. Not definitely an option right now.
>Keep it. Get the rent up where it needs to be. Get the roof done. Refi in a few years to a 15yr conventional and keep it rollin'.
If I cash out (option 1) I would like to turn around and reinvest in additional property. So the thought isn't to bail on the investment, but to use it as a catalyst....the questions are for what and when.
Other options? Any input is greatly appreciated.
Most Popular Reply
![Jon Holdman's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/67/1621345305-avatar-wheatie.jpg?twic=v1/output=image/cover=128x128&v=2)
If you sell you will have $11-13K in selling costs. Plus the roof. So, you might net $20K or a little more. That doesn't seem like a good plan unless you can use that to buy something new that's more profitable. Have to be a really good deal to overcome the costs of the sale.
Refi seems impractical given the values. I don't see you getting more than a few grand. And why bother? What's the rate on your existing loan?
Holding seems fine. You're getting $1715 out of a property worth $135K. That's a pretty good deal.
Well, there is NO room in an investors vocabulary for "sentimental value". Forget such words. Investments are a numbers decision.