Here are the Numbers, What Would You Do?

[Bradley Chiakas]

Have 4 SFH and am looking to expand to 4 plex. I need to either sell or re-fi a condo I bought in 2013. That will give me the capital to invest in a 4 plex. I don't do 0 down stuff and I am also looking for capital to do some rehab for value add and rent increase.

Condo Details:

-Current Value $260k

-Rent $1875, (Dropped from $2375 from 3 years ago due to oil downturn in Houston)

-Mortgage 15yr 3%, total mortgage payment inc HOA/Prop tax $2375

-Remaining mortgage balance $130k

I acknowledge this is a negative cash flow property.  And I have taken maintenance, prop management into consideration during and am fine putting cash in for now.  The reason I don't outright sell is the condo is its in a high development area in Midtown, Houston.  There are massive 5 story, and 25 story developments going on blocks away. The average price/sq/ft will increase dramatically in the next 10 years.  Houston is also set to overtake Chicago in population in the next couple years.

Option 1 Sell:

-9% for closing costs, walk away with $106k for 4 plex

Refi:

-Refi to 30 yr, drop mortgage payment to $1,800

-Walk away with $78k for down payment on 4 plex

HELOC:

-Is this even an option for what I'd like to do?