I am new on Real Estate Invenstmet

[Jason Hernandez]

Hi BP, I just rented my property and I'm not getting a lot of return back because I pay $ 911 for the mortgage and I have the property rented for $ 1100. I also pay a property manager %10 of the rent. Is it better for my situation to refinance the property to have more cash flow or do I keep it as I am doing now? I new on all this of investment in REI.

[AJ Leman]

I agree with @Andrew Fredrickson. 

You can also think about the property in terms of the 4 streams of income/wealth creation from real estate: 

1. Cashflow
2. Tax Benifets
3. Appreciation
4. Debt paydown/Equity growth.

Perhaps your property represents a big winner in one of these areas?  Doesn't seem like a cashflow champ, and if you refi the property then your mortgage will probably be going up - but you'll have the cash to play with.  

I was in a similar situation with my first rental.  The bank let me use equity from that unit to buy more - so it was worth it to keep it.  Plus, even though the cashflow is not great it has appreciated nicely.

One other thought: Would managing the unit yourself for the time-being be an option?  I am by no means a great property manager (i'm too nice!) but I have done an OK job over the years and saved a bunch of coin!

Good luck!