Refi or HELOC an option or should we sell and start over new

[Samira King]

My husband and I are at a cross roads on what to do with our property in Ca. It is a 3/2 SF with a pool in the San Fernando Valley. We are trying to find a way to keep that property and rent it out and refi it to buy another with the BRRR method. We rented the property out the previous year for $400 more than our mortgage.

However, we want to continue to rent out this property and be able to refi it. We are both in real estate and can not show consistent income.

Should we sell this property in San Fernando Valley to jumpstart our investments elsewhere - like Sacramento or is it possible to hold on to this and refi and be able to cash out to buy second property. 

Our house was purchased at 404k, estimated value now is around $570k. Our credit scores are between 620 and 660.

Any advice would be greatly appreciated. Thank you in advance

[Jaysen Medhurst]

@Samira King, what will it rent for? It's unlikely to be a great rental at a $570k FMV. You'll need to get close to $6k to even hope that it will cash flow (after refi).

Selling is probably the best option and work on those credit scores.