Keep, refinance or sell?

[Catherine Javier]

Hello everyone! Asking for your expert opinion. Any thoughts are appreciated!

We bought at $212k, we put 20% DP used DSCR(~45k because it was appraised at $206k).

Some of the updates we did: changed roof& hvac, minor cosmetics, replaced driveway spent probably $40k.

Remaining loan is about 152k @5.75%. Mortgage is only less than $1400. For 2025 we are assuming it will rise at $1500-1600

Same townhomes pending at $260’s; if we upgrade kitchen/bathroom around $275 up

Current tenant leaves Dec 31, 2024 Assuming rent stays the same for LTR, we will be cashflow negative since Home/Hazard Insurance and Taxes will increase inevitably.

Should we:

1. 1. Upgrade/Renovate update Kitchen, Bathroom & Flooring which would cost us about $50-60k with furnishing, keep it as MTR or STR then refinance or **midterm rents 2400 and up with comps; then Refinance or….

1. 2. No renovations, but cashflow negative (wont hire property manager anymore just to breakeven) @$170-1850

1. 3. 1031 and buy in WA where we can manage on our own

Same problems with others, we have limited cash available. if we do buy on WA , few concerns are:

• We are intermittently rehabbing our current home to be rented as Nursing Home eventually hopefully in 2 yrs.
• home in WA are more expensive and would need higher downpayment and it would be challenging for us because our DTI is high already, we would have do to a dscr thats 100k++ DP

Sorry for the lengthy post, hope to hear from you!