Bought a BRRR but can’t refinance..

[Dominic Manyrath]

Hello BiggerPockets members,

I have bought my first home and am almost done renovating. My initial plan was to turn it into my first rental but a couple things came up and have me reevaluating a possible sale. 

estimated I could possibly cash flow 1-200 at worst break even. 

Or I could sell and profit 40k after fees. This is due to forced appreciation of renovations and market up trend. ROI is based on 14k investment.

I am now in 14k debt (renovations) and missed a couple credit card payments due to budgeting terribly and not having it on auto pay. 

I wanted to refinance with these amazing rates, and also get out of PMI, would save an additional 180 for cash flow.

I ran into the issue of my credit score being so bad I can’t refinance. (maxes out cards and a couple missed recent payments)  So it’s either stay with my current mortgage and try to slowly pay off my debt 

Or sell and start over.. I worry about my current credit hindering me from my second deal

Any advise for a first timer?

[Account Closed]

If nothing else, you got a really good education out of your first deal. 

If cash flow is "1-200", with negative reserves, but sale would be 40k back after you pay off the loans, I'd sell.  All it takes is one bad tenant (or other unexpected major issue) and you will be in more trouble than you are now. 

You can get various loans that don't look at your credit, only the asset, such as commercial...  but not having reserves would probably sink even those.