15 year or 30 year mortgage with a story?

[Chance Noffsinger]

Hello All, I am new here to BiggerPockets.  I know there are a ton of posts on 15 year vs 30 year mortgages, but I did not find one that fit my scenario.

I currently own a Single Family rental in Boulder, CO.  It used to be my primary and I refinanced to a 15 year in 2011 at 2.65%.  I have almost no cashflow on it.  Now that I want to build a rental empire, I am tore on doing a refi to 30 year at 4.7% to have the $1350/month in cashflow.  I am really torn on going to a 30 at a much higher interest rate, but I can do a lot with the extra cash.  Any advice on this would be helpful.

Chance

[Thomas S.]

The very first thing you need to do is sit down and learn the value of cash and how to best invest in real estate. Your present property is not a investment.

Your $400K equity is costing you about $3300/month in lost income due to the fact that you are ignoring it's opportunity value. It's creating negative cash flow and deluding any appreciation you are getting.

This is a bad, no a terrible investment. Considering you believe it is cash flow negative by $100 and I believe it is closer to $3400 negative cash flow I would sell it immediately. Pulling out the equity will not work on this property, it will only compound the problem.