Should I refinance to another ARM?

[Joleen Barker]

I purchased a home in 2004 that is a rental. I took out an ARM back then and for the most part it has proven to be good considering the market taking the dive it did and my current interest rate is 2.54 I believe the last I looked. It was a 5/1 ARM and I make a regular mortgage payment as the option to pay the lower amount is no longer available. The trouble is the rent I receive for the home is now $300.00 less than what I have to pay out. I would also like to put the home on the market to sell but it needs to have some work done to give it some curb appeal such as the outside painted. I don't have the money to pay for the work to be done on the home. I was wondering if refinancing the home to a new ARM and paying the lower option to allow the rent I receive to pay the loan payment and the home improvements would be worth it if I am only going to turn around and put the house on the market. Possibly it is not worth all the closing costs to do this. I only owe 231,000 and I see other homes like it listed for 297,000. Just wondering is anyone has any ideas. I don't have any problem holding on to the house either. I don't know how to figure how long a person would hold on to the home to make paying the closing costs worth it.

Thanks for any help/advice in advance.