Financing Long Island

[Patrick Nolan]

SCENARIO: I've got a 2 Fam on Long Island that I bought in 2012 with a 203k FHA loan. Purchase price was 315k, 140k improvements ... roughly 460k starting balance down to about 360k now with a rate of 4.25 30 yr fixed. Rent roll is 5200/mo with carry cost of about $3850/mo. (Blind spot on this is I'm STILL paying PMI of about $300/mo)

Local credit union will refi only back to 30 years max LTV of 75 with no cash back and 70 if I want to take cash out. Current value is about 600-700k.

I’m a buy & hold investor looking for long term income and I’d like to try and brrrr property beginning this year. I have plenty of cash available for that. Primary residence is worth about $650k with a mortgage of $425k and monthly carry cost of $4k with 28 years remaining on 30 year loan at 5.25%. I’m in the process of refi for this back to 30 and down to about 3%.

QUESTION: What should I do with the loan on the 2fam? I’d like to refi and I know I can pay down balance with extra money, but should I? I’m 38 years old with a public sector job and can retire and collect my pension at age 55. (Same status for my wife on job/retirement) Adding 8 years back on to the payoff date doesn’t feel right when my ultimate goal is income.