Renting My Condo and Mortgage Refinance

[James Brown]

One of my goals is to build cash flow with a rental property. I am slowly outgrowing my first home (1br condo). I am at the point where I need to decide to rent my place out in the future or plan to sell it for a better down-payment on my next house. I could also sell it when I buy my next home to buy a better rental property.

If I decide to rent, I would need to refinance pretty soon to lower monthly payment and get rid of PMI. I want to do this while rates are still relatively low. My issue with renting is that my total monthly payment including taxes, HOA, ect would be $1165. I could only rent this unit for between $1250-1450 (on avg $1350).

Do these numbers make sense enough to refinance my condo + bring 10k to closing in order to lower my monthly payment by around $195? With the goal of renting it out? I would effectively be loosing 10k since that is the principal I have paid down so far on my current loan after 1.8 years + the 10k down payment at closing.

Or should I just plan to sell it in a couple years and use the profit for a fat down payment on my next house and also avoid taxes from selling my owner occupied home?

Again, I could also just sell this place when I am ready to move out and maybe buy a better rental property with the money.

Time frame for all of this is 1-2 years before I sell/rent the condo.

#renting #landlordinvest #mortgage #refinance