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Updated about 8 years ago,
Refi my first rental or wait a few years?
Greetings. I see this question a lot and reading the discussions I am still unclear on what the best decision should be investment wise.
Here is the breakdown of the rental
- Purchased 3 years ago FHA for 164K
- Interest rate 4.25
- Mortgage 1137
- Amount left 153k
- Current Value 180k (judging based on a comparable that just sold in our neighborhood)
I also have a first time home buyer tax credit which is 35% of my interest per year that maxes out at 2k.
Rental specs
- 1350
- cash flow 213
Future cap ex
- new roof in 5 -6 years
Currently the 1137 payment includes a 176 in PMI so should I wait and attempt to refi to a 30 year conventional with the LTV at 80 percent? Or refinance to a streamline fha now to increase my cashflow by x? I guess another factor is how much would the out of pocket cost to do the origination.
I guess I should not be concerned about increasing my term being that the interest is being paid by the tenant anyway and leveraging that property to buy another that cash flows properly could compound paying it off faster then just purely trying to pay it off without the leveraged property. Is my logic sound?
Thanks for your help in advanced!