Think I can refinance?

[Michael Filipidis]

Recently purchased my neighbors property doing a seller financing deal. Originally he wanted 115k but after months of putting him off and him wanting to sell it and retire far away, I dragged him all the way down to 82k. Deal was 3k down and 600 dollars a month payment (350 principal, 250 interest) for 3 years. I would then go and refinance into a mortgage.

Current rent on the property is 1300. That leaves me with almost 200-250 a month cashflow after payment, taxes, HOA, and insurance.

One of my very good friends works for an appraising company and he came around and we did a light walkthrough of the property together and compared recent comps around the area. He says that the property can easily be appraised for 95+. With the rising prices and demand in my area I calculated that by the end of next year the property could be worth very close too 100k. Toward the end of next year I will have a remaining balance of around 75k. That could leave me very close to 25% in the property. When would you think is the best time to go ahead and refinance into a 30 year loan, to lower the mortage and package together the taxes/insurance in escrow?