Sell Rental or Refinance?

[Brett Ducharme]

So I find myself in a situation where- as I learn more about BRRRR, am having difficulty in choosing what the best option is moving forward.

In 2011, I bought a 3/2/2 for $91,000. I did manage to take a HELOC for $30k over the years. Currently, I owe $106k all together. It is also being rented out. The realtor I work with, said the house could get around $200-210k. Should I sell the house, take the profits and invest in other properties? Or should I refinance and purchase another property with a line of credit?

Thanks for any information. 

[Joe Villeneuve]

Your choice.  Do the math.

You owe $106k and can sell it for $200k...that's a "walk away" after closing costs of at least $80k if you sell, and if you refi (75% of the ARV of $200k), you would "walk away" with around $60k:

1 - How long, if you keep the status quo, would it take to cash flow and equal $80k?

2 - How long, if you refi, will it take in cash flow to equal that same $60k?

3 - If you sold, and had $80k to work with, and used it as 20% DP's on similar properties (that would be 2 properties), how much cash flow would you be getting...compared to above?