Fourplex Exit Strategy - Texas

[Milton Granados]

Happy New Year BP!  

I'm seeking advice from the collective genius of BP regarding an exit strategy for a fourplex that I bought in April 2017 using an FHA loan for house-hacking/rental income. Going through this process was an invaluable experience, especially learning how to be a landlord and how to renovate the units - but now it's time to move on to the next property.

Here's a bit of background:

• Current loan is an FHA with $200k outstanding
• Appraised within the last few days at $320k
• The fourplex generates about $3,400 monthly gross income

It was my hope to cash-out refinance to a conventional loan, but it turns out that is not an option for owner-occupied 2-4 unit properties (found out the hard way after paying the bank for an appraisal).  Here are a few options that are currently on the table, let me know what you think about them.

• Opt 1 - Move out, and do the cash-out refinance once the building is no longer owner occupied (can I just rent an apt somewhere else to change my address?)
• Opt 2 - Continue with the refinance just to get rid of PMI, which would bring the monthly loan costs down about $180
  • This would leave about $120k in equity (65% LTV)
  • Could this work as a pathway to a future HELOC?
• Opt 3 - Not do the refinance, but sell in April 2019 (2 years since purchase/move in) which would be an approximate gain of $100k (capital gains tax would apply to 3/4 of the gain for the rental units)

I appreciate everyone's time and input, and would love any other possible suggestions on exit strategies!