San Antonio Rental Market

[Joe Crupi]

So here's my situation.

I bought in French Creek Village area of San Antonio back in 2006. House was $194k, and refi'd a few years in at a lower rate and get ex off mortgage. House now has an ARV of about $265k, and owe approx. $63k. Now, my current monthly rent of $1440 ($1600 - $160 for PM) doesn't even cover my current mortgage payment. In addition to that, I was looking at doing a cash out refi, one reason to get the cash to use for another property, and two to get my full VA benefit back. However, running the numbers it looks like my return on equity would be even lower. At my current rent, I'd be out of pocket almost $450/month with a mortgage of $198k at 5.75% over 30.

Are rental rates just not keeping up with property prices?  I think there may be a little room for rent, but it doesn't look like too many of these homes are renting in the high $1k or low $2k range...?   

Should I just sell it since the ROE is so bad, or continue with the refi?  Its making it hard to find other properties that cash flow enough to cover themselves and the extra $450 month and STILL have extra cash leftover.  Kind of in a pickle here on what the right move is.

If you wanna check out property for rental evaluation purposes, its 7723 Mary Carolyn St, San Antonio