BRRRR under pressure in Chile ¿on the hook? ideas to get of

[Giorgio Peirano]

Hi everyone.

My first time writing a post here in BP, Im from Chile (South America).

I need some help on my BRRRR because i got stuck in latelly change of conditions.

I auction a condo on december 2020. I pay (all in) arround U$76.000. After some cleaning and paint/repais (i DYI), appraisal come back at a value of U$97.000. First success 27% equity improvement.  I start the proceess for the loan and because pandemic, all paper work on 2021 was a total disaster. Bceause inflation banks now reduce in Chile from 30 to 20 years maximun, and the rates increase a lot. What it´s suppoust to be a 30 years loan for a U$100/month cash flow with 100% of my money recover NOW i have to decide to:

Option 1: ask for less total money 80%, leaving 20% inside in order to match the monthly Bank Payment to the rent im getting (cash flow U$=0).

Option 2: get out 90%, leaving 10% inside and have a negative cash flow.

I always consider that i can always renegotiate the termns if the situation in the country get better in a couple years (i hope). 

Any opinions on option 1 or 2, will be help full.

Im very frustated because even if i know i add a good piece of equity, but the deal is getting tough.

Thanks on advance for the help

Regards

Giorgio

pd: thanks for the patience with my english