Buying points to get a better rate & lower monthly payments

[TyaKym Echols]

We are in the process of Refinancing our rental property for the first time. Given that it’s an investment property, the rates aren’t where we want them. Thus, we can bring 5K to closing to buy the points that will allow us to lower our interest rate and lower our monthly payments so that we can price the property for Section 8 tenants (this is the population we’ve received the most interest from, but our current payments don’t allow for this clientele because we’d be taking on too much of a loss each month).

What are your thoughts?

Also given our economic climate with COVID-19, low inventory, and inflation, we could sell the property and make about 70-100K. What are your thoughts on selling right now? Is that a “better” choice?