Should i sell refi or what?

[Vanessa Roark]

I have a home in Kennesaw Ga north of atl

that I have been renting out for past 4 years near a college campus l. The lease is up and tenant is moving out. I’m thinking of putting 3500 into painting fixing interior for another renter or to sell. I think it’s worth 225 if I sell it based on realtor wanting to list it, When I got it appraised 3 months ago it went horrible 159k when a house down the street just sold for 198k. Anyways my current interest rate is 4%. If I refi it will be 2.85% and changing from a 30 to 15 year mortgage. I wish I could take money out to buy another property but don’t want to pass on this low rate. Is it best to sell, refi and rent it out again?

[Tucker Cummings]

You've got a couple different options and it sounds like the best thing to do will be measure you're ROI for each scenario:

1) Put $3,500 in for touch ups and continue renting. Can you raise rent a little? What's you're ROI if you do that?

2) Don't put $3,500 in, just rent as is. What's you're annual NOI?

3) Put $3,500 in for touch ups and sell. How much could you sell for? What's the proceeds?

4) Don't put $3,500 in and sell. How much could you sell for? What's the proceeds?

5) Put $3,500 in for touch ups and refinance on 15 year loan at lower interest, continue renting. Considering closing costs and the touch up costs and lower cash flow, it doesn't sound like this will yield a good ROI.

6) Mentioned by @Jody Sperling, put in $3,500 for touch ups and put a HELOC on it. Lots of times with HELOCs there are no closing costs and keep in mind that you will only owe on the HELOC if you actually draw down money. Same way you only owe on a credit card when you use the credit card. You can also now draw down from HELOC, purchase a property (ideally in a short term loan fashion such as a BRRRR or wholetail), then refinance that second property pay off your HELOC. With this scenario, you get the best of both worlds - liquify your equity without incurring debt so you can leverage it for more investments and increase cash flow.