just asking for some advice as a new investor

[Ryan Havens]

my first brrrr and it's past my 6 months to refinance. with these new interests rates if I was to refinance I would be braking even. so here is my predicament. I used a HELOC for the down and rehab and I have good renters in the sf home.my HELOC is a 15 year fixed 5.9 and my primary is a 30 year 5.1.

so with the 15 payment and the 30 year I'm going backwards $100 a month however with the 2 I'm paying $400 month princibal.  so I guess I'm making something just not in a (in my pocket) form.. 

the education I received is priceless.l and still luring.

In my original calculation I was going to refinance get all my HELOC cash back and start again. now with the interest close to 8 if I was to refinance I would break even if not loosing a bit.

the property is in the Midwest and I'm getting top market rent for the location. 

so do I keep it where I am with all my money stuck so I'm back to saving money to reinvest or do I refi. realtor estate it's value is $175-180 I think I can up that with some curb appeal.  I'm into it total around $143 so I have equity. am I stuck on cash flow as opportunity as passing me bye. yes I know I goofed, I'm proud I have equity in my first brrrr I could have done better. it's what you do with your mistakes that makes  you a better person. thanks 

[Dave Foster]

@Ryan Havens, if you goofed (not saying you did necessarily) it was by not having your numbers stress tested much more stringently.  I do like that you've identified that you're not as bad off as it feels - The Internal rate of return for you is still very positive.  it just feels icky to write a check every month.  But to be off by $100 a month isn't exactly a massive error.

But I'm not sure a sale will benefit you any at this point.  It sounds like you'll invest some money into getting it ready for sale.  Then your realtor has given you a range - and this range is just about always going to be optimistic.  And then you have to factor  negotiations and closing costs.  And then you have to factor in taxes on the short term hold.   Just a guess but I think you'll be lucky to walk with $8k net in your pocket after all is said and done.  And that is still going to leave you "saving to invest" again. 

The BRRRR method, or @Corby Goade's model works because time is your friend.  Because time smooths out the speed bumps.  It lets your property catch up to y9our mistakes or mistiming.  And it does it while minimizing the trauma to your bank account.  I had many of 1031 clients who lost 80% of their net worth in the 2008 debacle.  None of them who didn't have to sell ever lost a penny and are worth more now than ever.  Time was their friend.  

If you can wait then I'd recommend it.  At least wait another 6 months or so.  This will give you a good feel for where the Fed is going with rates.  It will give you some time to explore some of Corby's suggestions.  you'll save that much more money and have that much more principle in your old property.  And it will then let you take advantage of a 1031 exchange.  which would be a game changer for you.  Instead of walking with $8K you would end up with $15K - $20K to be used to purchase the next property. And that by itself gives you so many more options.