Second Property Challenges

[Jayden Espinosa]

Good evening folks!

I am currently attempting to move into my second househack. However, I have run into an issue. I am locked into a first time homebuyers loan and I either have to refinance or pay it off to get rid of it. One of the requirements of this loan is that I have to be living in the property. I have talked to several different lenders and they have all told me the same thing, that I cannot keep the loan and simply move out and get another owner occupied loan. It is state specific to Utah and is a Utah Housing loan. I got it at a 2.75% interest rate and lenders are currently telling me rates are around 6% now. The current payment is $1925 and the new payment would be approximately $2440. I will be bringing in about $2200 a month once I move out.

I would have been cashflowing $275 but now I will be losing $240 per month if I decide to refinance. However, I know getting more properties will pay off in the long run. I am not worried about paying $240 a month to keep this property. I am just curious to hear what experienced househackers have done in situations like this if they have ever encountered them. Should I refinance and buy another property? I have about $30k saved up for a down payment. Or should I sell the property so that I can avoid negative cash flow?

ANYTHING HELPS.

Thank you so much!

Jayden