All Forum Posts by: Erin Schreiber

@Joel B. Thanks. Fortunately, I won’t need to use cash out to pay him off, since he’s getting control/equity of a different house. I just have to do something to get his name off the mortgage.

I guess I was thinking I’m supposed to calculate cap rate so I can compare it to whether I’d do better reinvesting elsewhere. But maybe that’s just the number to use before an initial purchase. And in this case, any potentially better cap rate is outweighed by capital gains expense.

And if I do refi, I’ll be able to make other investments with that cash out. Which will be nice, since it’s all been frozen 2.5 years.

Thanks, @Ziad Hamati. That’s comforting to hear, because refi is certainly my instinct. I question myself because there’s so much buzz about this being “the time” to sell. But it’s a good rental, for sure.

I have to either refinance or sell a duplex in the next 6 months as part of divorce proceedings. Currently, it is rented under market value, grossing $2700/mo total , with a monthly mortgage payment of $1561, and me paying utilities around $500. I could raise the rent to probably $3100/mo total. I could pay about $6000 to have a second electric meter installed, so the tenants would be responsible for utilities. 

I’d guess the property value right now is above $450,000, and I currently owe $150,000.
I’d hate having to pay capital gains on a sale, so I’m leaning toward just refinancing. Is there a specific tool I should use to make this analysis? Or a rule of thumb I should lean on? Or additional info I could provide here to get recommendations?