All Forum Posts by: Michael Babb

The loan was an ARM that adjusted, unfortunately.

Welcome Ryan!  I have invested in rental property in Colorado Springs for more than 10 years and would love to share ideas with you.  What was it that convinced you that this is something you wanted to pursue as an investment starategy?   

I currently own a few rental properties in the Colorado Springs, CO area, but have one in particular that I could use some advice on and how I should move forward.

The short story is, I purchased this home in 2006 when everyone was purchasing homes right before the market collapse and got one of "them fancy interest only loans" :)  This is my one regret with regard to real estate investing and all other homes have a fixed interest rate that can be planned around.  The loan stayed pretty steady for a while and I was making some good monthly cash flow.  However, the loan has moved from an interest only loan into a loan with a higher interest rate than the industry average and my cash flow has dwindled to almost nothing.

My question is, do I refinance and pay for the additive costs of doing so or do I sell while the market is still good and move on to something else?  I hate thinking about losing an asset, but I just wonder what would be the best way forward? 

Thanks @Jill DeWit

Hello!  Although the subject line states that I am a Real Estate Agent from Colorado (which I am), my full time gig is working within the Department of Defense as a Financial Analyst.  More than 10 years ago, my wife and I became accidental landlords and found ourselves with an unwanted rental property.  Fast forward 10 years and we have (intentionally) replicated that process and now have 4 properties and would to expand our investments further.  In an effort to do that, we decided to get our real estate licenses, educate ourselves and read a lot on the topic of real estate investing.  We are not pros and we are not fully versed in this topic, but we are determined to make a "GO" of things and see if we can add to our portfolio. 

I look ward to meeting some people through this website that can give us some pointers through our journey and I hope to be able to add value to others where I am able. 

Feel free to drop a note to say Hi o questions as you feel inclined.  I look forward to the conversation!

Michael