Long-term, look into refinancing once property values increase to lower your interest rate or pull equity for your next investment.Good luck!

My name is Ashley Kroft and my mother-in-law has a property in El Paso, TX that will be refinanced soon to purchase my husband and I's first rental property.

I've been doing some light reading, and it sounds like refinancing that property and using the proceeds to reinvest elsewhere might be a better option. 

Quote from @Jules Aton: When I did a seller finance deal years ago on what would become a long term rental I bankrolled the rehab funds then re-financed when it was finished.

I can’t give condos away and many investors are under water as they either re-financed, took out a reverse mortgage or had non/paying tenants carried over from the COVID moratorium.  

Since your property has high resale potential, some lenders may be willing to work with you.Cash-Out Refinance – If you’re open to refinancing, you could take out a new mortgage for a portion of the home’s value (say, 60-70% of the $500K), and use the cash difference for renovations.Personal Loan – If you have good credit, you might qualify for a personal loan for part of the rehab costs, though interest rates are typically higher than secured loans.Partner with an Investor – Given the potential profit, you may be able to find a real estate investor or contractor willing to finance the rehab in exchange for a share of the profits upon sale.Your best option depends on your financial standing, timeline, and risk tolerance.

Since renting or refinancing won’t work, your decision comes down to how much you’re willing to lose in the meantime versus the potential for a market rebound.

I have clients though that I fund that have built some incredible portfolios. 2 of them over 250 SFRs that I funded for them and they refinanced and paid me off..

Also, what is the preferred credit score when refinancing does it matter?

You'll likely also reduce your cost of living by moving to a stabilized apartment.Depending on the cashflow and debt paydown, you can use this strategy until you've built enough equity to reinvest.On the other hand, getting into a multi-family after refinancing will also help you build substantial equity to rinse and repeat in the coming years.