I've depreciated it over the years so it's been a good investment for tax purposes and we've also leveraged it previously to purchase another rental before we refinanced it in 2021 at 3%.  

At 6% appreciation, which I think is reasonable in this neighborhood, IRR moves to 25%.Option 4) Hold on to all properties by saving $3k/month of W2 income and refinancing in a few years if interest rates decline -- Pros: Maintains entire portfolio.

Property 2 has a chance to get refinanced out and cover the overage on property 1 if the numbers work.Are there any other clouds on title?

Here are some tips and insights to consider as you begin building your real estate portfolio:Options:Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.Investment Loans: Explore options like conventional loans for financing future rental properties.HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.Build a Financial Strategy:Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.Emergency Fund: Set aside funds for unexpected repairs or vacancies.Research the Rental Market:Location: Choose rental properties in areas with strong rental demand and potential for appreciation.Tenant Profile: Understand the demographics and preferences of renters in your target market.Market Trends: Stay updated on rental market trends and local regulations affecting landlords.Property Management:Self-Management vs.

@Grayson GrzybowskiI recommend checking out the BRRRR calculator. https://www.biggerpockets.com/brrrr-calculatorThis will show you the key metrics before and after refinancing a property.

I can help you explore refinancing options in the future to lower your interest rate, especially if market conditions improve.Living in the property for 18 months while renting a room can help you offset mortgage payments and reduce living expenses.This strategy also gives you time to understand the local rental market and plan for full rental income after you move out.Fixed-Rate vs.

If it’s coming due soon, refinancing could be tough.

I would also say that while refinancing could improve cash flow, it's speculative, so you would want to ensure you have a solid strategy in place to manage the negative cash flow.

Everything costs more than you think it will, takes longer than you think it will, and exit strategies of selling or refinancing are a bit more complex and difficult than strangers on the internet make it seem.

Given your situation, you might want to explore refinancing options or a home equity loan to cover the renovation costs.