Hi everyone,
I am really stoked about this site it has helped me a lot to open my mind so know I would like some advise from the people here.
I did my first deal without much kwnoleadge (apart form buying cheap)but know I want to really get into deals and become an active investor.
A little of background, I am from a very stable country in South America (where I plan to keep investing) and currently live in Hawaii married to an American I am only 27.
Here is what I did:
I bought a 1B 1B apartment in the financial district of the capital city in SA to the family of a guy who died so I got a good price (US$62,000). The market price of the propery is around US$70,000. At the time it made really good sence as I lived in the place and I did not want to pay someone else mortgage.
My down payment was 16% (US$10,000) and I took a mortgage for 15 years which give me payments of US$420. Now that I rent it out I get $364. Taxes, ins, etc,are $60.
I am cash flowing negativly in my current 15 years mortgage.
I could refinance to a 30 year mortgage and have a little monthly positive cash flow or should I sell and look for other markets…
Numbers:
Purchasing price$62,000
Closing costs $2,800
Downpayment 16% ($10,000)
Rent roll $364mth
current mortgage 15 years $420mth
tax, insurance, etc.$60mth
Estimated new mortgage 30 years $300
Estimated sale price 70,000
So the question is should I refinance, should I just keep as it is or should I sell?
Personally I dont mind the small negative cash flow, but that restrict me in making more deals and I get less leverage, and I have to keep on being an employee!!!.. If I sell I can capitalize a gain but it seems that the area where the property is will contantly be adding in value so if I sell later I could capitalize a bigger gain (as long as I stop cash flowing negativly)…
There is not tax issues as there is no capital gains in properties in my country.
Any help wouldbe great as I want to keep investing and utilizing the advantage of knowing both countries.
Rafael