Should you keep, refinance, or sell your rental property? If you’re sitting on a low mortgage rate and plenty of equity, you’ve probably asked yourself this once or twice within the past year. Most people who bought a rental property before 2020 have seen unprecedented appreciation and rock-bottom interest rates and are likely sitting on a war chest-sized home equity position. But that equity could be better spent investing in new properties than keeping your old ones.

This is Dave’s exact predicament. He’s got a property he bought back in 2016 that has over $300,000 in home equity. It’s cash flowing a solid $500 per month with a mortgage rate of just under four percent, but only producing a measly two percent cash-on-cash return. He’s getting four times the return on his recent investment property purchases, so should he sell? Not so fast; we’re doing the math to figure out whether he should keep, refinance, sell, or change strategies on this property.

Got the same good problem? Stick around as we even drop a fifth option most investors overlook entirely, which gives you the best of both worlds.

In This Episode We Cover:

Whether to keep, refinance, or sell a low-performing rental property

The obvious problem with cash-out refinancing in 2024/2025

Why we DON’T love doing 1031 exchanges (and a tax-advantaged way around them)

Converting your long-term rental into a medium or short-term rental (MORE cash flow!)

How to access home equity WITHOUT refinancing your property or getting a new loan

And So Much More!

Links from the Show

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Grab Dave’s Latest Book, “Start with Strategy”

Get a Quote on Your Next Short-Term Rental Loan with Host Financial

Find Investor-Friendly Lenders

Keep or Sell? What to Do When Your Rental Doesn’t Cash Flow

Connect with Henry

Connect with Dave

(00:00) Intro

(01:20) Property Details

(04:51) 1. Keep the Property

(07:12) 2. Refinance the Property

(10:29) 3. Sell the Property

(17:12) 4. Convert Into a Mid-Term Rental?

(21:10) The Best Option?

(22:24) 5. Use Home Equity Instead

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1055

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061 Crónicas de una crisis - Ineptitud pública vs egoísmo privado