Wondering What To Do With 1st Property????
I am a noob so please bear with me
I purchased my first property about 6 months ago <IMG SRC="images/forum/smilies/icon_biggrin.gif"> I put 5% down, and it was fairly undervauled at the time when I did the deal. Its a 2 family 2/1, I live in the 2 bedroom, and rent the 1bedroom for approx 60% of the cost of the mortgage. I have done quite a bit of work to it, paint, carpet, light fixtures etc.... I am getting kind of anxious/bored with the place, and want to do another deal. From speaking with RE agents, and an appraiser the place is probably worth approx 45K more than what I payed for it.
I'm wondering if I should refinance, hope to eliminate PMI, and then rent the 2 bedroom out for probably $400-500 positive cash flow?
or
refinance, pull out the equity to fund the next deal, pay PMI, and then rent out the 2 bedroom
or
Should I try to sell for a profit and roll it into the next deal?
Thanks[ Edited by HKS on Date 11/25/2003 ]
Find a lender that won't charge PMI on a 90% LTV. I got one for my refi so ask around.
I would take out as much as I can and avoid PMI as much as possible and work on finding other deals while renting out the duplex.
JMO...