I have the WORST investment condo ever. I lose money on it every month. Anybody with any financial sense has advised me to sell this for the past 5 years, but I didn't and I am committed to keeping it for at least 2 more years. Unfortunately, I never refinanced from an adjustable 7/1 ARM because I kept thinking I'd sell. Now the rate has adjusted to just over 5%.
If I refinance an investment property, isn't my aim just to get the monthly payments as low as possible so that rent covers the expenses? Do I care about ever paying this off if it's just a rental? I'm asking because I'm getting rate quotes for both 15 and 30 year loans, and it just dawned on me that there may not be any advantage to paying this off in 15 years and it might actually benefit my circumstances to extend the loan back to another 30 year term.
Some things that may matter:
Currently cash flow negative (about $450 each month)
Income disqualifies me from reporting a loss, but I carry the loss and it is changing my basis (I think)