Should I refinance my rental?

[LickTheGovtBoot]

Current Details:
Original mortgage = $116,000 @ 5.875 for 30 year fixed
Cash flow negative by $25 / month
Rent = $925
Mortgage payment PI = $709.00
Taxes, Insurance, HOA = $231.00
Purchased in 2004
Property will not appraise for more than $100,000
Current principal balance is $100,000

Refi details:
15 year note @ 3.875
Must bring $25,000 to closing plus fees to meet refi requirements
New mortgage PI = $540
So now cash flowing approx. $150 per month

What would you mustachians recommend?  Do I do it or not?

[arebelspy]

If I ignore some of your calculations that make me twitch, the simple math says going from -25/mo to 150/mo (so a switch of 175/mo) is 2100 annually, out of 25k invested = 8.4% return.  Most would be pretty happy with that.

I'd probably be looking to sell the property, personally, and if you really want a rental put the 25k down on a new property that is better than $925 rent for 100k, but that's a decision that needs more information (location, goals, etc.).