Refinancing at 7.9% shows the stupidity.
That’s what I was thinking for sure!
This person is NOT a bottom line business person and should probably watch more Shark Tank, pausing to run the numbers they do on the fly in their heads.
He should be optimistic and hold on until things get better. There’s still a lot of equity to lose.
Meanwhile he continues to drop $1000 a month covering that ridiculous note. Win/win right?
Had rentals and didn’t care too much if they made much,, but they had to cover expenses. Always. Did very well off that model. The money was made with the initial purchase and gentrification.
Uh, next time try running the numbers first. I’ve found that tends to work best. Business 101.
yep, taking $100,000 out and uping the interest 50% was not a smart move.
Owner should have just done a heloc and only paid 7% on what he took out and not refinanced whole amount