80/20 ARM Loan $0 down High Rates 20 yr old investor, Am I Screwed?

I am 20 years old from washington, I managed to get a loan and buy a duplex w/$ 0 down 80/20 Arm loan 80@7.5% 115,000 and 20@11.5 32,000 Yes rates are very high but w/ 0 down and no assets I had to take what I was given. I will be paying interest for the first 2 years and I have no extra money to pay extra on top of my minimum payment. I am losing $ . I rent out both units@$ 1125 + $ 115 water +75 add to mortgage payment so I’m losing $ 190 a month, I cannot raise rent it’s already up there. I cannot refi for atleast 2 years or I have to pay 3600 penalty fee. I bought the duplex for 147,600 (including closing costs). It’s been appraised at only 148,000 so I bought it at top dollar. Should I pay $ 3600 penalty and refi to get positive cashflow? Or just hold it up for 2 years and lose 200*24=$ 4800+maintenance fee’s in 2 years? Any other suggestions I would appreciate it. Thanks in Advance!
This is suppose to be my “primary resedential property” and I’m suppose to be living there but I am not but no one knows. I cannot make tenants pay water, sewer, garbage. Rents are already up there although I can raise one unit to 600 instead of 525. Still be negative cashflow. I don’t want to move in the duplex myself because then I would have to pay more right now I am paying 450 a NICE place and a wonderful landlord I don’t want to move out of here, plus it’s cheaper then living in my own duplex. Saved me over 150 a month. So what is waiting for me in the future? Wealth? Or disaster? Equity is slowly building, here in Spokane the market is consistant not too slow but not too rapid. My credit score I’m sure is doing great so what should I do hold on or refi and pay penalty? I would appreciate some good suggestions. Thanx in advnace! God Bless!

Register New Account
Reset Password