Should I sell or rent

4 Replies

Hello everyone, I purchase my first property back in 2015, as of today I have 100k in equity. I am truly interested in investing and need to know what the best move I should make. If I rent the property after mortgage, insurance and HoA, I will still be left with $300 cash flow... My goal is the have multiple properties, own multi-units and hopefully apartment buildings. I’m been a realtor for 5 years and have sold homes here and there while working my full time job. It’s been a week since I left my job of 11 years as a Marketing manager to pursue real estate full time... I’m scared if I take the cash flow and don’t have a plan I will end up using the funds, since I no longer have a paycheck coming every 2 weeks anymore. I also feel like I should sell and buy something small in northern Florida and rent it out... Can anyone give me a suggestion? I have several ideas in mind but have no idea where to start, Im also looking for investor and anyone that would like to invest in Florida. I’m open to a joint venture. I’m trying to cover all aspect in Real estate, next week I’m schedule to take the National MLO exam next week. Trust me I will pass. Can anyone give me a suggestion?

Having only accounted for mortgage, insurance and HOA you will never have positive cash flow from this property as a long term hold. You have neglected to account for all other operating costs associated with a rental property. In addition your 100K in equity is costing you at least $416/month in lost income based on a oportunity value or 10% and a mortggae interest rate at 5%.

There is no way you should be holding this property as a income investment. The numbers simply will never work out positive.


Now that you have left your previous job, how do you plan to finance the properties you wish to acquire? 

$100K Is too much to have wrapped up in a property with no cash flow. Thomas S. is correct that you haven't accounted for maintenance, tax increases, and other variables. And even if you do get $300/month that's not a very good return on your money. I know some investors have a business plan to hold and make money on tax savings, appreciation, and debt reduction, but you said your goal is to have multiple properties, so unless you have a lot of cash I don't see how you could accomplish that without better leverage.

I left my day job, to pursue Real estate sales, and mortgage lending full time. Hopefully once I master that I should be able to prove to the banks I’m able afford financing on there properties...

I am definitely leaning towards selling, I was thinking I can purchase something with in norther florid our out of state with the profit I make. Is that a good idea?

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