I need some help. I have had 4 properties - I bought my first one in 2006. I never thought about them much and definitely didn't put much time in real estate, but now I am realizing that this could be a great future and these 4 houses could make a huge difference in what I do in the future. BUT!!!! I have tried to calculate the numbers on the houses that I have... the two that I have done, are bringing in about $150 in take home and about 5.5% ROI. I am kind of wondering what I should do with the homes I have (with my husband) and what I need to do going forward. Any help would be very helpful!

-Katie

Originally posted by @Katie Lea :

I need some help. I have had 4 properties - I bought my first one in 2006. I never thought about them much and definitely didn't put much time in real estate, but now I am realizing that this could be a great future and these 4 houses could make a huge difference in what I do in the future. BUT!!!! I have tried to calculate the numbers on the houses that I have... the two that I have done, are bringing in about $150 in take home and about 5.5% ROI. I am kind of wondering what I should do with the homes I have (with my husband) and what I need to do going forward. Any help would be very helpful!

-Katie

 Since we don't know the particulars it's a little hard to guess, but using a spreadsheet with examples can give you some ideas:

https://www.biggerpockets.com/forums/311/topics/678938-how-i-buy-houses-for-pennies-on-the-dollar

Average Cash Flow

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

Thanks Mike!  This may help!  It brings up another situation...do I just sell them all and start again - and where?  Zachary, LA, which is where I live has grown and grown.  I think it is getting too big for the small town it is and the amount of new builds is growing by the day.  BUT if I start again and I don't want to stay in Zachary, where do I go?  I see you are from AZ - so many areas!  How do I even work on this?

Account Closed, I really tried to follow this, but am struggling with the partnership deal that you have with the Average Cash Flow forum.  There seem to be a lot of numbers that I need to learn and I am VERY confused by all of them now.  Where should I go to get information on how to work the numbers?  Do you recommend a book?

Originally posted by @Katie Lea :

@Mike M., I really tried to follow this, but am struggling with the partnership deal that you have with the Average Cash Flow forum.  There seem to be a lot of numbers that I need to learn and I am VERY confused by all of them now.  Where should I go to get information on how to work the numbers?  Do you recommend a book?

 Right. There is some learning to do but it comes along in time.

I'd probably invest in Baton Rouge if I was to invest in the area. Big enough city to get decent rents, employment is good and over time more likely to appreciate. You don't say what you and your husband's goals are so it makes it tough to guess what direction to point you. You can PM me if you want more direction.

Hi Katie, I've seen some of your recent posts on the Baton Rouge REIA/THE RING meetup site.

My recommendation is that you take your time and focus on learning some of the strategies before making any drastic changes like selling and starting over.  There are a lot of factors that make the time and process of selling advantageous or not. Namely the tax consequences can be significant.  Deciding what’s the right next move and when, will depend largely on the rest of your personal financial picture.  Only your personal tax and estate advisors know your situation well enough to offer meaningful advice on these matters.

If they are making money, keep them.  The only reason to sell a house would be if it wasn't making money AND you have another place to buy that will make money.  Remember there are costs with selling-realtor's fees, taxes, etc and then the vacancy and costs of buying a new place.

 @Robert Leonard  and @Theresa Harris thanks for the advice.  Yes...I'm definitely trying to take my time and chill out, but it is so much fun to do!  I love really - what I consider - playing - with real estate and thinking about everything I could do with it.  I don't really plan on selling all of the houses and starting over and thanks to the appreciation that has happened in Zachary, I don't really need to.  I just wish they were making more money for us.  I know we are going to be looking for another property soon, but I want to continue to learn and invest the way I should versus the way that I have in the past.  Thanks again for the advice!

They are also making money for you in terms of paying off your mortgage, cash flowing $150 a month and in your case appreciation.

Remember when looking at averages, that they are misleading.  You can make 1% off a rental, but that number is very different if you look at $ amounts since 1% could be $300 on a $30K house or $3000 on a $300K house.