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Updated about 2 years ago on . Most recent reply

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20
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Jaren Taylor
2
Votes |
20
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Appears to be a bad investment.

Jaren Taylor
Posted

Hey BP! Got yet another obstacle, a subject worthy of discussion! I've made an investment in Menifee, CA. A single family long term hold in the hopes of this city growing with amazing returns in terms of appreciation(cash flow negative however). To date, I have not owned the property but a year and when researching about the city, I am starting to see poor metrics about the performance of the city in the recent year or two. It is a negative cash flow property, and the metrics within the last year seem to be poor. I think it would be safe to say that this was a bad investment and hemorrhaging monthly cashflow to supplement the mortgage would be a poor idea in the long run. But I do submit to the fact of not knowing everything about real estate and wonder if I need to consider anything else before venturing into the idea of selling off this loss(would be my first sell). Like always thank you guys in advance!

Most Popular Reply

Account Closed
  • Columbus, OH
255
Votes |
427
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Account Closed
  • Columbus, OH
Replied

Depends largely on how big that mortgage payment is and just how much you're losing. Whether or not this amount is affecting your quality of life or long-term financial goals is a big factor as to whether you should sell or not. Also, when buying a long-term hold, you should prepare to buckle up and hold. It has only been a year, but I don't know just how poor these metrics are, so it's hard to advise selling or holding. Is the property vacant?

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