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Updated over 11 years ago on . Most recent reply

User Stats

64
Posts
31
Votes
Rich Cee
  • Investor
  • Cape Coral, FL
31
Votes |
64
Posts

Sell before it hits the fan?

Rich Cee
  • Investor
  • Cape Coral, FL
Posted

I purchased a SFR near a military base in Georgia. Purchased it for 90k and put 6k to bring it up to snuff and comps are funny due to its sqft (1251). I was told by the realtor that I may have an ARV of 120-130k. Comps for the sqft are just barely above 90k but they are old, beat up homes or even mobile homes. This house was built in 2010 in a new subdivision near the base and new construction is popping up through my town. With this all in mind, here lays the problem.

1) The government is drawing down on it's Department of Defense personnel numbers meaning jobs cuts for the next 6-10 years. A "worst case scenario" report was published last week claiming a potential 3/4 cut in personnel at this base meaning less jobs, less military rentals and possibly tanking in that market which evolves around the military. Worst case is very slim but even it it were to cut jobs by 20%, wouldn't that still wreck the market there?

2) After bringing this article up to my realtor, she adds that their is rumor that FEMA might turn the area into a flood zone. She told the builder of that subdivision this and he claims that they are full of it and he has engineering specs showing that the homes were built higher than the "flood prone" level.

With this all being said, I may be jumping the gun, but do not like the week I just had hearing this news. I have served in 2 war zones to save money and would be crushed if it was flushed down the drain. I have an excellent tenant and draw double of my mortgage (1/3 down payment). I wish to continue investing mainly in long term rentals and this news doesn't seems like a good foot in the door. What do you guys/gals think? I love this site and value all opinions…..Thank you!

Most Popular Reply

User Stats

385
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702
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Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

Excellent question I'll do my best to help. You have a good situation going, iI wouldn't change anything. Your property is cash flowing nicely. With a long term rental talking ten years or more I'm assuming your doing this for long term wealth. Would you really care if property values dipped slightly? Appreciation is always nice but if the area rents are 1/3 higher than your mortgage. Even if they dip slightly you will still have a nice cash flowing property.

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