What Would BP'ers Do?

What Would BP'ers Do?

Investor · Fort Worth, TX · Member since 2016 · 4 posts · 0 votes

Looking for input on my little dilemma.

Facts:

-After last house hack flip, we bought a small builder home with the intention of keeping it as a long term rental after we lived in it while searching for the next project.  We've lived in it for 3 years now, (have a 3 year old) and now I'm questioning my original strategy due to development in the area and because its appreciated fairly substantially while we've lived in it.

-bought for 180K

-conservative value today 250K (potential net from sale - 50K)

-conservative potential rent - 2000 / mo (potential net monthly cashflow - $800 /mo

-currently a small pocket neighborhood with no through streets that feeds into a great elementary school and good middle-high school 

"Problems:"

-our street, currently a dead end is about to become a through street that will become a major shortcut for another 300 or so house development to our West to get to the highway and the grocery store. It will trim about a mile off the current shortcut out the back of their neighborhood.

-A new 300 unit apartment complex is in the planning stage just to our north east

-major development is going on to the south which could potentially cause our neighborhood to get rezoned to a less desirable elementary school

Dilemma:

We bought for cash flow but have been lucky to have pretty substantial appreciation that we could take advantage of tax free since we've owned it and lived in it for more than 2 years.  There's several potential threats to the neighborhood and particularly our street but I'm not sure how much they would affect the rentability.  

Should we cash out now and move on to something else or hang on to this and ride the cashflow wave?  We don't need the cash for other deals that we're looking at right now but I'm just not sure what to do.  Tax free profit is sounding pretty good but that's obviously a 1 time thing and we already have cash sitting on the sidelines waiting for the next project.

Thoughts and ideas would be much appreciated.

0Reply
20 views

3 Replies

Jump to latestLatest
  • Realtor · San Francisco, CA · Member since 2017 · 408 posts · 361 votes
    8y

    Whats your overall goal? And does this option fit in or conflict with your personal end game?

  • Investor · Fort Worth, TX · Member since 2016 · 4 posts · 0 votes
    8y

    My overall goal is to develop a secondary income stream via real estate, not necessarily through residential RE though.  If I were to cash out of this one, I would work on finding another property to buy and cashflow.

  • Investor · Fort Worth, TX · Member since 2016 · 4 posts · 0 votes
    8y
    Just not sure whether I’m overreacting to these perceived threats to the neighborhood and street.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.