Should I sell and move on? Help or send SOS :)
Ok BP followers, here's my dilemma...
I own 1 duplex in a prime neighborhood that is appraised around $450,000. I financed well at 3.75 no MI so my payment is $2075 with a balance of $310,000 remaining on the loan. I take in $2,700 in rental income, but after utilities my net cashflow each month is $400. It's a beautiful turn of the century duplex that I renovated when I purchased and lived in one of the units then renovated a single family which I later sold. My main question is do I ride this out for the long haul, or cut bait and move on? The average duplex in my area sells for around $400,000-$500,000. The house is old, the Winters are long, and I'm tired of the leaks and squeaks and though I love the house, all I can see is dollar signs for repairs in the near future because I'm OCD about everything! Anything will help. Here are a few photos of the place if that helps.
#3 Managing Your Property Contributor
What would you do with the money from the sale? I agree with those that suggest having the tenants pay the utilities.
Originally posted by @Jeb Brilliant:
Originally posted by @Priya Thomas:You should sell it and invest in less expensive markets like Cincinnati, Indianapolis, Kansas etc., a 100K equity can bring you as much as 5-8k gross/month in some of this markets.
Hi Priya where can I get $5k-$8k gross/month? Maybe I'm missing something but I have been investing in Indy for years now and have never seen anything like that. I sincerely am curious. DM me if you prefer.
Thanks!
Hi @jeb Brilliant,
When I say a 100K can bring in 5k in cashflow, i mean 100K equity can buy as much as $500k worth of properties. There are banks in Cincinnati who provide portfolio loan for 20% down, 25-30 yr amortization.
Is it easy? NO. Is it possible? Yes, absolutely. Certainly you don't get such deals every day in MLS, sometimes you may see mis-quoted / mis-caluclated deals on MLS. Buy 70 cents on a dollar, hold it for a year, refinance, go and buy next set of properties. Again, it isn't easy, if it is easy everyone will be doing it right? You have to be patient, get a good agent, keep searching through mls, keep looking for deals.
Again, key is buy on 70 cents or less a dollar, look for value add opportunities, don't over pay. Don't get ripped off by unethical turnkey providers, wholesalers.
