I am a newbie real estate investor in the city of Detroit. I just purchased two properties within the last couple of months. One of my properties already has renters. The other one someone is living there and I cannot put them out until I receive the deed in the mail. However I am looking for more ways to buy more properties without using my money. So I wanted to know if it would be a good idea to sell my second property (after renovations) and to use that money to purchase more properties. Or use a hard money loan to purchase more properties?
Hi @TyWonda Fudge ! Something that has impressed me with how frequently I hear investors who have been in the game a long time say is something like this: "My biggest regret throughout the years is selling the homes I sold."
There are a lot of different situations that you may be in right now and that will inform which answer is best for your current scenario, but owning real estate will likely accomplish more of your long-term goals than selling (i.e. no longer owning it). Selling gives you cash now, which can be deployed into different uses and may be ideal. It also gives you a tax liability now. Owning gives you appreciation, tax advantage, and the ability to refinance and deploy money to different things over time WHILE maintaining those benefits.
So, I'd say if you NEED the money to be stable or safe right now then sell, but if you can be well without selling, then keep it as long as you can if it works with your goals.
It depends on your goals @TyWonda Fudge . If you want to build a portfolio keep it and go with leverage. You can also go the refi route
@Will Fraser thank you for your reply. You provided me with something to think about. My overall goal is to build my portfolio to create a monthly cash flow. However I do not want for it to take years for me to do that. So I gotta a lot of figuring out to do!
@Odie Ayaga are you referring to the BRRR method?
I would say hold & do the hard money. Totally agree with @Will Fraser . I always hear investors regretting selling inventory. I myself have experienced this regret at times, but selling the right property, at the right time has also benefited me, depending on the situation. But for you, just starting out, I’d say hold on to as many properties as you can while scaling up.
@TyWonda Fudge . I’m here in the city as well. I would think about selling. As a Realtor/investor I know you could possibly buy 2 or 3 houses depending on how much you clear from the sale. Good luck
@Odie Ayaga thanks! I just ordered the BRRR book, hopefully it will provide all the information I need to make a wise decision. How you used this method before?
@Sarah Williams thanks for your advice! The goal is to grow my portfolio!
@Gary Carver is there a particular area that you prefer to invest? Thanks for your comment! I figured selling would help me to acquire more properties at a faster rate.
@TyWonda Fudge I have not I'm not in buy and hold at this time
@TyWonda Fudge . My main areas are University District, Bagley, East English
@Gary Carver those are nice areas. Do you attend any of the REI networking events? If so, could you list the events & dates. I'm looking to connect w/ more ppl in the area.
@TyWonda Fudge . Yes I attend Detroit Renegade Investors. It’s held at Shields Pizza in Southfield on Telegraph. Next one is Dec 3rd @ 6pm
@TyWonda Fudge hey there. I think you should talk to an agent and a lender to weigh your options. Hard money is expensive and so are evictions so be careful. I sent you a message to discuss more!
@Salliece McCain thank you!