$350K investment in real estate
I bought a rental property(single-family house) in Oregon for $350K cash and placed it on rent for $1850 per month. I pay $185/month in HOA and $9000/year in property taxes. I had to make a quick decision with buying this property, due to a life event change at that time(divorce, 1031 exchange etc.). However, now that the dust from my life transitions has settled a bit, I am wondering if it is better if I invest my $350K in multiple properties (or at least more than one) instead of putting it all in one. This will mean I may have to take on a loan, though. I am new at investing. What do you experts think?
P.S. I have a full-time job and cannot spend much time managing the properties, looking for a passive investment scenario
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After doing some quick math on the property, I see that the property is cash flowing for you only because you bought it for cash. After maintenance, property management, insurance, and anything else you need to fit into the expense column, the cash flow on the property is very low. Would you say you get $600/mo after all that? Yes, you'll get other benefits such as depreciation and appreciation, but for something that is close to a 2 cap is pretty low. So yes, get rid of it if you can and hopefully the market is good enough to gain a bit off of it, although with a renter it will be difficult and someone else maybe seeing what you have done it won't be too enticing.
I'm not sure you could get a loan on it and cash out making the property worth it at that point because the returns are already so low on it. But, once you have the money back, consider how you're going to use it better and like someone else, you could put it into a syndication in a passive way and get value out of. You're free to setup a call with me to discuss how we're moving forward right now.