I found a lot of great information on the podcasts how to find deals but there is no info on how to decide to get out of a rental property.
My wife and I started our real estate investing career in not the best way. We own two properties in Austin, Texas. The first property my wife bought with a friend prior to our marriage they could live in as a primary residence and I eventually moved in. Then after a couple of years of dating we decided to buy our own house and the other house was turned into a rental. After a year we decided to move to Phoenix. This was in 2008 and the market was on a downturn. So we decided to turn that house into a rental also.
So the 1st property is 30 years old and is falling apart. The property is bringing negative cashflow. So my question is how to analyze if a current property is still a good investment or we should get out. Are there ways I could restructure the loan to get positive cash flow? The market is doing really well and we could sell as-is and pull out the equity to use on a new deal. The partner wants to sell and my wife does too but I am not so sure. I don’t know if we should buy him out. Do I just want to keep it because I want to be a real estate investor? Please any help is welcome.
If it’s losing money then sell it and use the money to buy something with positive cash flow. You could 1031 if you’ve been using it as rental.
What’s it worth compared to what they bought for?
Comps in the area are $250K but it would need a lot of work. They received a cash offer of $190K and they want to take it because they don’t want to put in the work to rehab it. It would give them about $80K in equity.
Thanks for the help.
What part of Austin is this property located? I just sent you a PM. I have done some fix and flips in Austin and I will be happy to help if you need boots on the ground.
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