Real Estate Agent · Portland, OR · Member since 2018 · 23 posts · 7 votes
My plan for several years has been to buy owner occ propreties and convert them to rentals when I move to the next. After finding BP i'm not sure that makes sense.
I bought my newest home Sept 2017 with 3% down... paid for some repairs with cash for a total of $20k. Sunk cost.
Now it appears I could sell and net $30k or rent and MAYBE cash flow $50-100/mo. That factors in no budgeting for capital expenditures.
I want rentals and i know rents will go up so I hate the idea of selling... but am I looking at this wrong?
House was built in 2015 so it's fairly new. I am in Portland and i'm learning it's hard to find propreties that cash flow nicely. Thank you!
As a rental investment it is not worth the risk or work load based on you having negative cash flow unless you are in a high appreciation market and willing to gamble.
SFHs make for poor income property investments and are primarily a appreciation play. If you want cash flow you have to buy it in advance with your own cash by paying down the mortgage. Not really an investment more like a forced savings plan.
There is no logic in not wanting to sell a bad investment. I would definatly be selling.
Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
8y
If it will only produce $50-100 not accounting for cap-ex then it’s not going to cash flow. You probably don’t want to have $25k + or - tied up in a non-cashflowing rental. I’d recommend that you sell this and use the proceeds toward a property that you buy strictly as an investment where the numbers work or as a down payment on a house hack.