Big Decision - need your serious input...
I own a 15 unit apartment building. What happened was our market soared over the last couple of years. Now the apartment is worth double what I paid for it. So I have a ton of dead equity sitting in that building.
My plan would be to sell the building. At market value I should be able to get about 1.5m for it. Then I could payout the first mortgage leaving me with about 900k. With that I could take the money and buy a much larger property out east where realestate is still cheap. I calculated that out east I could buy a building that would be cash flowing at around 3times the rate of what I'm getting right now, possibly more. Really this would make the most sense but I thought I'd get your input on it.
Good idea? Bad idea? Any thoughts?...
Because I hate to sell but I feel like I'd be foolish not to cash in on that dead equity. Like there's about 900k of it just sitting there not making me anymore money.
How much real estate can you buy with 900k without moving? Unless you really want to move of course. where are you from anyhow? Cali?
you can also take a look at your goals if you have written them down and see which road will take you to your goals.
if it were me i'd look into expanding where i am currently located before moving to another market. Seems like you'll have cash for the down payment with the equity already so why not stay where you are?
if you feel prices have gotten too high and are holding you back from being the investor you would like to be. Them move to a different market but do your research on where you move to.
Why not keep your existing investment and leverage it (through a cross collateralization) to invest in another?
A cash out refi, bridge loan or a program that allows for cross collaterization would provide the seed capital for the new investment.
This makes sense if your perception of increased value is supported by the cash flow to support the new indebtness.
Regards,
Scott Miller
I looked into refinancing. They said they'd give 85k. What a joke. That 900k I can unlock will buy me 9m worth of property out east. I just created a package for the property. And I talked to one commercial realtor about it today. I think I'm just gonna do it. I think long term it will be good.
Why does this sound familar to me?
Originally posted by "r2d246":
I looked into refinancing. They said they'd give 85k. What a joke. That 900k I can unlock will buy me 9m worth of property out east. I just created a package for the property. And I talked to one commercial realtor about it today. I think I'm just gonna do it. I think long term it will be good.
I think I might just sell it. Probably the best option at this point even though I don't like selling.