Investor · Bowie, MD · Member since 2015 · 114 posts · 36 votes
BP! It's me again,
I have a rental in rural King George, VA. My tenant currently wants to move out early due to some hardships. We've tentatively agreed for her move out date to be in August so I can begin advertising now.
I'd like to get more involved in Real Estate investing. My house has about $200K left on the loan and maybe $40-60K in equity not including closing costs. I moved out of the home back in Sept 2015 and it rented in December of 2015. I've owned it since 2012.
Is my rental worth more to me as a rental/leveraging asset? Or should I take the potential cash, build up my savings and try and re-invest the rest? The home was purchased on a no money down loan as a starter home, so there isn't a lot of room in cash flow currently (~$200 after mortgage and titlhes). I think I could get $100 or more in rent at least if I put it back on the market.
as long as you have cash reserves to cover repairs that could be a decent first rental. You have almost no money in the deal so cash on cash return is infinite.
Good old King George. Is it your only rental? Personally I find it best to sell off your worst performers and try to find better.
Are you near the base, or at least 20 minutes from it? The base his really picking up a lot of out of state renters right now, so you may be able to pickup a much better renter using Zillow and earn a little more cash.