FNG from Texas

[Nate Gensler]

Hey BP folks

I'm Nate and I live in Lubbock, TX. I'm a teacher/coach at one of the local high schools. I love working with kids and love my job. So, I'm not looking to get out and start a career in real estate investing. However, I am interested in investing in real estate on the side, mostly with buy and hold investments.

Anyway, I currently have a rental in Corpus Christi that got started the same way I think a lot of people get started with rentals...I needed to move and was afraid to sell. So, I rented it out. I have a good property manager and it has a cash flow of about $150 a month.

Things have been going really well for me recently. I am recently debt free due to loan forgiveness for working in low income schools for 5 years. I have no car debt, student loan debt, or credit card debt. I am debt free except for the house. That's why I am wanting to invest now.

Question: The home values in Corpus Christi are on the rise. I bought my house in 2009 for $105,000 and I currently owe $95,000. My house is easily worth $120,000 now. Should I sell that house and use the equity to invest here in Lubbock?

Thanks

Nate

[Brian Mathews]

I think I might sell the property in CC. We lived there when I was a kid and my parents told me it was a maintenance nightmare on the house. I might hold it a little longer to get some more equity, oil and gas are booming down there, so the values might rise some more. You're making $150 a month, which translates to $1800 a year. Have you figured in maintenance costs on a new a/c or roof. Don't forget we're about due for a good hurricane.