New investor - Looking for some guidance

Member since 2025 · 4 posts · 3 votes

Got a decent price on my first rental property in DFW in 2022 but it hasn't been a money maker. Tenants recently moved out and I got a work transfer to Austin so I'm sitting on 2 properties. Would love to speak with someone that's been in the business for a while as a mentor to help me with the rent or sell decision. More than willing to help however I can because I don't want it to be a one way street.

2 Reply

147 views

Most Popular Reply

Benjamin AakerPro Member

Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes

9mo

Quote from @Pete Crane:

@Kenneth Garrett thanks Kenneth. At the time (2022) I was overly excited to get a decent price on the property and didn't do a good job on my due diligence: $3,300 a year difference in property taxes between purchase price and assessed value, HOA increases, costly repairs and increased vacancy the last 2 years. HOAs don't allow STRs which may have been ideal with the World Cup coming in 2026. I believe I need to sell but now Dallas (specifically, the neighborhood the house is in) is experiencing some major slow down. Not sure if it's worth holding onto until the market picks up/stabilizes, cutting or exploring options I'm not familiar with. Appreciate the thoughts.

Pete, you just answered your question. You need to sell. Get it off the books at decent price and take a loss if you have to. You'll take a bigger loss if you try to rent without really wanting to, in a bad market, and underwater. This is a learning experience; we all have them and it'll be great education if you decide to do another one. I hope you do.

1 Reply

See this reply in the discussion

10 Replies

Jump to latestLatest

Sort by

Michaela Hayes
Flipper/Rehabber · Philadelphia · Member since 2024 · 42 posts · 20 votes
9mo
Welcome, Pete — you’re not alone in this. A lot of 2021–2022 buys made sense on paper but got squeezed by rates, taxes, and insurance.

Before deciding rent vs sell, I’d look at a few things:
- True all-in numbers (PITI + maintenance + vacancy + management, even if self-managing)
- Current market rent vs. break-even — not what it used to rent for
- Equity position and whether that equity could be redeployed into a better-performing asset
- Whether a light value-add (rent refresh, mid-term rental, room-by-room, etc.) could materially change cash flow
If it’s negative and requires long-distance management from Austin, sometimes selling and repositioning capital is the smarter move — not a failure. Other times, a strategic reposition is all that’s needed.

Happy to share how I typically evaluate this decision if you want to compare notes.
1 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9mo
@Pete Crane
When you say it hasn’t been a money maker are you referring to it not being cash flow positive or is it negative. If it’s cash flow positive just not as much as you thought then the decision needs to include whether over the next few years will the cash flow increase and will you keep seeing appreciation. Sometimes deals are slow out of the gate, but over time they are pretty good.
If you can get better returns by selling and re-investing your money then that is an option.
Another option is using the property as a mid-term rental where your income will increase 1.5 -2 times the standard rent, it’s just more effort on your side and you will need to furnish it. Of course, short term rentals are another possibility, but that takes even more effort of your time.
I own LTR's MTR's and STR's. Sometimes it's just adjusting your strategy for the best use.
0 Reply
- Pete Crane
  OP
  Member since 2025 · 4 posts · 3 votes
  9mo
  @Kenneth Garrett thanks Kenneth. At the time (2022) I was overly excited to get a decent price on the property and didn't do a good job on my due diligence: $3,300 a year difference in property taxes between purchase price and assessed value, HOA increases, costly repairs and increased vacancy the last 2 years. HOAs don't allow STRs which may have been ideal with the World Cup coming in 2026. I believe I need to sell but now Dallas (specifically, the neighborhood the house is in) is experiencing some major slow down. Not sure if it's worth holding onto until the market picks up/stabilizes, cutting or exploring options I'm not familiar with. Appreciate the thoughts.
  1 Reply
- Benjamin AakerPro Member
  Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
  9mo
  Quote from @Pete Crane:
  
  @Kenneth Garrett thanks Kenneth. At the time (2022) I was overly excited to get a decent price on the property and didn't do a good job on my due diligence: $3,300 a year difference in property taxes between purchase price and assessed value, HOA increases, costly repairs and increased vacancy the last 2 years. HOAs don't allow STRs which may have been ideal with the World Cup coming in 2026. I believe I need to sell but now Dallas (specifically, the neighborhood the house is in) is experiencing some major slow down. Not sure if it's worth holding onto until the market picks up/stabilizes, cutting or exploring options I'm not familiar with. Appreciate the thoughts.
  
  Pete, you just answered your question. You need to sell. Get it off the books at decent price and take a loss if you have to. You'll take a bigger loss if you try to rent without really wanting to, in a bad market, and underwater. This is a learning experience; we all have them and it'll be great education if you decide to do another one. I hope you do.
  1 Reply
- Pete Crane
  OP
  Member since 2025 · 4 posts · 3 votes
  9mo
  @Benjamin Aaker more expensive than my first education. Thanks Benjamin.
  0 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
9mo
@Pete Crane Like others mentioned you need to dive into your numbers and figure out what makes sense for this property. In our experience if we decide to hold a rental it needs to CF (day 1) or at least break even on a monthly basis including $$$ for reserves, and PM if you choose that route.

Most markets are experiencing a slow down. Most of it is seasonal but we also believe there's more underlining issues in this country. We're experiencing this with a listing we have for sale. Most qualified buyers are just kicking tires and wasting people's (agents) time. Political uncertainty isn't helping anyone.

You have until March to decide sell or rent the property. That's usually when transactions become more frequent. It's also a great time to sign a lease and move in tenants. Better see some light at the end of the tunnel. If you're upside down on equity and collecting no CF that's a dangerous position to be in. The CF needs to come around in 1-2 years otherwise I'd take your loses, learn from it, and move on.
0 Reply
- Pete Crane
  OP
  Member since 2025 · 4 posts · 3 votes
  9mo
  @Jaron Walling thanks Jaron.
  0 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
9mo
Quote from @Pete Crane:

help me with the rent or sell decision. .
We can put up for rent and/or sell at the same time and see what comes first. There are some different strategies with that idea as well we can discuss. Both rentals and sales have been a little slower over the past year. I expect we'll start to see some rent increases in 2026 as we burn off all this apartment inventory and harder and harder for potential first time owners to save a down payment and afford the monthly house payment.
0 Reply
Diego AlvaradoBusiness Member
Real Estate Agent · Flower Mound, TX · Member since 2016 · 298 posts · 140 votes
9mo
Hi @Pete Crane
It is always a challenge to find the right solution, which is why real estate investing is ultimately a long-term game. I recommend sitting down and really digging into the numbers—look at all your costs and re-evaluate your long-term plan.

There is a growing trend toward mid-term rentals and rent-by-the-room strategies. I have been supporting many clients with this, and I am actually finishing a project right now that is ideal for the rent-by-the-room model.

Of course, location is key, especially with the upcoming FIFA World Cup bringing a huge influx of visitors. I recently had success securing a mid-term rental specifically for the World Cup, and I am seeing many travel agencies already planning for it.

In short, don't give up. There is always an exit strategy that can work for you one way or another; it all depends on your goals.
[email protected]214-833-8911
Alvarado Realty Group522 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.