I hope to learn as much as I can, here at BiggerPockets, before I do my next deal.
I have been a frequent listener of BiggerPockets and recently finished reading:
The Book on Taxes for the Savvy Real Estate Investor by Amanda Han and Matthew MacFarland
Finding and Funding Great Deals by Anson Young
I am Currently, reading The Book on Investing in Real Estate with No (and Low) Money Down by Brandon Turner
I became a landlord by default. When I purchase my new house, I was single and was not necessarily shopping with a family in mind. My first buy house was tri-lever home that I got for 152K with 3.5% down on a 30 year with a 5.5% interest rate
Once I got married and had our first child, We refinanced to a 15 year mortgage with a 3.5% interest rate. Eventually, we decided to buy our home where we would raise our kids and grow old.
We debated on selling the tri-level, but decided to rent it since we already had the house and we would not walk away with much cash. The house is in a desirable neighborhood and had no problem renting it.
Fast forward three years later, we are on our second set of tenants. I have crunched the numbers and factored vacancy, maintenance, capital, and management expenses and the property has a negative cash flow.
Since we have a 15 year mortgage and appreciation, we have about 100K-140K in equity on that property I really don’t know until we have it appraised. We do have 9.5 years left on the loan, which is a plus.
I toss the idea of using that equity for the next deal or have it pay itself off or selling it completely in order to fund our next deal. We could also do it the old fashion and save for a down payment.
Any advice would be appreciated.
My wife and I are both real estate brokers here in Yakima. If you'd like we could work up a market analysis for you to help you know what you're working with. Just shoot me a message here in Biggerpockets and we can set something up. Always looking for ways to help make Yakima better.
Hi @Peter Welch ,
Thanks for the offer. I don't think we are ready to pull the trigger. Maybe once we get closer to get a more accurate analysis.
Welcome to the BP family! Glad you joined the best real estate investing website! Here are some recommendations for you:
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Hello @Juan Jimenez glad you are here in BP! Congratulations on your success so far. Buying and selling undeveloped land is also a great way to Invest in real estate. Incredible returns, no maintenance needed, and you can buy/sell all over the country. Great way to learn how to create and close deals - and any budget can work!
Welcome to the site @Juan Jimenez
Welcome to BP Juan and best of luck investing!
@Juan Jimenez ,
Welcome, sorry it looks like some of the messages are more solicitation than advice.
It sounds like you have a handle on evaluating property and could apply that to finding something that makes sense to invest in.
I would suggest selling if the place is losing money. The other option would be to figure out how to increase the income of the place to make it work.
You don't need to continue to lose money just to ride out the mortgage.
Would refinancing to a 30 year mortgage change the way the numbers work?
Are you able to somehow divide up the levels to rent out sections?
Best of luck!
Hey Juan, Welcome to BP man!
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