Hi everyone, first post, I'm new to the site and can't wait to become an active member of the community. The set up, here goes, my wife and I own three homes the first in Ohio is worth aprox 65k we owe 40k, we have it rented for $650/mo, the second is worth aprox 190k we owe 170k and have it rented for $1200/mo. We are moving to southern Utah to escape the cold, the third house we bought for 75k. The first house has $300 cash flow the second house no cash flow. I will be getting $30k from a retirement acct soon I was thinking of paying the mortgage on house 2 down a bit and refinancing to make it have some cash flow or pay off the first house so it's cash flow would help offset the second house or put my retirement money into our Roth accts and figure something else out. I'm obviously really green and any advice is welcome and appreciated. I have ambitions of being a legit REI but as you may have guessed have a long way to go. Thanks in advance for the advice
welcome to the site mike
Thanks James, appreciate it
Hey Mr. @Mike McCool ,
I work, invest and live in Southern Utah. Are you moving to St George?
As for your questions. A lot of questions unanswered like: management from a distance, do you like land lording, what are your long term goals, what kind or REI do you want to do, etc.
The last thing I want is leaky pipe 5 states away.
Moving to Hurricane. We have been really lucky with good renters so far, and none of our homes have been true investments, just houses we have moved from and kept as rental. If we settle in Utah I foresee selling the Ohio properties. I am thinking buy and hold sin family investments though. I must admit I am a lil anxious about managing from afar. How do you like St. George?
Nice looking dog Mike :)
House 1: Keep it
You mention $300/month in cash flow from this property. Are you putting money aside each month for the times you have to repair the roof, fix the steps or replace the furnace? If not, start putting some away each month into a separate account. I put away $150/month for each roof I own.
House 2: Sell it
Sounds like a lousy investment. Can you sell it and get out from under it without losing your shirt? Is it possible to raise the rents? Can you turn it into a money maker of any kind? If not, I'd try and sell it. Same issue with this one, are you putting money aside for later fixes?
House 3: Sounds like you live in this one
30k coming your way: Invest in House 4 :) I'm always a fan of cash flow.
If you don't have Capital Expenditures accounts for House 1 and House 2, you might want to jump start those with some money from this pool.
Thank you very much for your advice. We are putting money aside for maintenance and repairss each month, and I think you are right about house two, although we are kinda emotionally attached. Thanks again I will be following your advice.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!