Sell and invest or hold?

Question

Been sitting on the sidelines for a long time.  Ready to get started.  Wanted to get some wisdom before moving forward.  We currently own a property on 18 acres in Idaho.  Inventory is super low up there, especially with homes that are turnkey with land.  If we sell, we walk away with enough money to purchase a home cash in Texas or Florida to live in and enough to pick up 1 rental property cash or a multifamily.  Looking at investing in the panhandle of Florida.  If we hold, we keep the property and the mortgage (family is a bit emotionally attached to the property), thinking if things turn worse for the economy we could be stuck with the mortgage.  Would you make the move or hold?  Sell and go debt free with the mortgage plus investing dollars? Sidenote... We are not fond of the long winters..lol

Doug Spence · Answer

@Charles Mier Welcome to bigger pockets! This is a tough question to answer without knowing the long-term goals for you and your family.

That being said, it is definitely a good time to sell in Idaho, and if you see yourself eventually moving to TX or FL, I would probably sell and make the move now.

What are the terms of your Idaho mortgage? Could you keep the property and rent it out, or do you have to sell to move to TX or FL? I own a home in Pensacola and I'm a big fan of the FL panhandle!

Best of luck and keep us updated on your decision!

Robin Searle · Answer

@Charles Mier seasonal rental rates have gone crazy in Florida. I bought a house in Venice last year and have been keeping an eye on them. Join the Florida Snowbirds FB page and you’ll get a snapshot of demand. Also check out some property management sites like Horse and Chaise in Sarasota and Venice to see what homes are renting for! If you can buy an investment property there that info might help you make the decision. Plus it’s a little bit of paradise! I’m 7 minutes from Manisota Key Beach. I still live in Colorado most of the time and feel I’ve got the best of both worlds!

Ryan Rutoskey · Answer

I am always one to be on the side of going debt free. If you are educated on these types of transactions I am sure you can be profitable when you move.However, you adding in the family side of things. would it cause problems for you and your family's relationship if you encouraged to sell?

Adam Fleck · Answer

@Charles Mier Good thoughts all around here, but I'm siding with @Michael Hamby. The family situation may make things complicated in the long run. However, depending on which county the property is in, there may be limitations on how small you can split the lot (without needing a full PUD/subdivision plat).

Land is very valuable right now, and I'm sure you get offers every day on the property (I get them on mine daily). Selling off the platted land would be the most valuable, but more time consuming too. Rents for a 5bd house are hard to find, from what I hear in Boise, though your market may be different.

Good luck and welcome to BP!

Jim Paulson · Answer

The first step, in my opinion, is to figure out the highest and best us of the acreage.  How close is water, sewer, etc., to be able to subdivide to individual lots.  If it isn't immediately available, with growth, how soon would you anticipate it?  I used to own 10 acres in Meridian, Idaho that I held until developers bought me out.  I did great, but my problem was I only had 10 acres. (grin)  I have several clients looking for RV & mobile home parks in Idaho so if you get serious about selling, let me know!  I have represented seven developers over the years so would appreciate being able to review your project with one or two of them as well.  Best of luck in your decisions!

Charles Mier · Answer

@Michael Hamby,  I like that perspective.  Thank you.  I think we have decided to keep some of the land that's partially developed and sell the rest to achieve some goals of ours and invest.

Charles Mier · Answer

Thank you @Robin Searle.  Yes we have seen the potential for rental income is attractive.  We may want to try to keep the best of both worlds too.  Ill check out the Florida Snowbirds FB page.

Seth Young · Answer

@Charles Mier Welcome to Bigger Pockets! I think you have the right idea in selling the property and investing in other states that have more growth potential. A market like Texas would be perfect for that. The biggest aspect investing out of state, besides the market, is the team you work with. I would suggest working with an established team that has consistent and reliable reputation. Best of luck with all your investing!

Patrick Drury · Answer

@Charles Mier Cash-out and move to Florida so you can go to the beach often, get away from the cold winters, and enjoy no property tax. Now is a perfect time!

Charles Mier · Answer

Wouldn't cause problems, just reestablishing in another town is not fun.  Thank you for the response.

Sell and invest or hold?

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