All Forum Posts by: Charlie Price

Chris Ayers that's gr8 that you are in such a good position. I didn't notice if you or anyone else mentioned that since your 6-7 years into your loan you should be knocking out about $500+ per month out of that mortgage. That's an additional $6K per year that your doing no extra work for and not be by taxed (yet) on. And that number will continue to go up slightly each month. You have a history with this property. You know the issues, you know the market, you know the tenant base, you know what has been done to the property. Sounds like it's a little pain to manage, but your banking $3,600 per year + $6K in mortgage pay down plus some excellent appreciation that probably won't go backwards anytime soon. My humble advice is to keep the home. Take a little more time to save up some money to buy yourself one of those nice little rentals in NC. Keep doing what your doing and you'll be sitting real pretty in 10 years. Great job so far. Sounds like your on your way! I love to hear these success stories.

Great responses and advice here. Steve S. Sounds like your in a gr8 situation. Congrats on your hard work to get to that point. A lot depends on where you are in your career and your goals (I'm winding down at 51 and ready to start relaxing a lot more with my family!) The way I look at it is....if I pay down that loan and get extra cash in my pocket from not having a loan payment it's no extra effort as far as managing that asset. However, if I leverage that $$$ go out and buy a small 10-15 unit apartment complex with that, then sure I will make a lot more money, but I will have a bunch of commitment and pressures on my time that goes along with that. My wife and I struggle with your exact same questions as to "pay it down", or buy more property and make more $$. I'm sure many of the readers do as well. When you get to the point that you have enough $$ coming in to live comfortable you start to wonder, at least we do, how much more do we need? Would love to hear other experienced investors opinions.

Julio Gonzalez if I were you, I'd pass on that one and keep looking. Certainly you could find a better deal than that. My humble advice would be to get your financing all lined up and if your new to the game, find yourself a decent realtor that handles investment property. Meet face to face with him/her and let them earn their commission and bring you a good deal. Get it under contract with some kind out clause like an inspection or whatever. Then if all checks out close and your now on your way!

Blake C. A lot of your question lies in what your situation is. I don't see any info on your profile, so can't see any of your experience or goals are. Are you moving or so you want to move? Are you retired or want to retire? What is your monthly income? And how much of that income if any is passive? And many many other factors. If your further along in life maybe you just want to start relaxing and take it easy. Depending on your situation and experience Mark Allen 's advice may be great or maybe way off. Having owned a few dozen SFH's in the past at the same time, I personally would never take or advise that route again. But many many people here and elsewhere have become millionaires doing that. I also would never get leveraged at 75% on multiple properties. But again, many people here do it a lot and are millionaires and more. Not for me and my wife as we went from millionaires to bankrupt in a few short years with being highly leveraged during the last RE crash. 6 years or so after the Bankruptcy we now own our home (about $650K) free and clear. We do have an open HELOC for $135 just as an emergency fund or if some great small deal comes along we want to jump on. Balance is $0 on that. I'm 51 years old, my wife a couple years younger. We have a 30 unit apartment complex (local) we owe only $170K on. We also own two out of town triplexes we have small loans on. Owning your primary residence free and clear is obviously not the best use of your money. But it feels really really good. About 2 1/2 years ago we bought our current home 1/2 built for a song and finished It out with me doing most of the work with a few hourly helpers. We're all in for about $325K or so. It's 4,300 sq. ft. I'm trying to convince my wife we should sell and take advantage of the capitol gains break. Do something similar again. We'll see how that goes. So after the long story....I can't really give you much advice without knowing a lot more. But I always lean towards selling and taking advantage of the tax break. Using the proceeds wisely for another great deal on another home and maybe a Multi Family investment. But if your staying in that area it doesn't sound like there are many good deals there in Dallas area where you could get something under market value. Good luck in whatever you do. Congrats on your large equity position. Sounds like your about 1/2 way to being a millionaire with just the value of your home! Great job, I'm sure you've worked hard and made some great decisions to get to that point.

I'd negotiate....I used to be an agent and I've sold houses for small fees to get the buy side on a larger home, I've taken my commission in trade for cars, boats, electronics and all kinds of things. Best story was about twenty years ago when I sold a house in Atlanta for a guy who traveled to Japan all the time for his job. He had like over a million ski miles. I traded him two first class round trip tickets anywhere in the world. I sold the house in a month or so. Booked round trip tickets to Australia/New Zealand. My wife and I ended up staying there for 2 months backpacking it and touring around the whole South Island of New Zealand. Probably the best vacation of my life!

Tom Giles Great job Tom. Good to hear success stories. I'm almost always in favor of selling and taking advantage of the tax break and re investing that. I would do it every 3-4 years if my wife would let USC. :-). I'm currently trying to convince her to agree to sell our current primary that we have lived in for 2 years +. We own it free & clear and have about $600-$650 equity. We would like to buy something on the water.

Three posts ago where I tagged you. That doesn't shown blue on your screen? BTW.....I purchased my first property when I was in college there in San Diego. It was a 1BR/1BA condo on Ranch Mission Rd., near Jack Murphy stadium way back when Dan Fouts was the Chargers QB! Maybe 25-30 years ago! Bout it for like $45K. Sold it a few years later for maybe $52K. I see it looks like they're going for about $200-$250 now :-)

Crazy....it wasn't blue earlier and now it changed over when I left and then came back to this forum post. Strange. Anyway, seems to be working for me now, just with a delay??? :-)

Teresa Knepper I'm not a lawyer, but I would say that the lease is void at this point. I've have thousands of tenants over the years and never once had one of the bad ones come back.

Teresa Knepper Good for you putting your foot down and evicting someone. My dad he plenty of rental properties for my entire life and I don't know that he ever evicted anyone to this day.! (He's 90 years old!). I on the other hand have evicted dozens of tenants. To me it's just part of the business. I tend to take a few more chances and keep my rentals full though. I NEVER chase after the money someone owes me. I forget it move on, learn a lesson and spend time looking for another Tenant, hopefully a good one, that I can get in there ASAP.