All Forum Posts by: Doug Hogan

Good afternoon, BP Forum,

I'm in an interested situation and am curious to get some unbiased thoughts/opinions on the matter. I'm in the process of moving out of my primary SFH and moving in with the girlfriend. I'm planning on hanging on to my primary and renting it out (medium or long term due to local rental laws). The caveat is my mortgage is $3,100/mo and the comps in my area are renting ~$2,800/mo, so it's not going to cashflow, especially when accounting for management, vacancy, maintenance, etc.

My thought is my gf and I are both paying separate mortgages at the moment (combined nearly $7,000 between both of our mortgages), so even if my SFH rental isn't a net positive cashflow we'll still be bettering our financial position due to the rental income it can/will produce.  Plus we'll still benefit from appreciation, loan paydown, equity, etc. Also, while it won't cashflow right away, rental rates will continue to rise and in 3-4 years it will very likely be a cash-flowing property (it's in a prime location with tons of upside and development going on around it). 

My question is - is it foolish to hang on to this property that's at a negative cashflow, or am I on the right track thinking of the longer term benefits? Are there any risks or benefits that I'm not considering? Appreciate the feedback! 

Thanks! 

This is great. Thank you all for the feedback. I'm brand new to investing and relatively new to the midwest, so I wasn't sure how the harsh climate impacted construction. This helps a bunch! 

Hi everyone - I was curious on what peoples thoughts are with flipping houses during the winter in cold weather states (ie: Minnesota, Wisconsin, Iowa, etc). Does the severe weather create limitations for finding GC's or hamper their ability to get work done in the harsh conditions? Or does the weather not have as big an impact on their work as I'm picturing in my head? 

I would imagine exterior work like landscaping, siding, roofing, etc would be impacted a good bit. Any thoughts or feedback from those that have expereince in this area is greatly appreciated.

Thank you!

Thank you all for the replies and for the encouragement! Excited to be a part of this great community! 

Hi everyone,

First-time poster and new to the Real Estate game! A little about myself - 36 years old, living in Minneapolis for about 2 years now (originally from South Carolina), spent my career thus far in tech sales, and I'm really excited to begin my REI journey. Spent the last several months reading books (BRRR, How to Invest in RE, Book on Rental Property Investing, Book on Flipping Houses, etc), listening to podcasts, scouring the MLS, and trying to get as much education as possible. I'm at the point now where I need to get out of the "analysis paralysis" stage and start taking some concrete steps towards my first deal.

I'm mainly interested in single or mutli-family rentals or even a fix & flip. I have a good chunk of savings built up, a good W2 income, and excellent credit history.

More than anything, I'm excited to meet and network with all of you in the BP community, build some relationships, learn a bunch of new things, and maybe even form some win-win partnerships!