All Forum Posts by: Gavin Dowdy

Ryan,

Thanks for the feedback!

I'm not sure if a refi would make much of a difference, since I purchased the home so recently (October 2019) but maybe worth investigating. My main concern with a refi would be paying closing costs again, since I don't have much capital in reserve. I currently have a conventional, 30yr fixed rate at 4.375% interest. The property is worth roughly $195k (according to my realtor last week), and I owe $186k. My monthly payment is just over $1,000 including taxes, and I don't pay mortgage insurance. I don't know, but it doesn't seem likely I'd get a much better deal with a refi.

Looking at rent comps in the area (Centerville) for a 2 bedroom 1.5 bath with 1,000 square feet I've estimated it'll rent for about $900-$1,200 a month, but another concern I have is the $230/mo HOA fee involved. If I have the tenant cover the HOA I worry it'll be difficult to rent out, and if I cover it the $1,200 in rent wouldn't cover the mortgage, HOA, property management, and CAPEX... And would probably have a negative cash flow of a few hundred dollars a month, best case.

Obviously I'm pretty new to this, so maybe my numbers are way off or I'm missing something here but it just doesn't seem feasible to keep a tenant in the unit and cover all the expenses.

Refinancing would help with those numbers a little, but I don't think I could cover closing costs to refi and still have money left over for the move to Oregon and wouldn't even be close to enough cash to buy a property after I move, even with an FHA loan.

Hey there Bigger Pockets community, first post here!

I recently got a job offer in another state and I'm trying to weigh all the pros and cons to see if that's something I should pursue, or if I'm missing something or have options I'm missing. Allow me to elaborate.

I'm 22 years old and currently live just north of Salt Lake City, UT. I have a job I enjoy, and bought myself a townhouse to live in about 5 months ago. Two weeks ago I got a call from my previous boss offering me a position near Portland, OR with a decent raise, doing work similar to what I do now.

Obviously there are a lot of factors to take into account when considering that big of a move, but the one that's hanging on my mind the most is what I should do with my current home. Looking at what I owe on the house, what comps are selling for right now, and having a discussion with my realtor and a few family members, everyone is suggesting I keep the property I live in right now and just rent it out, then move to Oregon and buy a second property there.

What I would love to do is exactly that, rent out the townhouse I live in currently to cover the mortgage, and cash flow if possible, then purchase a home near my new job and house hack there to cover most/all of the mortgage and live "for free". Unfortunately, I don't think the property I live in now will pull in enough rental income to cover the mortgage, and on top of that, I'm fairly certain selling the property would actually take money out of my pocket.

I do have some time to think about all this, since the company I work for has a travel ban in place right now due to COVID-19, I'm not able to travel to Portland for work yet, but whenever this pandemic ends, this job opportunity and big lifestyle change will be staring me in the face asking for action to be taken.

I want to get into real estate investing at some point in my 20's, and I don't want to set myself up for failure by making bad choices with my current situation. What would you all do? What would you recommend I do? Do I sell the house and just take the losses, then try to rebuild my cash reserves to put a down payment on a new property? Am I missing something that might make the property work as a rental?

Any advice or suggestions are more than welcome. Thanks in advance!