All Forum Posts by: Gregory Schwartz

I’ve been reflecting a lot lately on the difference between being wealthy on paper and feeling financially secure day-to-day.

We currently own several rental properties in Bryan and College Station, TX—most of which don’t cashflow much, but they at least break even, occasionally allowing us to make improvements like new siding, stairs, or converting a unit to an Airbnb. I’m genuinely proud of the portfolio we’ve built. The properties are in great shape, the market fundamentals are strong, and I firmly believe that over the next 20 to 30 years, the equity we’ve built will turn into a major asset for our retirement.

I recently played around with a retirement calculator and the projected number at age 65 was way higher than what we currently live on—which was exciting… until I looked at our current financial position.

Despite all this long-term equity, we’re feeling squeezed. We don’t have a fully funded emergency fund (we’re not even at 6 months). We need about $15K for an important project on our personal home. And while four of my rental units have received new HVAC systems recently, our own home still has a 30-year-old unit barely making it through Texas summers.

I’m also self-employed, so our income isn’t always consistent—it’s seasonal and can fluctuate significantly. All of this led us to a tough but necessary decision: we’re going to sell one of our rental properties.

It’s our least favorite one. The equity is there, and the sale will allow us to:

• Fully fund our emergency savings

• Knock out the $15K personal project

• Shore up our financial foundation so we can breathe a little easier

This isn’t a move made out of panic or desperation. It’s a strategic rebalancing—trading a piece of our long-term vision to strengthen our position today.

I’m sharing this because I think many investors—especially those of us early or mid-journey—face similar tension between long-term wealth building and short-term financial realities. Sometimes the smartest move isn’t to buy more, but to adjust your current foundation so you can invest from a position of strength.

Have you ever sold a rental to fund your personal financial stability?

@Tammy Fleming have you looked into the SBA 7a loan? 

We’re okay with roommate swaps in shared housing situations. If, say, one of the four tenants is moving out and the group finds a replacement, we’ll go ahead and screen that new person. That said, we make it very clear up front that the incoming roommate is taking on joint responsibility for the entire unit’s condition. That means:
-We don’t do cosmetic upgrades to the room just because someone new is moving in.
-Any existing damage becomes their shared responsibility — they’ll be equally liable for repairs at move-out.

However, if the entire house is moving out, we do not allow a full tenant swap. While avoiding vacancy is definitely important, we’ve found that we retain new tenants more effectively when we have the opportunity to prep the home to our standards before a fresh lease begins. We also tent to get better rent bringing in tenants that we find through our marketing and our screening. 

Hope this helps. Good luck

What alternative provides the same level of risk adjusted return? Even if we assume that population is slowing, where else would you park money for 10-20 years? 

I look for positive cash flow and greater than 12% IRR on a 5-year timeline (assuming I were to sell in year 5) while running conservative but realistic numbers for maintenance, vacancy, Capex, etc.

For me and my portfolio, those numbers allow me to sleep well at night. 

Took me about 5 min to find a market.

First, Google "cities with decreasing populations"
I figured Jackson, MS was a place I'd never want to live. So I looked up home prices on Zillow. Here's a nice $60k option: https://www.zillow.com/homedetails/1064-Arbor-Vista-Blvd-Jac...
Single-family house, 4 bedroom, 2000 sqft. 

Then, put the address into Rentometer to find out the average rent in that area, $1174

So here we have it, a nearly 2% rule home on a house I would never want to buy in a market I wouldn't want to invest in. 

Join us for the next Bryan-College Station Real Estate Investor Meetup on Thursday, May 8 at 5:30 PM at Schwartz Realty Group (4103 S. Texas Ave, Suite 105, Bryan, TX).

Special Guest: Sean Moore, Moore Inspections
Sean has inspected hundreds of homes in BCS and will walk us through what to look for when analyzing investment properties. You’ll leave with a better eye for detail and a sharper toolset for evaluating deals on the fly.

Whether you're just starting out or have years of experience, this is a great chance to learn, grow, and connect.

Food and drinks will be provided.

Let me know if you’re coming, or feel free to bring a friend and just show up. Looking forward to seeing everyone there!

 I stand corrected, my wife pointed out that we have a studio apartment that we lovingly call the hobbit hole. We rent it MTR on Airbnb for about $1200 a month. No dishwasher. The place is about 200sqft with no room for one. 

Texas? Specifically, Texas A&M
- One of, if not the, largest universities in the United States in a town of just over 200,000 people (Bryan / College Station TX).
- A university that has grown 30% in the last 10 years. One of the fastest-growing universities 
- Landlord-friendly laws
- The 2nd fastest-growing state in the US