All Forum Posts by: Hedman Maximus

@Hedman Maximus, working class people often struggle to pay rent sometimes or are on public assistance programs like section 8, SNAP, or make occasional use of rental assistance programs. That doesn't explain your concern entirely.

Generally speaking the lower class the rental, the BETTER the opportunity for cash-flow! However, the management style/approach needed to make lower class rentals work well is going to be different than higher class ones. Most people don't want to focus on D class rentals in part because of that. They don't want to be considered a "slum lord".

Maybe consider if you can remediate the current situation by making changes with how you vet applicants, manage tenants, etc before you focus your efforts on pulling out of there.

A couple comments on the other items you mentioned. You don't need to pay off your commercial loan before doing a refi. You can refi and in that process pay off the current loan all at once.

I would not worry about all the value disappearing unless you see something that will affect the whole market you are in disappear such as "the only factory in town closing" or something like that. Everyone has to live somewhere and even people making entry level wages can pay rent.

Maybe, explain some of the issues you have been having and you might get some suggestions for how you can change how you manage your properties and tenants. 

It sounds like you have some tough challenges in your local real estate market, but you also have some options to consider with the $50k you recently received. Here are a few thoughts on each of the options you mentioned:

1. Pay off credit card debt: If you have high-interest credit card debt, paying it off can provide immediate relief and improve your credit score. This may be a good option if you have high-interest rates or significant credit card balances that are weighing you down.
2. Pay off commercial loan: If you pay off the commercial loan, you will own the property outright and could potentially refinance to a lower interest rate or take out a cash-out refinance to fund another investment opportunity. This could also increase your cash flow by eliminating the monthly loan payment.
3. Sell properties and start fresh: Selling your properties and starting fresh may be a good option if you are struggling with your current properties or want to invest in a different market. However, it's important to carefully evaluate the costs and benefits of selling, including potential tax implications and the costs of finding and acquiring new properties.

In terms of scaling up your real estate investing, you may want to consider exploring other markets or investment strategies that could provide higher returns. It's also important to build a team of trusted professionals, including contractors and property managers, who can help you manage your properties and minimize risks. Finally, it's important to have a solid financial plan in place and to carefully evaluate each investment opportunity to ensure it aligns with your long-term goals.

What counties in upstate New York are you investing?