All Forum Posts by: Jonathan Buehler

Thank you for your insight! You make some great points. I hadn't thought about the higher interest rates and fees involved with purchasing pure investment property. Not to mention the quality of the tenants with lower income properties. I like the idea of using 5% conventional financing for my next property and possible looking into refinancing my current property to improve the cash flow position. Also, which could be the biggest benefit of all, realizing more profits (Tax Free!) in the future when I more experienced and have a better understanding for investing. Thanks again!

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@Michael Siekerka

Thank you for clarifying. I understand now. Based of this analysis, if my home was worth $185,000 at a 10% discount it would sell for $166,500. I believe that would be a good good buy in this market. This definitely helps to understand my position better. Thanks

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Originally posted by @Michael Seeker:

@Jonathan Buehler - I was in your shoes when I first got started. I decided to keep my first house as a rental. It wasn't going to appreciate, but I made a nice cashflow every month from renting out it. The most important thing I learned from the process was to take a step back and look at the fundamentals and ask myself, "Would I buy this property at a slight discount to market value today?" If the answer is no, then you might want to look more seriously at selling it. If the answer is yes, then I'd say you might want to stick with it.

From the info you provided, I'd say sell.

Thank you for your post. Could you explain your fundamental concept of "would I buy this property at a discount to market value today? I just want to fully understand. Thanks

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Originally posted by @Elizabeth Colegrove:

it really depends on your goals. Our houses have appreciated but long term the cash flow is our goal so short term gains only help if you have some where else to invest it.

The question is what's your goal? What would you do with the profits if you sold it? Do you want to be a landlord?

My long term goal is to create a passive income to supplement my primary income. I thought about purchasing two less expensive property's with better cash flow opportunities and living in one of them until I could afford to make another purchase. I don't think I would be a great landlord. So I would want to use a property manager.

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Hello,

I'm new to the investor world and I want to get started on the right foot. I've lived in my 2BR/1.5B town home near the beach for 5 years. I owe 135K and my mortgage is 1100.00 per month. Through some research I've determind that it would rent between 1200-1400. However, the real estate market in my area has really heated up and it's become a sellers market. As I stated above I owe approx 135K and the Zillow value is $181(although I believe it would sell for more based off other recent sales in my area) I believe the area will continue to go up in value so I'M considering renting the property for lower cash flow or break even to realize more gains in the future. My long term goal is to create a passive income that could eventually supplement my primary income.

Should I sell the current property and use the gains to invest elsewhere (less expensive rentals) or hold on for potentially greater gains down the road?

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All Forum Posts by: Jonathan Buehler

Jonathan Buehler has started 2 posts and replied 15 times.

Post: Rent or Sell my primary residence

Post: Rent or Sell my primary residence

Post: Rent or Sell my primary residence

Post: Rent or Sell my primary residence

Post: Rent or Sell my primary residence