Quote from @Jonah Slove:
Quote from @James Hamling:
@Jonah Slove I can't believe people would be so callous to say "don't sell" on a $1.3m property getting $2,500mnth in rent. I guarantee not a single one of them would pay $1.3m for a property getting $2,500mnth in rent. I and most wouldn't even pay $500k.
So it's a NO BRAINER, SELL!
And if you don't have a need for the cash right now, be smart, 1031 it into something else. Something with better ratios of rent to price which will be VERY easy at this point compared to what you have now.
I suggest to keep things simple. I'd buy new, keep it around median home price, think median rent's, a place people want to live and would be happy to pay rent to live. Simple. Keep it simple. Feel free to go 50% down, but use some leverage, enjoy a tenant making pay-down for you.
Ya thanks, it seems like a no brainer. Just having a tough time exploring what else is out there. My direct market isnt the norm as you can see. I would love to chat and hear what kind of strategy you would recommend. Thanks
Happy to chat, feel free to DM.
For persons in general similar position, wondering "where do I go, what should I jump into" is the WORST way you can try to answer this, looking at all the various market's and deployment potentials first.
What SHOULD be doing is starting with self-inventory. What your capabilities and expectations are. Are you ok with doing maintenance, or not? How much annual reinvestment in maintenance and cap-x is "ok"? Define this perimeter. Are you ok with tenant issues or not? How much? Is greater of lessor potential of dealing with an eviction ok? What is expectations of profit returns? No, DONT make it a per month number that's novice to point of grade-school, set a whole $ amount by yr 5 that is upward desire and minimum required.
When you START with this self-inventory of capabilities and expectations, than we can take this list and map what it target's. It will define what property and tenant class are viable, what market's, rent ranges and unit pricing. It will even map out market's of viability.
And than, it will tell one the criteria to weigh by, but what the viable options are so it becomes a choice between viable options instead of randomly saying "oh, which of the 14,000 potential market's do I explore".
It's an action of using focus vs random chance.
Generally today what I see for one of the greatest opportunity "zones" is in AAA strategy. Working in path-of-progress, sweat-heart terms from developers attaining sub-market rates, superior inventory, leading to superior tenancy and done correctly, superior returns.
This market cycle is NOT on where a person looks to "buy a pay-check" which is exactly what one is doing when looking to buy some big cash-flow day 1. The vast majority of time what one get's is a big reoccurring operational expense to match.
Keep in mind how active or passive you want to be or can be, are you a Landlord OR an Investor, they are 2 very different things that are the most jumbled skewed lines in business by novices/public in mass.
