All Forum Posts by: Josh Mayfield

Thank you everyone for your feedback. I'm really happy to talk to other investors and real estate professionals to glean knowledge. I agree, $2200/yr. is a small price to pay to advance my real estate education. Lawrence Potts also commented and quoted Alex Hormozi, “paying down your ignorance debt”. Moving forward, I think the only way to pick-up rentals in my part of Washington State is to find off-market properties that need some help.

I am a high earner so a 1-2 year loss isn't going to cause stress while I investigate a strategy pivot vs. selling. My understanding is that I can't use the losses to offset my W2 income. Is that correct? (Sheena Drake also mentioned this desire below).

My rate is 6.125% so that isn't helping my bottom line. I have a 10-unit complex that I'm selling and the owner is carrying the loan and will allow me to roll my remaining principal into my next project at 4.75% so I'll probably pay off the current loan with that $ and that will help with the loss but as it is, still won't provide a great return. 

Phil, you're right, I don't think I can sell it for much more than I paid for it right now so selling it isn't my best option. Sounds like my best option is to see if I can pivot strategies as recommended by Clayton Silva and consider short-term rentals, temp housing, etc.

Thanks BP friends.

I'm in Spokane, WA and like many other markets, single and multi-family property prices are high. I purchased a duplex last year that was priced about $20k less than similar properties ($385,000). I admit that I was eager to get into the market here and jumped the gun on this one. At current market prices, I don’t see how it’s possible to get properties to flow positive as rental rates haven’t kept up. I’m not able to get it to cash flow positive and in fact, anticipate needing to feed it an average of $2200/yr. for the next 5 years. Probably would need a new roof in the next 3 years.

Wondering if I should cut losses and sell it; should be able to sell for $395k. Since purchasing this property, I’ve advanced my education via Deeper Pockets and understanding of the local market. Will continue to pursue markets outside my immediate area as well as looking for off-market buy opportunities. Would appreciate any feedback. I’ve included some numbers below

Purchase Price: $ 385,000

Amount Financed: $ 288,750

Down Payment and Purchase Costs: $ 106,000

Gross Rent: $ 2,342

Operating Expenses: $ 949

Net Operating Income: $ 1,393

Loan Payments: $ 1,754

Cash Flow: -$ 361