All Forum Posts by: Julian Boardman

That's Jonathan for the informative reply.  We owe about $270k on it and 10yrs left on our note of 15yr amortizing at 3.75%  fixed rate.  The payment is $3400month with $2k going against principal, so not really cash flow to us.  The really good thing with this property is the tax is based on $300k, not anything near the current value.  We would prefer to have 10-20 multi unit bc if the upstairs is vacant for 2 to 8 weeks, that is 15+% of the rental income.  If we refi, the rate would jump to possibly  4.75%.  So yes, most would keep it as is but then  again, we only get about $1700 cash flow bc of the principal paydown.  The agent feels strongly about a $700k value but we are prepared more for a mid $600k value. We will probably do a 1031 to a multifamily if we can. We have options but keeping as it limits other opportunities. 

Dougie,  

We think that might be best but also, we look at opportunity costs.  The property will not increase much more for next few years, say 3%, so cash flow is creating $42k.  

Current property - $400k equity, creates $42k cash flow yr. 

Asset appreciation - 1-3% depending on market conditions as we believe topping out in the area.  

New property to invest using $400k as down payment, loan of $900k -$1.3mil buy- assumptions.  20 units at $700 unit average rent or $168k minus debt of $50k debt and $60k expenses = $58k cash flow.  

With an NOI of $58k including debt service with rents under market by 10%. Also do some value add to increase another 10% over 2yrs. So gross rents go up to $91k, less $9k vacancy = $82k NOI.

Good morning to all! New to BP and appreciate all the content.  We are looking to sell our great rental property (see why further below) as we want the capital out to do other larger deals. Otherwise, the cash flow is too good to pass on for us. I am a contractor so we did the work.  Here's the skinny:

Purchased 1200sf home in nice area, very popular area in Atlanta (Brookhaven) years ago for $110k. Added about $300k new 2013 construction to tear down and rebuild (leaving some slab and basement walls into a main home of 4bed/4bth and 1bd/1bath separate apartment.  2880sf main and 900sf apartment, 2 car garage, parking for 6  cars, 7500sf lot. 

Rental income is $3650 up and $1295 ($1.33sf) down (includes utilities on apt), just under $5k per month. Rents in the area go for near $1.75+ sf for apartments. Been consistently rented for 5yrs. Expenses run for us $700 per month but new taxes on sale will push to $1100 per month. With debt of 20% down, 4.75% rate, included, NOI is about $42k per year.

Our agent is thinking sell in low $700's selling as single family home with inlaw suite (new and late model construction runs $225 to $260sf) within 1 mile, many comps.  We are thinking maybe sell as investment property but at what cap / cash on cash for class A/B property?  Greatly appreciate input !!!