All Forum Posts by: Matt McGuire

An update, I did receive leases for the 2 tenants. They did have them sign new leases but they show the lease term is over on both and they are currently month to month. 

If you live in or around Conroe, The Woodlands, Spring, Willis, Humble, etc. come out and network your peers! We will be sharing stories and making meaningful connections. This is not some big production, just real people getting together to talk about real estate. I hope to see you there!

@Mark Zermeno, I do it the third Thursday of every month. 

I know what the market rents are in the area and the purchase price is a pretty significant discount. I can afford the mortgage if I have to carry it for a few months, but one unit is vacant. What I'm thinking is I get the vacant unit fixed up and rented out, then even if the others aren't paying at least I have income during the eviction process. 

I have a triplex under contract right now and 2 of the units are occupied. The current owner cannot provide leases for the current tenants. I asked for some kind of proof of payment and he didnt provid that either. I want to know what the rents are, and the lender needs the leases as well. I also sent an estoppel agreement to my agent and asked her to get the tenants to sign that. All of these are so far unsuccessful. 

My suspicion is that the tenants are not paying rent which is why he is selling. With the current pandemic and eviction restrictions, what advice do you have for this situation?

The property is in Texas but it is not local for me its about a 4 hour drive away. 

The meetup is tonight. Take action, step outside your comfort zone and come hang out. It'll be a great time!

At the top of this page. 10/15 @ 5:30pm at the Pacific Yard House in Conroe

If you live in or around Conroe, The Woodlands, Spring, Willis, Humble, etc. come out and network your peers! We will be sharing stories and making meaningful connections. This won't be some big production, just real people getting together to talk about real estate. I hope to see you there!

I love the participation on this one. So, I probably will hold onto it. Here are some more details:

I bought it in March of 2019 for $145k with a conventional 25% down investment property loan. Now you can't find a similar property for under $250k. 

It cash flows $600/mo after expenses. Total rents are 2400. I did a cash out refi in March but I only got an appraisal of 180k so it wasnt that great. After expenses I walked away with $12,500, but since the interest rate was so much better my payment actually went down by a few bucks. 

So right now I owe about $125k and I think I could sell for around $250k. After closing costs I'd probably clear $100k and if I could find 2 properties for around 150k each I could buy both with 25% down conventional investment loans. I also have some money saved up and am looking for another property anyway so I could possibly get 3 or more. And if I BRRRR'd them.... That's why I am considering selling. I like the cash flow too, but I could possibly turn that cash flow into more by making some moves.

I have a property that cash flows pretty well but all the properties in the area have jumped up in price. This seems like a prime opportunity to sell and move the equity to another market. That is a strategy that David Green describes in his Long Distance Investing book. I'm torn on the decision though. I only have the one rental at the moment so it is providing me the tax benefits, cash flow, and equity growth. Plus I refinanced it in March when rates were falling so that's another wrench. 

It comes back to the question about the golden goose. Do you sell it for a substantial profit and possibly buy 2 or 3 more golden geese? A bird in the hand is worth 2 in the bush. 

My gut says hold it, but I'm curious what you would do. And what are you doing with your rentals?