All Forum Posts by: Richard Abarca
Richard Abarca has started 1 posts and replied 3 times.
Post: Keep and refi or Sell SFH in Memphis
- hollister, ca
- Posts 3
- Votes 1
Quote from @Jordan Spaans:
Was the vacancy due to renovations? That seems like a long time for a unit to be vacant. I would say look at the numbers comparing what you would reasonably expect future performance on this property to be vs. an investment in Ohio for the next several years. Then, do what makes the most sense financially without getting too much emotions involved, numbers don't lie :)
it was part of it, but mostly gross missmanagement on my part. had my first kid within weeks of closing and i put too much trust into the first property management company finding comfort in their large client base of content landlords.
thanks, i appreciate the feedback.
Post: Keep and refi or Sell SFH in Memphis
- hollister, ca
- Posts 3
- Votes 1
Quote from @Andrew Syrios:
I'm usually in favor or holding rentals whenever possible, but if you're going to have to leave money into it after refinance and also it will have a negative cash flow, I would lean toward selling.
thanks I'm thinking the same
Post: Keep and refi or Sell SFH in Memphis
- hollister, ca
- Posts 3
- Votes 1
Hi All,
I am on the fence of what to do with a 3x1 SFH in the Berclair area of Memphis, TN. This was my first deal that I bought in September of last year with the intention of BRRRRing it and original numbers worked out to be a 10% CoC with just a few thousand left in the deal. Since then, lots of growing pains have come along with it including: firing the first property management company, going way over budget for the rehab, vacancy 8 of the last 10 months, doubling of interest rates since i started.
In order to get top dollar for rental rates I recently added central air and cooling to the property which is part of the reason for going over budget. Originally purchased the property for 100k with an ARV of around 155k with 10k of rehab.. Cut to 10 months and I have about 145k into it including closing and holding costs.
Should I:
Cut bait and sell and accept a loss - take that money and look for a better deal near my other rental in Ohio
or
Keep, cash out refi at double the rate i had originally expected and accept negative cashflow when budgeting for capex, repairs, and vacancy and hope to break even after selling in 3-5 years banking on appreciation of 3% per year.