All Forum Posts by: Richard Townsend

@Francisco Hernandez Before investing in PR, look into their inheritance laws (that is, if something happened to you). A friend of mine was going to invest there, but decided against it after learning about the restrictions the government places on how the property passes on.

@Frank Jiang Thank you.

@Ashish Acharya Thank you, that’s what I was hoping.

I rented out my primary residence for the past two years, but lived in it for the three years prior to that. The tenant has moved out, and now I am considering selling it.

Does the fact that it was recently a rental impact the capital gains exemption for homeowners of up to $250k ($500k if married)?

Previous event was well done. Lots of content plus plenty of time for networking!

@Dan Heuschele thanks for the detailed comments. If I sell now, it will have been a great investment. However, I was hoping hold onto it and use it as a springboard to repeat the process. But I haven’t seen much upward movement in the rents, and as far as appreciation, it has already appreciated a lot so I’m not counting on much more in the near future.

I don't want to get myself in the mindset of what I can't do, which is where I think I was headed. The main thing I'm getting from this conversation is that even if the repeat part of the BRRRR strategy hasn't come as easily as I'd hoped, there is still SOME equity that I can pull out, which gives me a starting point for the next property.

Thanks again.

Thank you all for the responses.

@Jason DiClemente thanks for clarifying. I agree that at this point it’s not a great rental due to the low return on equity. I’m happy with the appreciation, but price growth has slowed.

@Jack Inman that’s a good idea if I can find another property that makes enough of a return.

@Sean Carroll In the beginning I thought that was what I was doing. I was in at 80% when the rehab was completed and I was cash flow positive. It’s just not enough in this area to get to the last “R” - Repeat.

@Lee Ripma maybe like you and Jack said, I could pull out some of the equity and find another project that makes sense.

@Jason Snider yes, it might be time to sell. I’m watching the market trying to determine when the equity growth has slowed enough to pull the trigger.

@Ned Carey right, this property is located in California and even in a community where house prices are lower than the coastal areas, the ratio of rents to costs make it difficult to cash flow.

Thank you all!

Here's what I don't understand about the BRRR strategy. I purchased a house for $100,000 a couple years ago with 20% down, and now it is worth about $180,000. After all expenses it has positive cash flow of about $100 per month. There is plenty of equity "trapped" in the property, but if I were to refinance it out in order to purchase another property, I would end up with negative cash flow on the original one. That's what keeps me from purchasing a second property. What am I missing?

@Daniel Ricci Just wondering how the plan is working out? Did you find a place in Davie? Balancing medical school and investing ok?