All Forum Posts by: Soh Tanaka

I don't know what you are getting in rent, but my guess is maybe $4k? Wild guess. If you run the math, you'll quickly realize that selling it and buying more lower priced rental properties with 30-year mortgage will result in better cash flow and probably accumulate equity faster.

@Jeshua Patrick - Is moving back to the townhouse a valid option?

I'm not an accountant, but depending on how many years you lived in the town home prior to renting it out, if I'm not mistaken, you may be able to sell it without paying the capital gain tax. I like to somewhat follow Dave Ramsey's advice, until "bad" debts are paid off. I don't know if you currently own or rent, but it looks like it's better to just sell it, and use the proceeds to pay off all the loan and debt. The interest you are paying on your credit card and the growth you are missing out by not having your money in the 401k account is what you should worry about more than the potential appreciation of your rental, IMO.

It sounds like working with a turnkey company would be a good option. $35 k would be enough for may of the properties turnkey companies sell.

I don't know if a non-agent have an access to it, but www.costsfirst.com can pretty accurately predict the total cost. It has an app, too.

It's better to think an umbrella policy and LLC as different tools. It's not that having one means you don't need the other one. If you have a lot of assets and/or equity, then considering LLC becomes a good idea. If you don't have much assets and/or equity, then you may not need an LLC yet. I'm not an attorney by the way.

What does the property management agreement say?

I'm pretty sure somewhere in the mortgage document says if you transfer the deed, the bank could (technically) ask you to pay off the loan. In reality, no one knows of those who got a call from the bank and had to pay off. It's extremely rare, if ever happens. People do it all the time. 

I used them and had a good experience. 

@Marc Appel - Holding for another 5-years is like having and paying full time employees, but they only work an hour or two a day. It's better than nothing, buy you are paying too much. When I did 1031 exchange, my income went up 3 times. If Boston is too expensive, you can check out turnkey companies in different states. I don't know anything about Boston, but it sounds like @Lien Vuong know a lot about the area, so connecting with a person like her might be another option.