All Forum Posts by: Stephen Williams

I don’t have a problem with the price and the rent, and especially the made up argument about equity in a deal. Simply take out a heloc, boom, normal equity in a deal, so ignore that argument. 

But…if you’re leaving the state consider this question. If you were living in Florida would you buy this property as a rental from there? If not, probably sell. 

But…what I consider important you left out. What did you pay for this property?  This is your chance to sell without paying taxes. If you’re only talking $50k in appreciation since you bought it, fine. But if it’s up $100 or $200k that’s $15-$30k in taxes you’re saving. How long will it take the rental to make that money just so you can be even with selling today?

I don’t think you have to give the house away. But do some math on the deal. Maybe talk to a PM about how much rent they could get and what you would bet in a Hans off deal. IF you have less than $50k in appreciation. 

 Pensacola FL is a great place! Very relaxed with an amazing beach. Hope you love it here!!!

@Stephen Williams welcome to BP! Sell it. I don't know if this is a good offer but in the end having that much cash tied up in equity you have to ask if you could earn more on that cash elsewhere. Comparatively speaking the lot size and 200 square foot more isn't going to bring you in much more rent unless you have an extra bedroom. There is also a risk is having all the cash in one rental. I am sure someone will give you cash on cash and return on investment numbers but the only way I could see this as a good investment is if it makes a great STR with higher numbers and you are hedging your bets on inflation.

@stephen when and where are you moving to FL? This is a tough choice and I would need more details on your goals and intents and timelines to make a better suggestion. One thing to question is have you considered doing an STR on that? You might be able to pull in 1.5-3x that much in monthly rent, and if so, I would keep. I'm from the west (SLC) and cities like that are going to continue to blow up over the next 10 years. There's several strategies you could take here, including unlocking some of that equity rather than outright selling. Again, just depends on the details.

I would have to agree with more doors less risk. I’ve lived in Tacoma and I know how expensive Seattle can be. I would do good market research for where you want to go in Florida and make sure the numbers make sense with active listing on the market now. If the city you choose to live in isn’t as investor friendly I’d consider smaller cities near where you plan to retire. We have purchased house hacked and sold in each place we have lived now the main focus is to develop a portfolio of properties ranging from A-C class in a lower taxed market in an area I’m familiar with. The vacancy for such a large expensive property deters me vs a property with a mortgage of equal value with 4-6 unit. Hope that’s helpful depending on where your headed in Florida I may know some realtors if you need assistance. 

@Stephen Williams welcome to BP! Sell it. I don't know if this is a good offer but in the end having that much cash tied up in equity you have to ask if you could earn more on that cash elsewhere. Comparatively speaking the lot size and 200 square foot more isn't going to bring you in much more rent unless you have an extra bedroom. There is also a risk is having all the cash in one rental. I am sure someone will give you cash on cash and return on investment numbers but the only way I could see this as a good investment is if it makes a great STR with higher numbers and you are hedging your bets on inflation.