All Forum Posts by: Tiffany Vogel

Hi Julie!

I have no experience in commercial or development but I think the answer comes down to your goals.  If you have the time and bandwidth to take on this development then it might make sense to stick with it.  

Does thinking about this project make you feel good or fill you with dread? My husband and I have sold SFHs that had great long term potential but the history of problems left a bad taste in our mouths every time we had to talk about it or work on it.  Could you sell it and do a 1031 into a project that makes you feel more energized and excited?

Sometimes the answer isn't in the dollars but in your sanity and emotional wellbeing.

The goal of this group is Encouragement, Education, and Experience (EEE). This local group meets each month at the IHOP in Fayetteville, GA. There are investors of all ages and experience in attendance, and we'd love to have you!

*No fee if it's your 1st time in attendance. It's a whopping $5 after that.

I guess COC isn't the right metric in this scenario. Return on your equity would make sense. If you sold it could you make a higher return on your proceeds than the $50-$100 a month you would get on the home?

What is your Cash on Cash return for the property if you keep it? Could you find another property closer to home or in another market that would have a higher COC return and generate more income on your capital and keep your wife happy?

@Alicia Marks

Nothing currently but early on I had problems with being treated differently than my male counterparts. I fortunately invest with my husband so he was able to step in when I was being treated unfairly . I didn't need him to fight those battles but having him there allowed me to focus on the bigger picture and not get stressed about these situations. Now we only work with people who treat us both equally and with respect but it took a long time to build our team.

Personally I am going to wait until the big banks start pulling their lines of credit before making a move. We have a HELOC with a small credit union so I'm thinking they will wait for BoA and WF to move before doing anything. If we lost access to the remaining credit it wouldn't have a significant impact on our strategy so it's a risk I'm willing to take.

If you need the cash to make deals happen and/or have a HELOC with a big bank I'd consider pulling the funds and loaning them to another investor (assuming you can't find a deal in the immediate term). I recently wrapped up a loan to an investor friend for a flip and was paid back in under 3 months so it doesn't have to be a long term loan.

We could earn more than the interest we pay on the HELOC by doing this and profit the spread but have too many other things going on to make it a priority. I would avoid putting the funds in a savings account or something similar because you'll wind up paying more in interest than you receive on the account but if you need the funds to make future deals happen then the cost might be worth it. I think it all comes down to your goals, investing strategy, and what you need in the next 12 months to get there.

I agree with Coury's comment.  There are some great lenders out there who can give you the cash you need now and keep the property as a longer term investment.  Depending on your current financing situation it seems like you might be better off taking the $50k proceeds and investing in something closer to home that could generate more than $50-$100/month.

My husband and I invest together and have a podcast discussing investing mindset.  We have an episode about getting your spouse on board that might have some great tips for talking through it with your wife.  We don't make any money off the podcast so this isn't a sales pitch, just hopefully something that will help you.

Have you considered doing AirBnb on the 2BD to have some positive cash flow?  

I agree with Doniel that it depends on your goals. If you don't need the immediate cash flow it might be a good deal for you. Do you include any kind of repairs and vacancy reserves in your numbers or is the $4,600-$5,000 just the PITI payment?

I completely agree with you Shauna.  My husband and I were in a co-ed mastermind group for a year.  It was great but after I had our son I had a hard time in the group because my priorities shifted from being work focused to full time mom mode.  I didn't want to spend a week away from my newborn and the environment wasn't great for bringing him along.  I am now expecting my second child so it really isn't feasible for me to be in a traditional for several more years.

Being a female investor has very different challenges that most men will never experience.  I have had lenders only respond to emails from my husband even though I have a Master's degree in Finance and he knows very little about our loans. 

I'm in the process of starting a mastermind group for women/moms that will include families/kids.  My plan is to host the semiannual retreats at kid friendly places (like Great Wolf Lodge) so that the dads or other family can play with the kiddos while the moms are in morning meetings and spend the afternoons/evenings with our families.  Yes, this does ignore probably 90% of the market because it is so specialized but I know I need a group of women/moms and I know I'm not the only one.  Juggling work and family is incredibly hard especially with little kids but it is possible and I want to do it with strong women by my side.

Hi Michael,

Are you experienced with home repairs or do you have someone you trust who is? We took on a 1900's triplex early on in our career and have had a lot of surprise issues due to the age of the home. My husband is very handy and did most of our repairs but we still spent close to $20,000 and that didn't include any of the big capital ex we have had to replace over the last 3 years (including roof, chimney removal, HVAC, big tree removal, foundation repair, etc.)Ours wasn't well maintained by the previous owner so we were able to get much higher rents after improving the home and achieved a very successful BRRRR with it. I worry $20,000 might not be enough if there are hidden repair costs that aren't initially obvious.

I'd recommend getting the house under contract at a price you are comfortable with and doing a thorough inspection to ensure your rehab numbers are accurate. At the end of the day, I think you have to decide what cash on cash you're willing to accept. For us we had aggressive goals and very little capital so our target was an aggressive 20%+ COC. What COC and cash flow per door do you need to reach your goals? Don't accept a low return just because you have a deal with positive cash flow. Is it worth having this money tied to this deal or would it make more sense to find another deal with a higher COC return?