All Forum Posts by: Troy Forney

It happens.  Probably as good as around the colleges by you.  

$3500. a year.

Very nice suggestion. I like that. Will have to look at rates for a HELOC on a rental.

I am sitting at the top of the fence.  Your replies are going to help me decide what I think I should do,  which is list it for rent also.  See which happens first.  

Thanks for the reply. I guess the only thing to stop me from putting it up for rent is the fact that after I refi it, I will still have 25 to 30K in it. Not the best ROI. I will have 40K minimum in equity in it, so I guess its not bad. I just had higher hopes. My other properties are returning $3500. /year and much better ROI 12 to 14% . If I keep it, I will have less cash to buy the next one, but deals are getting harder to find.

I have purchased 5 properties in the last 2 years. Of those 5 I have completed one successfully with the BRRRR strategy. We currently have 3 solid rentals. The last two were intended to be be done as a BRRRR's, however, after taking a mortgage on the property and seeing that these properties were not renting for what I had anticipated, I decided to sell them. The first of the two is sold. I have one remaining. It is currently on the market and sold, however, the buyer backed out after the home inspector found some discoloration (was not tested for mold) in the attic. I agreed to have entire roof replaced with the wood that was discolored also. So anyway, I am having the entire roof replaced and corrected. (the original owner did the roof and insulation incorrectly) So long story short. I am in all cash $80,000. on this house. If I sell it, I will make about $5000. after taxes. Plus get all my money back to start again. (Learning a lesson on this one) Or I can take a mortgage on it for about $55,000. and rent it out and make about $2200. a year after all is paid and reserves set aside and accounting for 8% vacancy. Also I have accounted for when the homestead comes off and taxes go up. I can also state it is in a high C neighborhood. History shows appreciation as been minimal, but a very stable market. Think that's all the info. So whats everyone think? Thanks in advance for your valued advise.

I have purchased 5 properties in the last 2 years. Of those 5 I have completed one successfully with the BRRRR strategy. We currently have 3 solid rentals. The last two were intended to be be done as a BRRRR's, however, after taking a mortgage on the property and seeing that these properties were not renting for what I had anticipated, I decided to sell them. The first of the two is sold. I have one remaining. It is currently on the market and sold, however, the buyer backed out after the home inspector found some discoloration (was not tested for mold) in the attic. I agreed to have entire roof replaced with the wood that was discolored also. So anyway, I am having the entire roof replaced and corrected. (the original owner did the roof and insulation incorrectly) So long story short. I am in all cash $80,000. on this house. If I sell it, I will make about $5000. after taxes. Plus get all my money back to start again. (Learning a lesson on this one) Or I can take a mortgage on it for about $55,000. and rent it out and make about $2200. a year after all is paid and reserves set aside and accounting for 8% vacancy. Also I have accounted for when the homestead comes off and taxes go up. I can also state it is in a high C neighborhood. History shows appreciation as been minimal, but a very stable market. Think that's all the info. So whats everyone think? Thanks in advance for your valued advise.

Yes, I do understand supply and demand, and supply is short and demand high.  I remember people saying in 2006 this is unsustainable and 18 to 24 months later it took a dive.  With many reporting the stock market is due for a big correction soon, don't you think that housing would see a small correction also?  Hypothetical of course.  Just playing devils advocate to those who say the market is artificially stimulated and many real estate buyers are foreign investors and hedge funds looking for yield.

So whats the general thought on the housing market? How much longer do you all see these prices continuing to go up.  It is getting more difficult as time passes to support some of these values buyers are paying.  Yes, yes I know their is limited inventory.  At some point prices will out pace incomes.   I have seen Fred Foldvarys predictions on the market cycle, with growth being from 2012 to 2022. As investors do you all see this lasting that long.  As an appraiser, I have my doubts.  What is your opinion?

Are you currently buying buy and hold properties or waiting till market cools off?