In 2019 I purchased a Duplex in New Orleans for $219,000, I was able to refinance during Covid to a 3% interest rate. After I left NOLA, I was able to rent each side for $1,295 through a property manager taking 10%. The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle. I’m on the verge of firing my property manager due to 7 months this year of at least one unit being vacant. This year I paid around 7k out of pocket which I’m attributing mostly to her error and my naivity. The owed amount is around $183,000 and the estimated value is around $250,000 the last time I checked. I just saw today that I might finally have a second tenant placed (Both to pay $1250) but I’d still like to fire her and hire someone with guarantees around tenant placement and that charges a lower percentage.

In 2022 I purchased a 3-bed/2-bath condo outside San Diego for $535,000 with intentions to buy and hold. Interest rate of 5.25%, monthly mortgage of $3,600, and high HOA fees ($450). The projected rental income wouldn't cover the mortgage and HOA at this time. The condo has some issues: a faulty breaker box, old and not well-sealed windows, and uneven floors. The current value is estimated at $555,000, and I've paid down $22,000. I'll be living here for another 1.5 years, I'll be able to pay down about another $10k. I am considering selling due to negative cash flow. If prices stay the same and I were to rent, I would be out of pocket for the entire HOA fee. I jumped into this property hoping to house hack/buy and hold after I transfer out of the area.

I had some hubris after my first investment and am still naïve in the investing world. I’m continually doing my best to educate myself more and learn from my mistakes. I have about 30k right now mostly in a HYSA and am planning to just hang on, I afford everything with my salary and roommates. I have no debt aside from the properties and regular monthly credit card debt. In a year I’ll need to make some decisions.

From what I see my options consist of:

1. Trying to sell my SD condo as is.

2. Repairing/improving to sell. (Maybe put a HELOC on the NOLA duplex to afford the SD condo repairs?)

3. Hoping (SD) rental amounts have increased and renting it out/refinance if able/eating the cost.

4. Take out a HELOC on my NOLA property and invest it into another property after learning more about buying an investment property, not just house hacking.

5. Sell both and quit.

I work full-time; I'm trying but I know there are gaps in my knowledge. With some humility, I'd like to say it's keeping the finances separated/organized and liability protections, or everyone's favorite question… do I need an LLC? This is messy. If you were me, what would you do? What was your greatest resource when starting?

San Diego, California

2 Votes