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Updated about 3 years ago on . Most recent reply

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34
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Justin Mathews
  • Investor
6
Votes |
34
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Advice needed: Sell stock or find a partner? GO!

Justin Mathews
  • Investor
Posted

So here is the scenario: I have a deal under contract for 3 duplexes in a row that are turnkey and already flipped. They will cashflow $4900 a month and net around $1800 a month after all expenses, capx, etc. It will require $70,000 down to close on a 15 year 4.1% loan fixed. I like the debt structure and timeframe for the loan. I like the cashflow as it will give me about a 29% cash on cash return in the first year. This is way better than the stock market. The 6 units are already rented with fresh 1 year leases as well that I have vetted and like.

My question is whether I should reallocate my limited resources by selling some positions in the market to fund the 70k or seek a loan partner for the down stroke? 

I do not have cash to burn so this is a significant reallocation decision. There is enough cashflow to share with a partner but why do that when I don't have to this time? Next time I will need to partner to get the downstroke or just wait and save until I have it to buy another property.

Advice? Go! ...

Most Popular Reply

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5,037
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4,678
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Taylor L.
  • Rental Property Investor
  • RVA
4,678
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5,037
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Taylor L.
  • Rental Property Investor
  • RVA
Replied

Do you know someone who would do that deal with you? How would you structure the deal with an outside investor involved? I think it would help you to have an apples to apples comparison, looking at the numbers both ways. You know your numbers without an investor, but what do they look like with an investor, and how do you ultimately exit that investor from their investment?

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