Sell rental with positive cash flow to invest in more properties

[Michael Abernathy]

Hello everyone,

A quick down and dirty about myself. I live in Jacksonville, FL., work in IT and am currently finishing up my MBA. I have a rental property in Virginia Beach, VA that I bought over ten years ago. For the last few months I have been doing a lot of reading and investigating the foreclosure market in my area. The auctions are done online and properties are listed in advance. The probablem is that you need cash on hand to purchase. I know there are a lot of things to watch out for when buying foreclosures, damage, liens, taxes, etc... but I think there is also money to be made if one is careful.

I rent out my place in Va Beach for $1,250/month.  My mortgage is around $700 and I pay a property manager 10%.  So if nothing breaks I make around $425/month.  I owe around $100K on the place and have a load with a 3.375 interest rate.  I could probably sell it for around $200K.  After all the fees I should walk away with around $85K.

The question is do I just buckle down and save to purchase my first foreclosure.  Do I take an equity loan out on my rental.  Or do I just sell it.

[Account Closed]

If you are going to sell your property, you should consider a Tax Deferred Exchange to save on taxes.

If you going to get into this investing thing, you should learn, I mean really learn the many negotiating tips and creative finance techniques out there. I always consider leverage even if I have the money to invest. Been doing it now for a very long time.

Call if you need some ideas on the many ways to control real estate.

Wishing you good luck.

Charles