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Updated over 7 years ago on . Most recent reply

User Stats

59
Posts
28
Votes
Thomas P.
  • Agent/Investor
  • Knoxville, TN
28
Votes |
59
Posts

What would you do in this SFR scenario?

Thomas P.
  • Agent/Investor
  • Knoxville, TN
Posted

We love to hear from those smarter than we are!  What would you do?

You have 17 SFR rentals. You are tired of managing them yourself, but to hire a property manager would hit the cash flow bottom line too much for you to stomach. You decide to sell 5 for a net profit of $131,000 to lessen the workload. What do you do with the $131,000 assuming you want to stay in the SFR space?

Do you:

A: Tuck the cash away ready to ponce on the next downturn 

B: Buy more flips while you wait 

C: Use the equity to pay down/off, let's say 2 of the remaining rentals to replace the cash flow you lost and take out a business line of credit to fund future flips/acquisition

D. An altogether different and brilliant strategy you thought of all by yourself!  Defend your answer!

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