We bought our 4th property. Let me start by saying each property we have, we have purchased to live in with the minimum 3-5% (First 2 FHA and last 2 conventional....) We had to move for jobs so we just kept them and turned to rentals.

This 4th property was bought because I just had a baby, we have 3 dogs, and my spouse couldn’t do the commute from vancouver, WA so we bought a house in Beaverton, OR across from work. 9 months living here and it’s way too small and we need a real yard for the dogs- these homes are more like row houses with a small patch of gated soil in the front....

We only put 5% down so we will sell at a loss and rentals here are so cheap, if we rent we will take about $400 a month loss....I now stay at home with the baby and manage our properties- I have a real estate broker license so I can claim the loss....Question is- would it be better to leverage the funding and keep this house even with the negative cash flow or just sell it?

1. house #1 in alabama- fha- pmi comes off soon- profit $150

2. house #2- in round rock, tx-fha- new rules - pmi doesnt come off life of loan- currently managed by company because we had to leave for new job quickly- negative $300 - will cut by half when i manage property after lease

3. Townhouse, - Vancouver, WA- conventional- loss of $180 (due to hoa and pmi- will be about even once pmi comes off)

4. house #4- beaverton, OR...across from Nike- would be a loss of $400 or more

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Jay Hinrichs

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Lender
Lake Oswego OR Summerlin, NV

Jay Hinrichs

#1 All Forums Contributor

Lender
Lake Oswego OR Summerlin, NV

Replied December 15, 2019 07:51

Maybe you sell them all and regroup.. if you want rentals in the OR WA market SFR's are tough you will want to buy plex's or small multi those will cash flow with 20% down.. unless you buy a niche property .. and maybe your property across from Nike is just that.

I am thinking maybe you bought in that development straight out the front entrance to Nike the tall 3 story small lot project.. Maybe you set those up for long term stay when folks come into work at Nike for a short period of time.. so you furnish it etc. I bet it would cash flow then.