bougnt 5plex 375k , should I sell for $450k if $600 positive CASH

[Jason Graves]

Quick flip w $75k profit or keep $600 month positive CashFlow ? Street car complete in 3.5 yrs great location...in KS MO

[Todd Powell]

@Jason Graves The 5 plex is in Lebanon, Or and I would call it a B- type property. All older folks and a 1970s single story building. We paid $375K with seller giving us $4000 towards closing. We did a 4.25% commercial loan for first 3 years, and then adjusts after that with 10 year loan period before refi. I have the tenants now paying their garbage bill and we raised rents. The nice part about this building is that each unit is separately metered for water and sewer so this cost in directly our tenants. So, after mortgage, ins, taxes, and expenses (fully occupied), we are netting $2000 a month. Is that a good deal?

[David Walkotten]

Add together principal pay down, rent increase, and equity build.... and you will wish you kept it. Refinance it in a year if you want some cash for something else. 

[Jonathan R McLaughlin]

Public transportation like you describe coming in 3.5 years almost always raises property values and usually greatly increases rental profits and stability therefore resale value. With positive cash flow in the meantime I’d say it’s worth waiting to excercise the option to sell. You will likely take a hit on the interest reset but if you are at all a “hold it” guy this one seems like a good asset.

[Jason Graves]

@Todd Powell No that’s an amazing deal. If you find anything else that good let me know.

[Jason Graves]

@Jason Graves

What’s to say thanks for the advice.

I decided to keep the 5 plex and happy i did. The #s keep better and better in KS MO.

I’m under contract for 2 more building with appox 25 doors each.

[Jason Graves]

@Todd Powell

Where are you buying now?

[Ron Peterson]

@Jason Graves

Invest in a properties with your end game already in mind. You maybe a flipper but come across a propery it just makes since to hold. Develop a strategy that works for where you are financially right now, taking into considerstion the geographic area that you are investing in.