What would you do? Portfolio Strategy Suggestions?

[Allen Wu]

BP Investors,

I need your input. Here is a breakdown of my current portfolio. Where else would you invest? Should I hold and start paying off debt or go for more? Should I buy actual investment properties or go in as a LP through syndication? I’m pretty diversified now, and confused on where to scale up.

Current Portfolio (Actual Properties Owned)

1) Los Angeles: 1 bedroom and 1 bath condo. Breaking even on cash flow. 100% up in equity.

2) Los Angeles: 2 bedroom and 2.5 bath condo. Slightly making cash flow. 100% up in equity.

3) San Antonio: 3 bedroom and 2 bath. 20% up in equity and cash flowing.

4) San Antonio: same as above

5) Cape Coral: duplex. 2 bed and 2 bath each side. Cash flowing and 20% up in equity.

Reit and Other

1) Fundrise: Around 50k invested in equity and debt investment funds

2) Variable Annuity: 25k in vanguard reit index

[Henry Clark]

Age dependent, will go with your younger.

Get a gauge on your risk assessment.  So you understand how your "decision", might impact your current positions, or how changes in your current positions might impact your risk assessment.

1.  Stock market and annuity.  Since your young, you can take a 50% hit.  Your numbers are small enough to not worry about, pulling some off the table.

2.  Use and Excel spreadsheet and list above. 

3. Add columns for Debt,

4.  Column for monthly P/I payment/expenses, 

5.  On your current investments decide if you can do value add and if it is worth it.  Add another Bedroom or Bathroom.

6. Decide if you want to scale up by moving to MFH. Since it is relatively easy to Sale your SFH or some of them, do a reverse 1031. Buy your MFH first, then sale however many SFH's you need to. Get all set to sell SFH before you buy the MFH.

7.  Stress test your Equity positions, analyze what it would take for you to go underwater on your positions.  Use 65% or 70% collateralization as a basis, before you got called by your finance companies.

8.  Stress test your cashflow.  On paper start vacating your properties.  What would it take for you to go negative cashflow without tapping into your payroll or Stock investments.

9. Stress test your job. The loss of it, would it have any impact on your REI positions? Looks like location of your job has no impact. How about cashflow?

Not really recommending your next financial step.  But do a Risk assessment to reduce the stress and focus your decision.  If your in a "Safe" position relative to your economic outlook, then push it more.  If you feel to "Exposed" based on your economic outlook, then strengthen your current position first, before either hitting a pause or pushing your next investment strategy.