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Updated almost 9 years ago on . Most recent reply

User Stats

84
Posts
31
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Nik Krohn
  • Investor
  • Woodland Hills, UT
31
Votes |
84
Posts

AZ Property Not Producing (ADVICE PLEASE)

Nik Krohn
  • Investor
  • Woodland Hills, UT
Posted

I have done 5 deals in the last 5 years and it has been a home run every time except for my first out of state property. 

I purchased a property through a "wholesaler" in AZ. The property looked great but I clearly did not do enough due diligence on the project. I have had the property for 2.5 years and the value has not gone up.

Here are the details of the property:

Purchase Price in Nov 2013: $131k

Current Rent: $845/mo

I pay 8% for property management

Zillow zestament: $131k

Trulia estimate: $139k

I make a little money every month (pretty much a wash) but I am mostly looking on advice if I should just try to cash out (hopefully 20k after realtor fees) and roll that into a better producing property.

If this was your property, what would you do?

NOTE: I just signed a 1 year lease in Feb with a tenant

Most Popular Reply

User Stats

4,876
Posts
2,466
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Jaysen Medhurst
  • Rental Property Investor
  • Greenwich, CT
2,466
Votes |
4,876
Posts
Jaysen Medhurst
  • Rental Property Investor
  • Greenwich, CT
Replied

@Nik Krohn, unless there's good chance of strong appreciation, what are you waiting for? Sell! You're not "breaking even," you're losing money. You could be putting that $20k towards another investment. An index fund would be yielding $1400/year (~7%) a good REI maybe $3-4k.

Maybe your new tenant is interested in buying...

  • Jaysen Medhurst
  • Loading replies...