Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

40
Posts
7
Votes
James Defazio
  • Rental Property Investor
  • Huron, OH
7
Votes |
40
Posts

Advice on next business move?

James Defazio
  • Rental Property Investor
  • Huron, OH
Posted

I currently own 4 properties. 2 single family houses and 2 duplexes. All of them cash flow positive. The first Property I ever bought was a little 2 bedroom property in a nice area. It is paid off and has never seen a vacant month in 4 years. The problem with it is the rent I am not sure if it is worth it to keep the money locked up in it. I get $750 a month in rent but after tax and insurance I probably only make about $625 a month. Is it worth it to keep 100k locked up in a property that only makes like 7500 a year? 7.5% return on my money doesn't get me excited and that's if the entire year goes by without having to spend a dime on repairs (doubtful). My problem is, since 2 of my properties are paid off and the one that we live in we Rent on short term rental and make about 25k a year on top of the mortgage, we have made our business our full time job. This is fine and dandy until we tell our mortgage broker that we are self employed...what a nightmare. 

Should we look into a 1031 exchange on a commercial loan for our under performing property? We aren't able to do a cash out refi yet until we can show 2 years of Airbnb income on taxes (that will happen this coming September) should we just continue to save up money and pay off debt (our car loan) until we can qualify for a new loan and just continue to rent out the underperforming Property? What do you all think? 

Loading replies...