Taking a Fresh Look At My Properties

[Ron Angel]

Hi Friends!

I am a "relatively new" investor who in a sense is just starting out. I actually have two SFR that I bought over 10 years ago when I was in the military, long before I ever discovered BP and all of the amazing education available through it. Therefore, when I purchased those homes I really had no idea what I was doing and did not even know the concept of "evaluating a deal" existed. Looking back, the investments were pretty terrible by any reasonable standards. Over the course of the past decade I had negative cash flow, but I thought I was alright because I most mostly "breaking even" and building up equity as I went along.

Fast forward to today, I've read several books from the BP bookstore, attended webinars, and read dozens of posts and blog articles. So I find myself faced with a decision about whether to keep holding the two properties or to unload them and take the cash and reinvest. 

To give everyone a picture of the financials, neither of the properties cashflow right now, but if I were to refinance them (without pulling any equity out), they would cashflow a little over $100 each month after all expenses are taken into account. Another plus is that I have an amazing property manager and have had excellent tenants. The properties are near a military base, so I get turnover every couple of years as people come and go, but the vacancy is typically <1 month in between. As for cons, I haven't seen any rent appreciation the entire time I've held these properties, and the property values have fluctuated, but currently they are about what I paid for them. 

So what do I do? Or what are the considerations that I should look at to help me decide?

[Nate Bell]

@Ron Angel

I don’t often entirely agree with Joe’s harsh, binary assessments, but in this case I do. Cut your losses, optimize your potential.