All Forum Posts by: Austin Harley

@John Underwood... thanks for the response!  I contacted a local realtor about selling the property because I saw that she had sold a very similar property in the neighborhood for $149k. After talking at length, we both agreed that $130k was a reasonable expectation for mine, so after fixing some minor issues, missing out on a few months rent, her commission and capital gains, I came up with a conservative $100k profit to spend.

One thing she did mention was about how she had so many investors that would be interested because they wanted to do the same thing I was doing... buying in a nice area and making some cash flow.  You sort of mentioned the same thing indirectly buy talking about 'seasoning' the note and selling it to another investor.

This makes me think I'm an idiot for not following your first comment... 'if it ain't broke, don't fix it'.

I'm only pulled in the other direction because I know that most investors that run their operation like a business would leverage their equity to purchase more properties... since I can't leverage it via mortgage, I thought the smart thing would be to sell and buy properties that could be leveraged in the future.

So, considering the current economy and real estate market... would you hang on until the situation 'needed' to be fixed, or switch tracks immediately and double-down?

Thanks for your time and consideration!!! 

Currently it nearly pays for my primary residence in another state, which is mortgaged at $1100/mo at 4.125% and has about $75k in equity. But... I'm thinking about selling it and putting the money down on two single-family rental homes closer to me that should bring a cash-flow of $350 each after the mortgages are paid.

My rental is a paid-off '75 doublewide that consistently rents for $1k/month. It can't be refinanced or mortgaged since it's pre-HUD, but should easily sell for $100k cash.

I could replace it for $100k and then I would be able to rent it for $1.5k or sell for about $220k. My rent increase would essentially cover the payments for the replacement, and the increase in sales value would still yield about the same profit.

What should I do? Keep it, replace it with new mobile, or sell it to buy two stick-built homes closer to me?

Thanks!