All Forum Posts by: Cameron K.

I haven't been paying much attention to markets other than Denver, CO Springs, and a few towns in Texas. I was just reading about the potential for Tulsa and Boise. Sounds like you are investing in another area with a lot of growth. :)

Thanks. I agree having an exit strategy is wise. We will hold for now. Until now, the exit strategy is to see if the condo market gets hotter, add value to units, and scout for better cash flow properties.

 I think the lot is less than 6500 sqft. 

 I did already take a heloc out on it. It wasn't cheap. I have been looking for a better opportunity and haven't found one yet. Definitely not in Denver. 

 Ha! Yes, sometimes I think regret and worry are the two emotions involved in real estate investing. :) 

We want to keep it forever. The hundreds (thousands) of condos and apartments going in everywhere make me wonder if the values of condos will decrease and boom, all that equity is gone along with the admittedly nice rent. Thank you for the input!

Good Morning!

About 10 years ago we purchased a quad-plex in Denver. The location is good near 32nd and Tejon. The developers who sold it to us had already legally separated the units into condos. They had an existing HOA, a condo association, and it was set up to be sold separately. But with the market getting crazy in 2007/2008 they sold to us at $140k for each unit. We decided to house hack and live in one of the units. At the time they got maybe $900 for rent a piece.

Fast forward to 2018 and this property is a cash machine! We can get $1800 a month in rent for these units, (One is an executive rental) which includes rare off-street parking. The monthly income is near $9k, and after our mortgage it is about $6k. After expenses about $5k. Recently we got a HELOC for another investment building borrowed off the equity in this quad-plex. They appraised at $350k each! We owe about $415k on the building so it is making very good cash flow, but with the market in Denver, I am wondering about the value of condos in the future.

Here's the question. Should we hold this property or sell to cash in on the high of appreciation? It generates $5k in income after expenses which has been wonderful.  But we often wonder if we shouldn't just move our cash to another highly appreciating market. In Denver, a lot of condos are being built and it makes us wonder if the demand for condos will go down and so will rents and equity. I've been managing our few multifamily properties and rental demand seems to be waning. Another 6-plex near us sold for 2M. 

We've tossed around the ideas of

• paying off this property as quick as possible and keeping it forever;
• of selling and buying a dream home in the foothills; 
• OR selling and buying a commercial property; 
• OR a large multifamily unit in with the income to cover a full time property manager;
• OR HELOC the equity to invest more;
• Cash out to access the equity but risk the cash flow.

What would you do? 

I bought an audiobook from Audible. Brandon Turner mentioned biggerpockets.com about 500 times. :)

If you had the choice to pull equity (cash) out of rental properties and put the cash into your personal home, would you do it? We are looking to purchase more properties and the terms on the HELOC for an investment property are really expensive. We may have the option to cash out enough of our rental to pay off our personal home, then use the personal home in the future to HELOC at better rates.

Thoughts?

Thanks! It definitely is looking good to hold on to it. Maybe make a few repairs over the next few years. I feel like the rental market is softening up in Denver, (Having been a property manager for my own properties for the last 8 years) which makes me wonder if it's worth it to hold on to these properties at all. 

 First Bank. It's a portfolio product. 3 year draw period, prime + 2(6.75% currently) and 1% origination.