All Forum Posts by: Bobby Maleki

Hello everyone- I own a rental house - which was bought in dec 2014- it has been rented to different renters this entire time, while i was living away. The previous tenants just moved out and I tried to list it for rent in middle of august, but since i have been away from the house, it is a 1975 built in a very nice neighborbood very quiet and a beautiful large backyard which is one of my selling points. The house is in serious need of remodeling, I have been speaking to contractors about the kitchen and bathroom. Since this is a rental property i am not looking to go through the roof with remodel upgrardes but i do want to upgrade it to make it presentable and comfortable to future tentants, wanted to see if there is anyone who can give me some advice. I have been going back and forth if i should put quartz white countertops in the kitchen and bathrooms, some people tell me quartz white does stain one being my sister who recently got quartz in her house- but store owners tell me no quartz doesnt stain and it is the most durable. some people tell me the 2cm is the best and most popular size , but i believe the 3cm is better since it is thicker and can possibly last longer. I really had no idea a simple remodel would be so confusing and a lot of these contractors are asking so much money since it is austin. any help or feedback would be greatly appreciated. thank you in advance. 

thank you so much for all the informative reply to my question. I really appreciate it. I think it would be a better bet if I kept the house and rented it out at $500 negative cash flow per month. that is 6k a year. lets say its worth 420k at the moment, with a 5 percent rate of appreciation my house will appreciate 21k per year. in addition i am getting 15K in the interest expense deducted from my taxes. so a 5 year spread will be 21k x 5 = 105k - 6k per year loss = 30k.  this leaves me with 75k. plus the 15k interest expense per year x 5 = 75k.  so total in 5 years i will be ahead 150K at the minimum if i keep the house and rent it out at $500 negative cash flow per month.  i think it is a better idea to keep it and rent out the house. also the area balcones woods right by the domain is still in expansion, in 5 years from now a house by the domain with .34 land will be worth much more than the 5% appreciation per year, at the worst case i will be up 100K. i dont understand why everyone has suggested i sell the house.  i am more interested in the appreciation than the cash flow, the cash flow doesnt help me much. 

I bought a house in Balcones Woods. Right in the middle of Domain & the Arboretum. The house is in a really good location. Its a 3 bedroom 2 bathroom with a huge backyard. I bought it for 385k in dec 2014. I lived in it a few months and then decided for me since i am only 1 person it is too much house and it being in a family area not the right fit for me. Everyone is selling me to keep the house and rent it out. It has negative cash flow if i rent it out now about $400-$500 a month estimation. The domain is expanding and becoming the second downtown austin slowly. Is it better if i rent it out. With negative cash flow or sell it and move on. I have been emotionally attached to the house since i am a first time home buyer at 4% interest rate. If i sell it right now ill probablt get 430k minus the realtor commission. I am not sure if i should keep the house. I can afford the negative cash flow and i dont mind managing the tenants. I dont see myself living in the house anytime soon since i am single with no wife and no kids. I would appreciate anyone with experience to give me their feedback. If i sell the house i would put it in an investment that yields about 10% per year return but on 50k. But the house is 430k and continues to appreciate. Please help me im seriously confused. I dont want to regret my decision. Thank you in advance.