All Forum Posts by: Brian Sullivan

@Tim Herman

 This isn't an option I'm familiar with, but will look into it to get myself familiar with it. I like how Joe's straight an to the point and definitely a wealth of knowledge.

@Michael Hakes

I haven't thought of this yet. I'll bring this up to my realtor though.

@Dan Schweit  

It's a custom one-off build from a local builder.

I know this is a bad deal for me to have done. I went into it with no plan and no knowledge. I want to take the next few months to keep calculating, reading and listening till I'm ready to get back in the rental property game. Come back even stronger and learn from this.

@Ryan Jopson

@Joe Villeneuve  

I understand what you mean by equity now. 

So what I need to do is mission plan just as I would for ops in the military. Just do it with how I want to execute my real estate and financial goals. I need to work on this and I will focus on this through the rest of my current deployment. Thank you.

@Jaysen Medhurst ,

1. There may be a way out or at least a possible deal that can be made. Waiting on paperwork to be filed. No counting on this though with my decision.

2. So you're saying that it'd be smarter to hold it if I wouldn't lose over 11k over the life of having it? However short or long that would be.

3. It would take us dumping more money into it to make it Airbnb ready. Thing is we're on the other side of the intercoastal waterway and it doesn't plot us when people search the beach city. So it might not get the first few page selections. I know Airbnb is changing some things so this could be a possibility to examine again.

4. No, the 11k would impede my momentum more than $100 a month loss. 

I must say this is incredible what this forum brings. It's done exactly what I thought it would and helping my brain listen to other thoughts and knowledge, and mix it with what I have. Thank you Jaysen.

@Joe Villeneuve  

This statement puts you miles ahead of many investors. The problem is, in 30 years, can you be sure what the property will be worth?

No, you can't be positive on what anything is going to be worth in the future. Through answering this I see your point or at  least one I came to. Waiting for 30 yrs for a solid profit when other properties could have got me there sooner without having to wait for just appreciation.

How did you arrive at this number?

It's the amount that we'd lose from escrow, granite we upgraded to and the cabinets. Actually, now that I think about this more and reexamine the numbers, They did include an allotment budget. which would put the loss at just under 9k.

Where's the equity?   

Wouldn't there be equity from our down payment and then the monthly payments towards the principle and interest?

How did you come up with "1 property a year" scenario?...and why? 

That's the goal I set out for us to make as a baseline. My mission statement, 5 year and 10 year goals for us has yet to be finalized. I wanted to have ten properties by year ten. I think we can do better but want to keep this manageable too.

Bad, very bad, path to take. What you may not realize, is the visible paper losses you see, are hiding (in plain sight), compounding losses from many things...such as lost opportunities.

I know. I'm just disappointed in myself for getting this far. I have to let some people down for pulling out of this deal which is supposed to close next week. It doesn't match up with what I want to be able for us to cash flow and how I'd like us to grow.

Do you have any advice on how to word that email to all parties involved? Thank you for taking the time to help me realize things from someone else's point of view.

Hello BP community,

Ok, I posted on here 4 months ago asking about my first rental property I was looking at purchasing. I'm back on here to admit that I went into real estate investing with no education about real estate investing and no plan on how where I was going or how to get there. I'm now under contract to purchase said property and I'm having second thoughts. I'm having second thoughts because before I was running on hopium and now I've started to educate myself on real estate investing. I've done this through the bigger pockets podcasts and through a couple of books I've read since then. 

Before I ask my question here are the details. The property wouldn't start to make COCROI until year 5 (1.18%) and year 10 (5.07%) start to make some better cash. The cost to purchase the property (it's a brand new build) is 289,000 w/ 15% down and it's located in Florida close to the beach. My thoughts, before my light and continuing education, were if someone paid the mortgage and insurance I was using the property as a retirement fund that I would sell in 30yrs. I didn't put into account all the CapEx that would later come down the road. Now with both our incomes we wouldn't be stretched thin between the house we live in and this one but it does take away from money we could invest in future properties. Now if we left this deal we'd be leaving 11k on the table but we wouldn't have this property holding us back from future buys. If we bought it we'd have equity in the property and would be able to use that in the future.

My question is should I go through with this purchase or pop smoke and bail? I've been writing and formulating our goals (my fiance and mine) for real estate investing and this doesn't allow for us to maximize our 1 property a year at least every year. We'd have to worry about the possibility of dumping money into this possible purchase. I've come to this forum hoping that I could make sense of my choices from the BP community. Ultimately the choice is mine, but I'd hate to not use guidance from the best real estate forum out there. I know there are probably other details that might be needed and I'll produce those to help paint the investment picture for you. Thank you all in advance.

Respectfully,

Sully

@Cheryl Vargas The long term rental would be shy of the 1%. I'm justifying not making that number in the short term with it being new and not having to fix anything major in the foreseeable future. I like it for its ease into renting and location. That helps a lot with me being gone for half the year. Rent should go up over the long term with the property cost staying the same to eventually get to and past that 1% mark.