All Forum Posts by: Brock W.

Welcome Andrew,

I hope you only commute to Phoenix in the winter!

Brock

Welcome from another Zonie.

Brock

Hello BP!

My name is Brock, I live in Arizona. I found BP accidentally one day by Googling 'cap rate'.  Then I downloaded the pod casts and finally signed up.

I've lived in the Phoenix area most of my life. I became a REI in 2010. I asked my wife "Hey, how about we buy another house while the prices are low?" I didn't know much beyond that, but it was a start. A couple months later, we owned a townhouse.

We know have 3 SFH rentals:

• The townhouse
• Our old residence (we moved in 2011)
• Another SFH out of town in Central AZ

Without going into to much detail yet, we don't make a lot of cashflow.

After reading BP, I realized how much I don't know. I figure I can learn here from the people who went before. I need to see how to make my current operation more profitable, and grow it as well.

Regards,

Brock

George,

No I didn't mean it that way. Sorry for any ambiguity. Of course your house will still have value if you choose to rent it. 

I meant that if you take option 2, the equity in the house is only an unrealized gain. You are forgoing the $70K to try and make $200/month.

My opinion is that selling now is a very low risk way to realize that gain, which can then be put to more productive use in other properties.

-Brock

@George M.

I look at the options this way:

1. You sell the house and net $70K (with a tax advantage)

2. You rent it and maybe net $200/month. In which case your theoretical break-even point is 29 years.

IMO, option 1 is much better. I'd take the $70K and buy better investment properties.

-Brock