All Forum Posts by: Cameron Marmon

Hey folks, I am hoping to get some thoughts on if I should I sell my investment property or hold on to it.

I purchased the SFR in January of 2015 for $252.5K. In August 2017, it appraised for $316K. Due to the age, area, and the fact it is a 4 bed/3 bath, I think I can now get $325K+ for it. So I would get $100Kish in cash if do I sell and the gain would be tax free since I lived in it for 2 out of the last 5 years.

I leased the home in January of 2018 for $1,750/month. This is below market and my fault because I did not get the property available in time. When the lease ends, my tenant will be moving out and I could potentially get $2K - $2.1K in rent. However, my current mortgage payment plus HOA dues is $2,015/month, which will be going up slightly next year due to taxes and insurance. So I am looking at possibly a breakeven at best, though I know that won't be the case. Also, the finish out on the home is premium thus not ideal for a rental. If something does get damaged it will be expensive to fix.

I surprisingly struggled to find a qualified tenant. Could have been due to the time I got it to market, but I get the feeling this price point makes for a tough rental. So I will likely have to cover at least one mortgage payment, maybe two, due to the time it will take to prep the home and find a tenant.

Overall, the home currently does not pay for itself, likely won’t next year when the lease comes up, I will likely have to cover the mortgage for at least 1 month to get it re-leased, I’ll have to pay about $1200 to the agent to lease it, I won’t generate true cash flow, and the AC just went out so I am looking at a temporary fix until next year or replacing the whole thing now for about $4,600.

I think I know the answer to this question, but I'd like to get y'alls thoughts.

Thank you!

Thank you, Bruce. After looking at a few in the price range I had in mind I have to agree, it may not be the best route for my situation. 

Just my opinion, but I think it would be hard to apply a class rating to an entire city due to most cities having a mix of all class types. 

More great thoughts. Thank you folks!

Thank you very much, Andrew. That definitely gives me more to consider. 

Hi everyone!

I have been interested in some of the affordable C and D class condos in the North Dallas area. There are a few that I can purchase with cash and if priced right the numbers make sense for me.

I have read some of the general thoughts and pro's and con's of condo investing. However, I was hoping to get more applicable thoughts from you locals.

I will admit, though the units I have identified do cash flow enough for my needs, I am concerned about the appreciation component of condo's in that area.

Thank you for your thoughts!

I have done some searching, but I did not find the answer I was looking for on this topic. 

Lets just say I decide to set aside $300/month for 12 months and I show it as an expense on the P&L. 

Now it is tax time!

Is it proper for me to report an expense of $300/month on the P&L to build the CapEx Reserve or is CapEx something that is considered in an analysis to guess at cash flow, but not actually expensed unless something happens?

I suppose I am not confused about the importance or a particular method for CapEx. I am confused on how to account for it on the financials and if it is okay to count it as a monthly expense, especially if no CapEx event occurs.

I personally have and like American Home Shield. However, as previously mentioned, read the fine print as I think they offer separate plans for personal residences versus investment properties. 

Thank you, Bruce. That is definitely an interesting approach haha.