All Forum Posts by: Caroline Lowe

Hi Mark,

Enjoyed reading this thread as I am newer to the business and only have two sfh rental properties in Denver.  We may be moving for other reasons but in the same boat trying to figure out what to do.   Another thought we have had is to sell one of the properties with owner financing for the down payment for our trusted renters.   We could then have a portion of the equity to buy more properties in a new area but still getting cash flow for the next 5 to 10 years from the property.   Not to mention if it doesn't work out we still have the lien on the property.   Definitely will be challenging to start in a new area finding contractors and property managers to trust...but hopefully worth the cashflow in the end.   Still hard to leave a stable market with great rents.  

Good Luck in your journey to 100!

All of your advice is much appreciated.  

We are now considering holding both houses.  I talked to our lender this week and we could definitely pull a big chunk of equity out of the rental property.   Our next door neighbor at our primary house is able to property manage both houses if we decide to keep as it looks like we will be moving for husband's job.   We have a choice of Phoenix or Central Texas.   But, with family in Phoenix this area is more likely what we will choose.   We will likely rent for year to figure out where we want to live and during this time could also be searching for our 3 rental for some better cashflow.   

Anyhow, my lender is an investor as well and he is concerned with the size of the houses and maintenance and expenses that might acrue over time being out of state (i.e. fixing garbage disposal, gates, cutting tree limbs that break during winter that my husband usually does).   Does this usually even out with the tax right off?   

To Dorothy Ma

The rental built in the 80s. In good condition. We bought as a flip during the down market so it has been nicely updated. However, will need a new deck this spring. Also will need shingle repairs and painting some time in the next 5 years since in HOA. Neighborhood attracts families wanting to go to top rated schools.

Our single family home was built in '54.   It has also been updated around 2000ish.  A smaller house (1800sf) in good condition, but it is an old house. But very large property 1/2 acre with many large trees.  Would have to pay for maintenance to keep that up.  Walking and biking distance to Old town Littleton, lightrail, ACC.  IMO the area will be changing over in the next 2 to 5 years due to the influx of people to Denver and walkability.   

Fred

Will have to look into notes.  I hear they can be risky when you don't know what you are doing.  Also, considering skipping the properties, sell the two here and get involved in a hard money fund.  Anyone, had bad or good experiences here?

Thanks again everyone for your input!  

I am a new investor just starting out.  Fortunately, we already have a rental property but I really need advice on how to proceed.  My goal is to have at least 5 cashflow properties in the next five years.  Would love to be making $5000/month or more.   My husband has a great job but he travels too much and we would love to work at this together and free him of his job in five years time.   

We live in the hot Denver market-very high rents and high value in the sfh .  But, are thinking about moving to Phoenix or Texas (less travel for him)...this is not altogether necessary.  

We have one rental property that is in a mature neighborhood.  We can sell it now and make 100K and take out 170K to reinvest using 2 out of 5 year rule to avoid capital gains. Thinking Duplex, Fourplex or larger if can get in on a good deal. Or we can keep renting it for $900/month cashflow.  Our other property where we currently reside is in an emerging neighborhood (walking distance to an up and coming neighborhood) could be sold for a $60K profit this summer but we will have to pay capital gains since we will not have lived in the house for 2 years and we will be using that primary residence exclusion for our other home.  

I see the options on this house as... 

1.  sell and reinvest money into a house hack where we move

2.  rent until the house appreciates (the cashflow on this house will only be about $300)

3.  stay here until we reach the 2 year mark then rent for 2 years until we can use the primary residence exclusion again.    Is this worth it or better to use the money for a different investment property?  

I also would love to know what you think of keeping our rental property vs selling and using the money for a better cashflow property (and if this is possible in Phoenix or Texas--I am hearing it is but I would love to hear it from those of you who are experiences it!).