All Forum Posts by: Derek Hanners

@Kevin Rodriguez $150/m is low, I agree. And my cash flow usually is ate up by some repair every year (I suspect my property manager isn't on the "up and up"). It's a single family property outside a military base and that $150/m doesn't include CapEx. If It goes vacant I eat the mortgage at $1450/m. I am getting faster and faster paydown though now that I am 15 years into the loan. It hurts to sell the property now that more of my payments are going towards the principle and not interest.

@Frank Geiger I have about $100k in it. Which will diminish if I sell because of Realtor fees and closing costs.

My only concern with selling it at this point is the loss of principle paydown momentum the house now has. I the first half of the loan I was paying the bank mostly interest, now most of my payment (from my tenants) is going to principle. So my equity is climbing at a way faster rate than it was at the beginning of the loan.

Hi Everyone, 

I've had a long distance property that I've been renting out for about 6 years now (Seattle area).

I'm wanting to ramp up my Real Estate investing with something more close to my current location (Ohio area).

My problem is that the property's numbers seem almost too good to be true and I think I'm missing something? See if someone can help me make sense of this.

My 3 options are:

1) To keep the long distance property, which is RARELY vacant and brings in about $150/month over the cost of the mortgage and property management. It's also a newer house (Built in 2007? I think?), so maintenance costs aren't too bad.

2) Sell it and use the proceeds to put down payments on a property(ies) closer to where I currently live.

3) Keep the long distance property and leverage it's equity (HELOC probably) to fund the down payments on the properties I want here locally.

For the last month or two my only path was to sell the remote one and use the money to buy local properties. But after some consideration I feel like I might be "shooting myself in the foot" by selling a house that has payments going to more principle than interest? To be clear, I am worried about selling a property that gains more and more equity momentum than it had in the past. Is this even a valid consideration?

So my questions are:

1) Is where you are in the loan repayment a consideration? Now that my tenants are paying more principle than interest would it be disadvantageous to sell?

and 2) Which of the 3 options (or any other) would you consider if in my shoes?

Thanks for your time!

I hope the wall of text wasn't too big of a deterrent for most.

Derek

Brandon,

Yes, I was able to talk to a few people. My CPA has advised I wait until I can sell my out of state property and use those proceeds to buy the local property I'm interested in.

I have tenants in there until June 1st, so I have a little bit of a wait but not too long! Excited to be part of this community though!

Hello,

I have one rental out of state (Washington State) and am looking to start buying more here in Columbus. I am looking for recommendations for RE agents that work well with investors, a good Property Management company and a CPA with knowledge in Real Estate to help guide me as I start up. 

Thanks!