All Forum Posts by: Erin Genz

Colorado Springs is a great place but finding something where the numbers make sense is difficult because the prices are so high right now.  Unless you want something in a super questionable area of town, good luck.  We're going through the process of trying to find a property right now and I have to admit, it's been frustrating. 

Hi Ryan,

There's a local real estate group that meets on the first and third Tuesdays of every month at Third Space Coffee.  I've only been a few times but everyone is really nice and welcoming.  I've owned properties here since 2006 (just have a couple rentals and haven't gotten into anything crazier than that) but I'll give you what insight I have if you'd like.  I'm going to be doing my first 1031 exchange in the springtime so I'm still learning too!

Interesting thread and I'm actually following all the logic in @Dave Foster's post so I must be learning!  This certainly makes my little one-to-one house 1031 seem trivial.  Nothing to add to the education piece but I'll definitely stay engaged with this conversation.

My biggest problem I have right now as an REI is imposter syndrome. I have owned two rentals for 10 years. Technically, I am decently successful at this. But we're thinking about making a change and I'm finding that I just don't feel like I know enough or am dedicated enough to be "successful". Is there such a thing as a casual investor anymore? I don't need thousands of properties and millions of dollars. I'd just like to make my money work for me instead of me working for it.

@Doug Shapiro, thanks for the reply!  I hadn't realized there were folks who exclusively focus on 1031s (which in hindsight, duh!) so I'll definitely try to find someone in the local area to speak with regarding pros and cons.

@Dave Foster, you've nailed my issue precisely.  The only debt we have is the mortgages (2 rentals and our primary residence) so we're really battling psychology on whether it feels better to have zero debt moving forward or the cash flow from continuing to own rentals.  Unfortunately the one we're going to sell hasn't been our primary for 10 years and the other one, which does meet the criteria, is a much better rental for us.  Hence the quandry!  

A little clarifying question on the 1031, do you have to buy something priced as high or higher than what you're exchanging or do you just need the financed piece to be at least as large?  The house is probably going to sell for $270k-ish but the mortgage is down around $110k. 

Thanks again!

Hello all,

I have two rental properties in Colorado Springs that were both our primary residence before becoming rentals.  We've had one of the rentals for 10 years and after owning the property for 15 years, the frustration level has outpaced the value to me so I thought I'd toss out a question to the community.  We expect to get about $150k out of the property when we sell.

Do we take the cap gains hit, pay off the mortgage on the second rental ($80k) to increase cash flow on that property and do something else with the remainder (pay down our mortgage, invest, etc.)

or

Do we 1031 exchange into something else?  If we go this route, I would love any insight from others' experiences since we've never actually purchased a property as a rental before. 

We're working toward financial independence so the question really comes down to increased cash flow vs. decreased liabilities.  All opinions welcome!

Thanks for organizing this @Colin Smith.  I should be able to come for the first time to the 10/2 meeting too, @Joan Phillips!  Really looking forward to meeting others in the community.  We've got two rentals but we kind of came into investing sideways so I'm enjoying learning more.