All Forum Posts by: Felisha Derrick

Jonathon Small, thank you for your thought out reply! I’ve recently talked to a property manager and a realtor for my San Diego property and found that going with a manager would put me in the hole 1k a month MINIMUM. However, if I sell I won’t have to pay out of pocket, in my 2.5 years I have paid down and my property has appreciated enough so that after all repairs the realtor estimates I’ll make 50k. I’m far more conservative with the estimate because I’m worried about repairs. I still think I’ll walk away with some money in my pocket and some lessons learned about walk through and rushing to purchase. 

For the NOLA duplex I have not yet fired her, I’m worried about the unknown but her lack of communication is forcing me into that action. I have shopped for a new manager. 

Hiring a financial advisor is something I still have not done as well, I’m in the same boat I was in when I posted. This will be an important step for me so I need to carve out the time. 

Lastly, I want to build wealth. I’m not entirely sure what I’m doing but I care, seek council, and read to try to give my best effort. I’d like to continue with real estate investing despite its challenges. Being a military member house hacking is the easiest way but I’m also open to learning new methods and if at all possible learning from others’ mistakes. 

 I'm very proud of my New Orleans property; it will be tough for me to sell it one day. I do truly want to hold on to it and I think I'm just nervous to change my manager, though I don't feel it is going as well as I'd like it to. Tonight I'm going to look over my statements versus our interactions and finally make the call. Negotiate with her or end our contract. Thank you so much for your insights, I already have a company in mind but if things go south you may hear from me sooner than not. 

This is spectacular insight, it's silly for me to imagine that with zero down I'm going to cash flow in 4 years. For some reason, this was out of my mind's grasp. Thank you! It may be worth it for me to hold and take a small loss monthly for what the appreciation will do. 

In 2019 I purchased a Duplex in New Orleans for $219,000, I was able to refinance during Covid to a 3% interest rate. After I left NOLA, I was able to rent each side for $1,295 through a property manager taking 10%. The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle. I’m on the verge of firing my property manager due to 7 months this year of at least one unit being vacant. This year I paid around 7k out of pocket which I’m attributing mostly to her error and my naivity. The owed amount is around $183,000 and the estimated value is around $250,000 the last time I checked. I just saw today that I might finally have a second tenant placed (Both to pay $1250) but I’d still like to fire her and hire someone with guarantees around tenant placement and that charges a lower percentage.

In 2022 I purchased a 3-bed/2-bath condo outside San Diego for $535,000 with intentions to buy and hold. Interest rate of 5.25%, monthly mortgage of $3,600, and high HOA fees ($450). The projected rental income wouldn't cover the mortgage and HOA at this time. The condo has some issues: a faulty breaker box, old and not well-sealed windows, and uneven floors. The current value is estimated at $555,000, and I've paid down $22,000. I'll be living here for another 1.5 years, I'll be able to pay down about another $10k. I am considering selling due to negative cash flow. If prices stay the same and I were to rent, I would be out of pocket for the entire HOA fee. I jumped into this property hoping to house hack/buy and hold after I transfer out of the area.

I had some hubris after my first investment and am still naïve in the investing world. I’m continually doing my best to educate myself more and learn from my mistakes. I have about 30k right now mostly in a HYSA and am planning to just hang on, I afford everything with my salary and roommates. I have no debt aside from the properties and regular monthly credit card debt. In a year I’ll need to make some decisions.

From what I see my options consist of:

1. Trying to sell my SD condo as is.

2. Repairing/improving to sell. (Maybe put a HELOC on the NOLA duplex to afford the SD condo repairs?)

3. Hoping (SD) rental amounts have increased and renting it out/refinance if able/eating the cost.

4. Take out a HELOC on my NOLA property and invest it into another property after learning more about buying an investment property, not just house hacking.

5. Sell both and quit.

I work full-time; I'm trying but I know there are gaps in my knowledge. With some humility, I'd like to say it's keeping the finances separated/organized and liability protections, or everyone's favorite question… do I need an LLC? This is messy. If you were me, what would you do? What was your greatest resource when starting?