All Forum Posts by: Jim Piety

Quote from @Bill B.:

Is your plan to wait until the lease is over, kick out the tenant, make a few months of vacant payments,make all the repairs and replace everything worn out and then give a realtor 6% place it on the market for a homeowner?  Or are you assuming an investor will come in and pay more than you did and make money?

Hey Bill,

Since it was renovated before leasing, I don’t anticipate too much would need to be done. But the initial idea was to wait for the lease to end to put it on the market. 

I’m starting to realize it may be better to hold because even though I’m not making money, I’m not losing it either

@Rodney Sums @Michael Gansberg

Yes,I removed the maintenance and capex because it was recently renovated and everything is new. But I’ve re-added 5% maintenance to be more realistic. 

With the cash out refi, I used it to start a successful STR that is covering the losses. My plan with selling the property would be to reinvest into another STR.

I get that San Antonio on average is appreciating. But this specific neighborhood has a long ways to go. 

Nonetheless, I am starting to lean back toward holding since it’s not really costing me (yet), it is a low interest rate, and the high interest rate environment we are in would make it more difficult to generate the returns I want from the sale proceeds.

In what scenario would you say it’s better to sell? What information should I be looking for?

@JD Martin & @Denny Mears, that's what I'm leaning toward. I am not optimistic on the performance of this neighborhood

Quote from @Bill B.:

You haven’t even held it long enough for your first 20% rent increase. 

No, but with expenses going up along with it, that increase is blunted it. Maybe I go from $14/mo to $50-100/mo. I still have $30k left in the deal so it's a 4% CoC return.

Quote from @Nicholas L.:

@Jim Piety is holding it going to prevent you from continuing to invest and achieve your goals?

 I wouldn't necessarily say it's preventing me, but it is underperforming capital that I'd like to put to better use

Quote from @Rodney Sums:

Quote from @Jim Piety:

I purchased a fixer upper through a wholesaler in March 2021. After more repairs and expenses than expected, i could not sell the house for a profit. The house would not appraise. So instead, I refinanced, pulled out ~50% of my invested capital and rented it out. Since September, it has been breaking even. If it was located in a fast appreciating neighborhood, I’d be okay with the zero cashflow. However, I am thinking it is a better play to sell, get back most of my capital, suffer a small/minimal loss, and reinvest the cash into a different, faster appreciating market. 

Are there any other options I should I be considering? Should I sell or hold? Appreciate everyone’s advice!

 Share numbers 😊

You cash flow calculations 

Purchase price and cash in

How much you pulled out and at what cost

What its worth now as to see how much a loss you will take

Wha other investment you want to make with proceeds from sale and why it's better than what you have

 Here are the numbers: https://dealcheck.io/s/-Mj79q8...

Cashflow: 

Rent: $1095

Operating Expenses: $463

Loan Payment: $530

Cashflow: $14

Cash Invested: $61,015

Cash-out Refi (in Oct): $26,632

Remaining Cash in Deal: $34,383

Appraised for $127k when trying to sell, appraised $155 for refi.

Comps suggest can sell for $150-$155. If I sell for $155, that's a $2,500 LOSS but would provide me $30k in capital to reinvest.

I could wait for the property to appreciate but I'm not optimistic it will appreciate well. House is in a bad neighborhood.

I purchased a fixer upper through a wholesaler in March 2021. After more repairs and expenses than expected, i could not sell the house for a profit. The house would not appraise. So instead, I refinanced, pulled out ~50% of my invested capital and rented it out. Since September, it has been breaking even. If it was located in a fast appreciating neighborhood, I’d be okay with the zero cashflow. However, I am thinking it is a better play to sell, get back most of my capital, suffer a small/minimal loss, and reinvest the cash into a different, faster appreciating market. 

Are there any other options I should I be considering? Should I sell or hold? Appreciate everyone’s advice!

@Aki S. Who did you end up choosing?

Congrats @Eric Huang! I think the large acreage will be a great investment! Hopefully you plan to add more properties to add to the income. Have you heard of Kai Andrew? He's a big fan of the "land hack" method of generating wealth in real estate. Check out his youtube channel if you're interested.

Sounds like Michael was a great asset during your search. Considering we're investors from out of state, I am going to reach out to him. Thanks for the referral!

Originally posted by @Account Closed

 What I wonder is how you missed the "His & Hers" in the back yard

 LMAOOOOOO