All Forum Posts by: Joe B.

Thank you all!

Hi all,

I have had a death in the family and will be inheriting a 2 bed 2 bath townhome. I am looking for advice on what you all think the best approach would be.

Some back story, mortgage, HOA, tax, is ~$1k a month. Still owe $150k on the loan at a 3.25% rate. I currently also own 1 SFH already that I rent out.

Recent comps in the subdivision show them selling for 230k-235k, and not to be naïve, those were updated (flooring, kitchen, bathroom, paint) compared to this one I have. If listed I would shoot for $220-225k. 

Options:

1) sell it. Would net say ~60k after expenses. Can hold that money and use it to buy a bigger property to rent out. Hopefully some good deals coming on later in the year, would love a multifamily property. 

2) rent it. Market rates show them for $1400. $400 in cash flow a month, pay the property down a little more, then potentially sell in the future. 

3) renovate and rent. I’d love to do flooring, paint, bathroom, kitchen. Optimistic after that I can get $1500 in rent. Little more cash flow, that would add up in a few year to pay off the renovations 

4) renovate and sell. As mentioned others in the area sold for 230-235k, can renovate, then sell for top dollar. 

Part of me wants to renovate and rent, but having that 60k net after selling could be great for a bigger property in the future. 

What would you all do? 

I currently own 1 SFH. Bought it in 2018, house hacked it, and now live with my girlfriend. That house now gives $700 month in positive cash flow. 4 years later however, I am still at that one unit. Now, I am ready to jump on a multifamily that comes across my eye. I would love a 4-plex, however if the numbers work, I will be open to something smaller.

I study everything RE related religiously, whether podcasts, books and much more. Every now and then I will come across a podcast in which a person owns 50+ units just in their mid 20s which is impressive! My question is, what strategy are they using to make that achievable? With a generous w2 job and numerous side hustles, I still only own 1. Am I missing something here?

Nice I will be there

I’m in Wilmington down the street. If I was in your situation, 4plex 100%

Sorry to hear but what happened but with that being said experience is the best teacher and sounds like you learned a lot here! Best of luck to you in the future

One is a business that you manage, one isnt. 

The average person should be doing both, but lean towards stocks.

@Richard Smith I personally wouldn’t. If they have a problem with it I’m sure you can find someone who doesn’t

Excellent! I am the on the same boat, I want to be an investor as well. Remember, always easier to get that loan when you have a w2

Just out of curiosity why do you think that? I found many of the clients I work with are mainly available in the evening, or weekends.