All Forum Posts by: Josh Raymond

Update for fun on this...

I ended up not selling...I plan to now however. 

I doubled down on Denver and purchased another single family home in a good suburb neighborhood built in the 60's. I did an 11 month rent back with the current owners that owned the property for 20 years. They have been extremely nice (and amazing "tenants") and we were able to strike a deal that made sense for everyone. 

Plan is to sell my current townhome (listing in July). With rising interest rates we will see where the market is at that point but we just had one with an unfinished basement (which we do not have) sell for 590k! So hopefully the market holds for us by the time we list. 

I did a cash out refi on the condo and took all my money out less 15K for improvements  @ 3.625% (wow that is feeling low now in hindsight with a condo) that remodel helped us increase the rent by $375/month. We are cash flowing about $500/month on that unit with property manager in place.  

Current plan of 2022:

Sell Denver townhome, hopefully get a good price net anywhere from $200-$250K tax free. Use this to redeploy in a small multi family forcing myself to grow and throw a chunk into a 529 plan for my daughter. 

Keep condo for now, after stabilizing first 4-plex and continuing to save look into doing 1031 with condo into another 4-plex for 8 units total. This would then pay for our mortgage in Denver at 3% fixed debt that I will hold long term as the family home.

I will let you know if I do a good job at executing later this year. 

@Dave Foster

That makes a lot of sense! I have been getting frustrated getting rejected on 4-plex deals but looking at the numbers short of the market continuing to appreciate they don't make sense to offer any more.

I am going to stay focused on making offers but not break down just to make a move and grow. A lot of temptation out there when others are growing bigger faster. 

Thank you everyone! I really appreciate all of the responses. 

As always in Real Estate and Investing there is no one size fits all. Have any of you personally used the personal exclusion to jump to the next home you can add value in, live for a bit, and then repeat the process? Is that a PITA as you get older and have a family?

Also seems like it would increase my personal monthly bill. Right now I live for net $1300 a month. 

I am not against the combo of selling the paid off condo and adding the cash on hand to take on a bigger project via 1031 but that would be a big jump for me. I was picturing taking down some 4-plexes before I get to the bigger projects. 

I have connections on the western side of the state where cash flow makes a bit more sense. (This is where my condo is) 

I always pictured a balance of holding for appreciation here (Denver) and cash flow and modest appreciation over there. I don't like to give myself to many options because it becomes analysis paralysis. 

Tough to know the best direction to head with the current market. 

@Dare Adebonojo

Already did cash out refi on the place to 80% LTV.

@Matt M.

I do not have a funnel for off market deals here. I do have my RE license though and come across people looking to sell and could see a deal coming from this for my next residence as a possibility. I do have funnels of off market deals on the western slope but it is a smaller market so less volume. 

@Jaron Walling

I don't love the idea of being all in or completely out. It already sucks as is sitting on cash getting 0.6% interest. I do see the point though and have contemplated this selling and then sitting in an apartment waiting for a crash sounds rough though. 

@Dave Foster

When you say patience do you mean it is better to hold off and find the right deal at my age? Opportunity cost is starting to bother me as we have been in a market that people have been rewarded for taking lots of leveraged risk. I am sitting very comfortable at this point and eager to expand...

Hello BP Community,

How do you evaluate selling a property that has appreciated 6 figures vs. keeping it as a rental? 

Purchased a place to live in 2014 297K, could sell for $415,000 in todays market within a month. This was just riding a market wave (Denver) it was our first home purchase didn't even know what house hacking was but we rented out a bedroom for the first couple years then have just been enjoying since. 

My dilemma is I still like the idea of long term rentals in Denver and the appreciation aspect but looking at just COC and CAP rate if I purchased today the returns are awful.

I would net $150 a month because I would manage. The home is a new build so not huge capex for a while. Pay down $500 a month of mortgage. And of course any potential appreciation. 

The tax free gain is what makes me want to sell but I also want to grow in R.E. and selling feels like I am going the opposite direction. 

Anyone else in this situation? I also personally am struggling to find other deals. I have a paid off small condo I want to 1031 to something bigger and cash for another down payment here in the Denver market. 

I am actively making offers. 

Goals: 

Grow overall portfolio. Have a cash flow portfolio, I have long term stock investment for retirement, I want to grow another income stream with R.E. well ahead of 60 (I am 30). 

Thanks! 

Josh