All Forum Posts by: Brant Richardson

The numbers don't work and you walked away, nothing wrong with that.  Next price drop shoot them an offer that does work.  Don't let rejection bother you.  Dual listing agent was a good idea, she's already been dealing with this property for 10 months, I'm sure she's ready to get it done with double pay.  

As frustrating and stressful as it was you have 100-150k in equity and a 1.25% property that is freshly rehabbed.  That's pretty darn good for an out of state investor.  I hope you get some good tenants and the drama is over for a while.

If you live in a home for 2 out of the last 5 years you can sell it with out having to pay capital gains tax.  He is saying that if you are going to sell, then don't wait too long. 

How is it that if it sells now its a loss yet these tenants are willing to pay +$100k in two years?  I wouldn't get my hopes to high on that working out.  In the mean time $360 cash flow is a really nice income for a house you would otherwise have to sell at a loss.  Start reading investing books and listening to the BP podcasts.  Treat it like learning a second career for the next six months and you will accumulate a ton of knowledge.  

Check out this post on the forums "I'm selling my long term rentals and moving to the beach"

https://www.biggerpockets.com/forums/311/topics/700529-im-selling-my-long-term-rentals-and-buying-beach-property

I'm not sure how that 3% success rate was calculated.  Failures are probably based on unreasonable expectations as far as the timeline, we are an instant gratification culture.  Here in California all a person had to do is buy any typical 3/2 house, at full market value 30 years ago and keep making the mortgage payment, be it cash flow positive or cash flow negative, they'd call it a huge success right now.  I am sure the same is true if you bought right now.  Of course with some education you can do a lot better than that.

Why are you "already selling a property now"?

Right now I feel like I would need to stretch my parameters and settle for a barely okay deal to buy another unit.  With the possibility of a down turn I want a solidly good deal.  I plan to hold out for the cycle to turn unless I am surprised by a good deal.  So my real estate investing is stalled for the moment.  If the economy cycles every 8-10 years, its time.  This last week in particular the stock market has been very volatile which probably means nothing but makes me a little nervous.     I'm not worried enough to start selling off the real estate portfolio but my cash is waiting for an opportunity and I have a couple units that are free and clear waiting to be refinanced, quite a bit of opportunity sitting dormant.  I have been expecting the stock market to drop for over three years so obviously my crystal ball does not work.  

  If I added in the need to avoid taxes with a 1031 it would shift my need for a really good deal a little further toward settling for an okay deal, just run your number to figure out how much. 

It's absolutely normal.

If you haven't done it already, you should start another post, titled "Is this a good deal?" and list all your numbers for more experienced people to evaluate here on BP.  A mentor in your area like Jonathan Bombaci suggested would be far better but Bigger Pockets forums are helpful to point out if you are making any mistakes in your analysis. 

Do you live in the Granite City area or are you going to manage from a remote location?

Now would be a good time to start going to local REIA meetings to network with guys like Austin Gaines to find out who is their plumber, electrician, painter, handyman, gardener, appliance repair, HVAC etc. Have those names and numbers before you need them.

@George Gammon    Thank you for taking the time to write it all out a couple pages back.  Most of us know that inflation is good for real estate but have not really looked in depth at the numbers like you laid out.  Understanding in general is pretty simple, summed up something like "inflation is good because the value of money in the future will be worth less therefore the loan will be worth less.  Also, rent should go up while the loan payment stays the same so cash flow increases."   Great post, very informative.

Nerves of steel on multiple peoples part.  "Hey, I really need to borrow $450,000 for a week, could I rent it from you for $4,500?"