All Forum Posts by: Krista Roodzant

Although this sounds very professional and appealing, be warned, out-of-state investors! Holton-Wise is not an “investor-friendly” management company, in my experience. I have been trying to extricate myself from their services since March and have yet to receive my tenant’s security deposits. This has been an incredibly frustrating and expensive learning experience! Understand that where there is slick marketing hype, there may be troubles lurking. 

@Grant D - This post appears to be quite old, but I am in the situation of needing to find a PM in the same areas you were looking in.  My current PM, who shall remain nameless at this point because they are holding my money hostage, is NOT working in my best interests.  I wonder if you've found a company that you would recommend?

@Account Closed, that is new information to me. Thank you. I should also speak to my CPA it sounds like. 

Thanks @Alex Johnson, for that really sad, yet eye-opening scenario!  You're right, not worth trying to get a loan on that equity.

@Dave Foster, I'd love to set up a time to speak about this with you.  I'll PM you.

Has anyone used a HELOC on their investment properties in a situation like this?

@Dave Foster, I appreciate knowing the fees are that low and that if I initiate the process and cannot find a good replacement, I don't have to continue.  The costs to sell and the fix-up expenses will have to be paid out-of-pocket and cannot be recouped after the sale with a 1031 as well, so those are the unknowns that give me pause.

@Thomas 

@Thomas S., I agree it is speculation to keep it, but it is in California...

That being said, I am currently purchasing out-of-state for income and ROI, so this property is an anomaly for the rest of my growing portfolio.

Thanks, both of you, for your insights!

Not sure if this CA property purchased in 2011 is a keeper or if I should 1031 exchange it this summer when the lease is up. Some stats: Purchased for $148,000 and refinanced in 2015 with a cash out that was used to pay off consumer debt (prior to my education in REI!). Currently rented for $1665 to a tenant who has been there for 5 years and pays on time with minimal fuss (self-managed). Owe $200,000 with an appraised value at the time of the refinance of $300,000. I'm assuming the value has gone up a bit since then, but want to be conservative in my numbers.

As I see it I have 3 options:

1)  Do nothing and continue breaking even in regards to cashflow and slowly build up more equity.

2) Try to get a HELOC on it to access the equity. Purchase cash flowing properties in out of state markets where I am currently investing.

3)  Sell it and do a 1031 exchange.

There are pros and cons to each option.  I've been leaning toward the 1031 exchange, but haven't ever done one before and am concerned with the additional costs I haven't even considered.  I would have to put in approximately $15,000 to do some needed updates for it to get top dollar in this neighborhood and am not sure if that is worth it as well.  The thing I keep hearing in my head is the advice from more seasoned investors who regret ever selling a property...

Any and all advice is appreciated!

Krista

@ Ali Boone thanks for the input. Maybe I’m not asking it correctly. I’ll speak with my accountant about it and try to get it clarified. 

Thanks @John Leavelle, I'm going to be emailing her next!

Maybe this has been posted before, but I'm not finding it. After speaking with our accountant, it seems like we need to be accumulating a portfolio to help offset the W-2 earnings. How do you calculate the depreciation received and the passive losses into your ROI calculations? It seems that those issues should play a role in what kinds of returns I should be looking for. Hope this question makes sense!