All Forum Posts by: Mike Lee

Plenty of people are investing in Central Florida, including myself.

This is easy. No.

His investment strategy is multifamily out of state, not local. He originally thought he would invest in Atlanta, but changed his mind.

I did that with a condo I owned years ago myself. 

Apologies Jaron. It is a B neighborhood townhome in the suburbs of Atlanta. He owes 80k, and could sell for close to 240 this summer. Association fees have increased 20% since his purchase and that is eating into his cashflow. 

He owes 129k on his current primary, unaware of any other details. That was enough for me to share some high level guidance.

Having coffee over the weekend with a younger investor in Atlanta, I had a question posed that could be worth discussion here. This young man is just starting out in his investing journey, turning his former primary residence into a rental in 2018. 

He has since changed his investment strategy, focusing on small multifamily instead of townhomes, and at the same time he now has roughly 160k in equity in the townhome. 

He is not a fan of the HOA or their rising fees, and was strongly considering selling while the market is hot, and using the equity to roll into a new property or pay off his current primary residence.

He has received some conflicting advice from his realtor, a fellow investor, and his family. What say you?

Would you sell an investment property that is cash flowing simply because it no longer fits your strategy?

Another vote for a Heloc. Once you get the first deal under your belt, you can go back to this established credit line and rinse/repeat. A cash out refi or HELOAN don't offer those options. 

Syracuse and Kansas City are two markets that came up recently in a chat with a California based investor I met. He was looking at both markets, and had 2 properties under contract I believe in KC.

Made that mistake one time, never again. Instead of pet odor, it was the renters body odor that ruined a loveseat.

1. Did you buy that property with the intent to one day leverage it as a buy & hold income producing asset?

2. If you sold it, could you find a new primary residence that would be sufficient to your standard of living?

In this market there are no right or wrong answers. I know someone right now in a similar boat. She purchased a home and has nearly 70k equity, and is thinking of selling. The property is a townhome and the rise HOA costs plus the fact she wants to invest exclusively in MF even if it means being an OOS landlord made the decision clear to her.

Decide what your investment business model will be. There are resources on this site for virtually any strategy you can imagine.