All Forum Posts by: Nick Poe

They were great to talk with. In fact, they were super appreciate that I called to make sure everything was kosher. 

@Ben Haab, appreciate that feeback very much! The home is in R2 and a duplex is allowable. Chatted with city zoning about it. I will have to split the address, the previous guy who owned the property and rented it out did not take care of that. Otherwise, it's good to go. 

I have chewed on the cap gains tax that we'd be paying. I suppose I could always use a 1031 exchange when the time comes, if I don't need the liquid cash. And frankly, paying a long term cap gains decades from now might not be so bad if I've juiced the thing for monthly cash flow for 30 years. 

Thank you very much for your feedback. Local help is the best help.

@James Bausch Thank you for that perspective. Honestly I’m looking at growing the portfolio. I’m never gonna be a mogul or build an empire-but I’d like to build a comfy equity in several properties and have enough cash flow from properties to retire with confidence one day. I’m focused on the long term but at the same time I don’t want to be crippled or overly leveraged I’m the short term. 

We usually are in Europe for at least a month out of the year every year, so a property management company may be a good solution. Who do you recommend? 

@James Bausch thank you! I’ve met dean a couple times. Will check out his meet up thank you! 

Did anything every come of this? I'm based out of Warsaw and would love a meetup.

This is an excellent point, thank you for your input! I'll certainly be taking this into account.

Frank thank you! This gives me a lot to think about. I'm leaning toward holding, and you're right—flips tie up time in a very intense way. Also, your input about tenant tendencies helps alot. Very, very much appreciated. 

Nick

A year and a half ago, wife and I bought a home for $89,000 in Northern Indiana on a 5% down conventional mortgage. We currently owe 80,000 on the note. At closing the place was already worth $114,000...that's before we renovated. Now that the reno is finished (spent $6,000 and did the work myself), it's likely that it is worth $140,000 based on comps. 

The big question is this, do we sell in July (after the 2 year cap gains clearing) and walk away with our $60K in equity? 

Or do we rent it out? The downstairs of the house could be one unit probably earning $850 per month and the upstairs could be a separate unit (it has a separate kitchen, bath, 1 bath and living) for $550 per month. Almost meets the 2% rule. My mortgage, utilities (shared), maintenance reserves, and water would be $1,000 per month. 

So it's either walk away with $60 grand cash in July, or take on a couple of renters and cashflow $400 while gaining more equity. 

Bear in mind I run book consulting business and travel quite a lot for work, so managing renters is not necessarily the most appealing thought, but I'm also open to prioritizing for the right fiscal reasons. Happily married and have one daughter with another kid on the way. Taking equity and upgrading to the "dream home" is tempting, that's for sure. But not sure if it's the best long term strategy. 

Thanks all!

Nick
Northern Indiana