All Forum Posts by: Terry Z.

@John Kutrzeba, if I were you, I would sell it. Whatever you put in is sunk cost, so it should not be included in your decision making process. What you need to calculate is how much more you are going to put into the deal and how much cash flow you are expecting to get from now on. Don't forget to put your stress level and your wife's into the equation. Thinking about potential health cost associated with long term stress and lack of sleep. If you can find similar cash on cash return in a different market with better quality houses, I would go to that market instead

@Travis C. About $280k. Yea, I am inclined to get out and invest in somewhere making more sense.

@Eric Mayer oh I see where you are coming from. No, that is not a concern in this case. The buyer is first time home buyer.

@Eric Mayer can you elaborate on why the vacancy is the deal breaker for the buyer?

@Caleb Heimsoth $1300

@Andrew S. The house is actually very nice. It is 4 bd 2 ba, built in 2013. Everything is new in the house. The tenants love the house but hate the neighborhood. It is kind of going downhill. There is a house down the street operating like a car shop. The PM has notified city multiple times, but no luck. The tenants reported that there are also some sketchy people in the neighborhood, and they were fearful for their kids. So nothing I can do to really help the situation.

@Gary Parilis Your assumptions are right on. I put down 37k and I am going to get about 28k back if I accept the offer. Plus the 2k cash flow I received in those 2 years I owned it, that will make the loss equal to 7k or 8k (without calculating opportunity cost). I plan to add additional 9k from my reserve to buy a more profitable rental that cash flow $300 per month. I don't count on appreciation, so I assume it is equal. With that, about 3 to 4 years, I would be able to recover that 7k.

@Jacob Sampson well said! Thanks a lot for your insight. The numbers look okay if I keep it, need to find a new tenant though. The neighborhood does have a feeling of going downhill. I am wondering how to quantify something like that and bake it into the decision making process. I suspect the appreciation will be flat if not decrease. Could potentially have a hard time to sell it later if market went downhill at the same time.

@Calvin Ozanick To add a twist to the story, the tenant was informed that we were selling the house. They broke the lease and fled to some other place in three days, giving my property manager a very short notice. Now I have a vacant house. If I decide to keep, then I need to find another tenant. Does that change your opinion?

@Ryan Lee yes, she is the listing agent.