All Forum Posts by: Porter Rappleye

Calling out to all Buy and Holders.  I need some expert advise as to whether I should sell my property or rent it out.  Let me lay out the scenario... 

I bought a home about a year ago for $140k with every intention to flip it.  I live in the property and have put appx $25k into renovations and also put 20% down on the initial price so I'm into the property appx $58K out of pocket.  I could sell the home for around $220k right now which would leave me with a very decent return but I'd really like to get into the buy and hold business.  I could rent the unit for around $1,300 - $1,400 which I realize doesn't meet the 2% rule but I should still have decent cash flow.  I have enough cash in the bank to basically do the same thing to another property but will be all dried up after that.  I realize I could re-finance and pull out appx 80% of my equity but that would drastically lower my cash flow and I don't think it would be worth it at that point.  

In summary, I would really like to sell the property to pull the cash out so I have more investment capital for my next venture, but I feel like I will just run into this crossroad on the next project as well.  At what point should I put off the short term gain in order to realize the long term benefits of buy and hold?

Your help is appreciated!

-Porter

I appreciate everyone's insight. Chris K, I completely agree with you that if I can't explain it myself I shouldn't be trying to sell someone on the idea. I have a pretty good grasp on REI and can explain the benefits quite well but was just hoping to find a good article or two to help solidify what I've already talked with him about.

Thank you for everyone's insight so far, it is very helpful!

Hello Everyone!

I'm trying to convince my finance/MBA friend why REI is a better business decision than investing in the stock market and I'm not sure he's convinced. What is the best article on BP you've read that compares the two? I'd like to send him one that eloquently describes the concepts of Leverage and Forced Appreciation. He received a 34% return on his stock portfolio last year and I want to show him how he can receive a higher return through these two concepts using Real Estate.

Thanks for your help!

@Holly Baldwin Thank you for your insight. Maybe sticking with another full time job and selling real estate part time to learn the industry is the way to go.

Brandon - I absolutely loved the format you used for this Podcast. I felt like I really learned a lot with your debating back and forth about Waldo. I know Josh kept getting frustrated with Ben going off about Waldo but I kept hoping he would allow him to discuss it because hearing both of your sides was very intriguing. I have enjoyed every pod cast immensely up to this point, but this one was definitely my favorite because it allowed you guys to get deep into very effective content.

Other podcast formats are great for getting the tip of the ice berg on various aspects of REI but never allow you to really delve into specific topics.

Please use this conversational format more often!!

Can't wait to hear what's in store for this week!

Phillip!

Thank you for your insight. The plan is to have a job when I get back but I don't have one lined up yet. That's why I'm debating on whether I should I should consider working as a real estate agent or not.

My goal is to use 100% of the funds made through flipping homes to purchase rental properties. I will need another source of income until I have enough rental units to justify doing this full time.

Thank you for the insight on changing m perspective from the "interviewee" to the "interviewor".

So... I'm looking to make a drastic life change and need some advice from an expert(s). I am from Salt Lake City, Utah area but am currently working in Phoenix, Arizona. I have a great job but have an even greater passion toward real estate investing. Though my REI experience is limited to two flips, one of which I currently occupy but plan to sell within the next 6 months, my passion continues to grow every day with all the studying I do (especially here on bigger pockets). I've pretty much been a bi-stander up to this point, meaning I don't post topics or comment very often but I do religiously read articles and listen to pod casts on a daily basis and have for quite some time now.

My dilemma is this... My family and I want to move back to Utah so a couple months ago I started Utah real estate school online so I can have access to the MLS among the many other advantages of owning a license while investing in real estate for when we get back. I have never wanted to be a "Real Estate Agent" and honestly, the mere thought of it kind of makes me sick to my stomach. I know I probably offended anyone who's reading this post and for that I apologize, but for some reason real estate agents have always had a very negative connotation in my mind. No quite sure why considering I work in sales... but they just do... ok... sorry!

What are the advantages and disadvantages (if any) to working as a real estate agent for investors? Would you suggest I take the leap and try it out, or is there another rout you would encourage? If you do recommend working as an agent, why type of broker should I affiliate myself with? I'm only half way done with Real Estate School so I'm honestly not even quite sure how I would go about finding a broker to work for, but I'm sure there are types that are better geared for investors.

I have been fortunate over the past couple of years to able to save a decent amount of capital to start investing right away but I just want to make sure I don't jump into a new market blindly.

Any help is much appreciated. Thank you in advance for your thoughts!

Everyone,

Thanks for all your insight. The majority of what I am hearing is positive so I think I'm going to continue to look into it. I have a tiny bit of experience with my two little house flips I've done but I'm nowhere even close to where I want to be and I think by associating with experts on a regular basis and studying the fundamentals I'll be much better off.

Again, I appreciate all of your thoughts!

Thanks Evan, I'll email you personally so we can discuss the program further.

Billy, that's kind of what I'm thinking. I feel I can be successful in this industry without a "Masters Degree" however, since investing is 90% about the people you know, the networking associated with the program I feel would be invaluable. I haven't fully decided if I'm going to do it yet so I'm happy to hear the opposing side as well so thank you!

I have a new found interest in real estate by CouponDropDown">investing and would like to do it full time. I currently live in Arizona but am planning to move home to Utah within the next year. I have done two fix and flip deals over that past 6 months (on the side) and am starting to become a full fledged real estate addict. My concern is that I don't have any real estate connection in Utah as both my investments have been here in Arizona. The University of Utah offers a Master in Real Estate Development program which has recently peaked my interest. I not only want to learn everything I can about this industry but I want to network with as many people as I possibly can, which is one of the aspects of this program that is highly encouraged.

Any insight as to whether a Masters is a good idea or not would be greatly appreciated.

Thanks in advance!