All Forum Posts by: Jorge P.

@Frank Chin thank you so much for the advise. I really appreciate the insightful market analysis you shared.  Your response makes it the 5th “Sell”.. I’m taking the hint :-)

@Michael Noto thank you for the suggestion Michael. It does Make sense. 

The score:

Sell: 4

Renovate: 0

BRRR it: 0

@Caleb Heimsoth - Im conflicted, thats all. Thank you for you advise , I honestly do appreciate you taking the time to think of it. 

@Ryan Murdock - Thank you. I think I know what I need to do , but thought I gain clarity by asking more experience BP members. thank you again Ryan. Will keep you posted on what happens 

@Alan Fitzpatrick .  Yes, I can pull put out 85%. I have a back who gave me 90% on my last renovation this year. So im not concern about being able to pull out the cash. The NYC market is def a diff type of market, it has its pros & cons, but if you study the market you can def carve yourself a nice piece without doing a ton of volume. It is a VERY expensive market however. Im deff looking into other less expensive markets as we speak. 

@Ryan Murdock - Your def correct.. I am tight on cash... I just feel that Im letting my temporary situation affect my end goal which is accumulate cash flowing properties. I mean theres always another deal to be had right? so maybe the quick pay check is a good idea. Now , if I do take the cash now , ill be hit with short term Capital gains & if I BRRR it I wont. what do you think of that?

@Alan Fitzpatrick Thanks for your advise... so my goal is to accumulate rental properties. I want to increase my passive cashflow. the thought of being able to BRRR it & also receive cashflow was/is very appealing to me. I have done renovations before so im not concern about the renovation stage... I know it would get done.. whats really messing with me is do the ability to add 2 brand new rentals to my portfolio (cap x would be minimal given it will be renovated). thoughts ?

@Ryan Murdock thanks Ryan. 

Even if I can make the same amount in 5 mths and keep the cash flowing property? I’m having a hard time analyzing this.. can you tell me why you would sell?

@Caleb Heimsoth thank you for your response. Man I have to say that I’m seriously considering it! 

But even if I stand to make the same about in 5 months after I refinance it ? .. I’ll have $130k if I refinance it & a cash flowing asset.. but I’ll have to wait 5-6 months... thoughts ?

Hey BP, 

I'm writing because I would really appreciate some advise on a particular situation I currently find myself in.  I'll like to think this is not a unique situation but rather more of a common one investors encounter when buying properties. 

Heres the situation: 

I bought a 2 family home  3 months ago for $200k in NYC. I have the funds to renovate the property but currently waiting for architectural plans to get approved to start work.. My plan is/was to renovate the property for $180k and either:

1.  Sell it for $600k (Make $190k+ after closing cost) & move on to the next. 

2. BRRR it: Take 80-85% of the appraised value & rent it out. The property would cash flow about $1,000.mth net & I would put some

     cash in my pocket from the refi. 

Now the property has been sitting vacant for 3 months as we await for DOB approval & im paying holding cost each month. Today I received an  ALL-CASH offer from another investor for $350k closing next week if I accept. SO.... I can make $130K after closing cost if I accept this offer. $130k in 3 months is nothing to sneeze at, in my opinion, would you agree?

Why am I conflicted? 

  Im a bit tight on cash, because Im stabilizing another property which i finished renovating last month. I have carrying cost for both of these properties and none of them are performing just yet. I have tenants moving into the former mentioned property and I should be cash flowing $3,000/mth once Its rented (should be rented by July 1st). So, I will go from paying 2 mortgages to making money in the next month... However, IN THIS VERY MOMENT , I am  TIGHT ON CASH... and thus the reason why $130k right now sounds enticing! 

Has anyone ever been in this position? if so, what did you do? or what would you suggest is the wisest thing to do? 

Your responses & suggestions are much appreciated. 

Thanks in advance. 

Jorge P. -  "JP"