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All Forum Posts by: Rodney Sums

Rodney Sums has started 25 posts and replied 557 times.

@Joseph 

@Joseph Hennisundefined: are you planning to sell property 5 before the rate adjusts?  unless you're being nice to your parents, seems a shame to have 100k in equity (before COS)

 plus be in debt 300k  to get 300/month before expenses.  you could be 300k in debt on a multiplex 

Do the numbers reflected in your cash flows reflect property management fees (if applicable) hoa fees (same thing) and all other expenses related to holding properties?

(btw I'm no expert, new to the game and learning like you.  just my thoughts after reading)

@Ryan E. Please share your calculations for why Joseph's properties are not performing well enough for him to hold, it would be a great learning experience.

Did it prove to be a wise investment or what would you have done differently?

Post: An interesting "should I rent it or sell it" question

Rodney SumsPosted
  • Laveen, AZ
  • Posts 582
  • Votes 525

@Stone Jin I agree with you and certainly want to manage my properties in the future to improve cash flow.  I plan to get educated in property management and laws before doing so.  Thank you sir!

@Bob E. I'd like to learn more, I understand there are companies that assist with lease to own right?

@David Faulkner @Thomas S. you bring up valid points, and I hate HOAs too. My next property will not be in a planned community. What has concerned me about smaller size homes not in HOA planned communities is they are often much older in Phoenix metro. local investors reading this, please correct me if I'm wrong or missing something. Everything built now is in planned communities, which is unfortunate. As for appreciation on this home, I bout it for 150k in 2013, it appraised at 188k about two months ago (doesn't mean it will sell above or below that of course). The appreciation is what made me lean more toward keeping it for a while rather than have 40k in equity eaten up by sales transaction fees.

So most of you say sell still?  

p.s. my next goal is to purchase a multiplex, occupy one unit to save on living expenses and facilitate saving for purchasing more properties.  Feedback on that plan and as it relates to selling/renting my current property is also appreciated.

Thank you all for your replies!!!

Post: An interesting "should I rent it or sell it" question

Rodney SumsPosted
  • Laveen, AZ
  • Posts 582
  • Votes 525

Yes that makes sense and I will keep those thoughts in mind going in to the next deal whether I sell this one or not. Have you found it worth it to pay all the PMI fees using FHA loans in an effort to keep more cash?

Post: An interesting "should I rent it or sell it" question

Rodney SumsPosted
  • Laveen, AZ
  • Posts 582
  • Votes 525

I hear you.  In the long run, as the mortgage is paid down and the home appreciates (which it has done well in the past few years) eventually there'd be enough equity to borrow without creating negative cash flow.  Otherwise, currently I've minimized spending increasing savings.  The immediate goal is to create positive cash flow while the tenant pays down the debt and the property increases for a later sale/borrow against equity.  What I'm taking from your recommendation is if the property doesn't rent soon enough, sell?

Post: An interesting "should I rent it or sell it" question

Rodney SumsPosted
  • Laveen, AZ
  • Posts 582
  • Votes 525

Thank you for your reply.

1. I only refinanced the balance plus escrow. Taking cash out would have reduced the potential cash flow. The primary purpose of the refi was to eliminate the PMI of $150/mo

2. I'm using a property manager

3. Yes, I would definitely apply the cash from a would be sale to use toward down payment of a property that is more desirable or toward a multiplex where I can occupy one of the units

4. It's too hot in Phoenix for a tent so I'm staying with friends until a tenant is paying the mortgage haha

Post: An interesting "should I rent it or sell it" question

Rodney SumsPosted
  • Laveen, AZ
  • Posts 582
  • Votes 525

Hello, I'm new to this site and new to investing.

I'm currently attempting to rent my home in an effort to decrease spending significantly, raise capital for more real estate investments, and of course allow the current home I own to serve as an investment.  Here's the facts on the property:

Appraised at 188k (SFH 2000 sq ft 2 level)

I did a refi, refinancing 146k

Mortgage with taxes and insurance about 860/mo not including 65/mo HOA

Spent about 1500 to clean, do carpets, repaint were needed

House is listed for rent at 1250 (dropped from 1275), has been on the market 19 days

paid October mortgage

Using a worksheet from a textbook I read, I'm hovering around %80/mo cash flow after icludng all costs from the mortgage, insurance, tax, property mgt, reserves etc.  but with every passing day that number decreases

There are homes similar to mine now appearing on the market at the same price or lower despite being the same size or even larger.

Should I sell, take the cash and save toward another or continue holding out?  I really want to rent it and even if it stays vacant long enough to just break even, I feel like it'd be worth it long term since I didn't have to fork over a large amount of cash up front being that I occupied this home.  Any input greatly appreciated, thanks!