All Forum Posts by: Ron Angel

@Ryan Sweeney I am also considering Rocket Dollar right now, but for SDIRA, not solo 401(k). I am wondering if you ended up going ahead with them and how the experience has been. 

@Mindy Jensen thanks for that. I will definitely look into the 1031 exchange. 

Joe - point 2 makes complete sense, but points 1 and 3 are going over my head? I feel like there is some REI-fu that I'm missing here and would love to learn about. Can you elaborate on those or link to posts where you've talked about these?

Thanks so much again!

Firstly, thanks so much everyone for your thoughtful answers. I really appreciate it; it feels like like a warm welcome to the community :-)

Seems like the consensus is that I should sell these properties, and a couple of folks are saying to do a bit more analysis, but probably should sell. I think I have my answer. 

For those folks who asked follow-up questions, here are some additional details in case you're still interested:

• - My tenants have been military, mostly enlisted ranks (E4-E5)
• - The houses both rent for ~$1050
• - My turnover is high due to the military tenants it seems like

Finally, I was hoping @Joe Villeneuve you could elaborate on this statement.

"I intentionally turn them over every 5+/- years. If I keep them longer than that, I lose money...and only a small part of that loss comes from rehab, etc..."

By "intentionally turn them over" do you mean sell the properties, or turn over the tenants? And in what sense do you lose money if you don't turn them over?

Thanks again.

Hi Friends!

I am a "relatively new" investor who in a sense is just starting out. I actually have two SFR that I bought over 10 years ago when I was in the military, long before I ever discovered BP and all of the amazing education available through it. Therefore, when I purchased those homes I really had no idea what I was doing and did not even know the concept of "evaluating a deal" existed. Looking back, the investments were pretty terrible by any reasonable standards. Over the course of the past decade I had negative cash flow, but I thought I was alright because I most mostly "breaking even" and building up equity as I went along.

Fast forward to today, I've read several books from the BP bookstore, attended webinars, and read dozens of posts and blog articles. So I find myself faced with a decision about whether to keep holding the two properties or to unload them and take the cash and reinvest. 

To give everyone a picture of the financials, neither of the properties cashflow right now, but if I were to refinance them (without pulling any equity out), they would cashflow a little over $100 each month after all expenses are taken into account. Another plus is that I have an amazing property manager and have had excellent tenants. The properties are near a military base, so I get turnover every couple of years as people come and go, but the vacancy is typically <1 month in between. As for cons, I haven't seen any rent appreciation the entire time I've held these properties, and the property values have fluctuated, but currently they are about what I paid for them. 

So what do I do? Or what are the considerations that I should look at to help me decide?