All Forum Posts by: Sameer Kh

If the property is constantly losing money and it's not a one-off sort of problem (i.e. big turnover or roof replacement, etc.) and you can pull out some money selling, I would recommend selling.

Thanks Andrew

0 Votes

Originally posted by @Tyler Jahnke:

Hey @Sameer Kh - spending $6,100 on repairs seems like you'd basically be spending 5 years of cash flow (considering you finally made some money this year in the amount of $1,200).

So, it looks like you're betting on appreciation, which is always risky. I think you need to consider selling / 1031 exchange.

Best of luck Sameer!

-Tyler

Yes. Good point though Houston market is strong but again I don't want just the appreciation I do want the passive.

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Originally posted by @Caleb Heimsoth:

@Sameer Kh did you buy this through a turnkey company? What’s the current rent? What does that 6100 include? How big is the house? 6100 seems very high unless there’s a lot of damage or it’d a large house.

Personally I would say sell and not invest in any of the things you mentioned.

Yes I did buy this from a local turnkey. The rent is 1280 and the property manager charges 10%. 6100 includes lot of paint work, minor ceiling repair, cabinet and minor blind fix. The house is not too big only 1200 sqft. I agree the quote is lot higher. I dont see a lot of damage and all the work is mostly paint and finishing

2 Votes

Originally posted by @Joseph Walsh:

Also, assuming you have income somewhere else like w-2 income, those loses can offset some of that income. So, it might not be a "loss", only on paper. I have a property like that, I am waiting until my long term renter decides to vacate then going to spend the ~2k to get it ready for market and list. Sounds like you just got that window of opportunity. you can sell and no lose too much money, and look for a good investment, since it sounds like you paid too much relative to rental income (mine is the same, but it was not bought as an investment, just my last house in a market that crashed so I couldn't sell without pain)

Due to my income level I cannot offset the loses but I do see your point in taking advantage of the open window

2 Votes

Originally posted by @Soh Tanaka:

I'm not trying to be funny here, but if your goal is "passive income," not "passive expense," then I see no reason to hold on to it. Sometimes we get into this situation where you are not cash flowing AND don't have any equity. Fortunately you have a decent equity, so I would definitely do 1031 exchange. I can't speak for the other options you mentioned (Fundrise or Holdfolio or Cardone Capital) as I never used them.

Best wishes to you.

Soh

I agree I don't want to drag this too much and sell to reinvest where it's actually generating income

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Originally posted by @Sarah Brown:

Can you do a different kind of rental and make more money? Perhaps furnished or short term?

Yes. I do have a short term rentals and that certainly is option.

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Hello BP folks,

I have an interesting situation for one of my rental property which I purchased in Feb 2016 for $109K.

The property has now appraised for $130K and I expect it to appraise at the same rate. I put down $30K on this deal and rest is financed.

I have been losing money on this property since my gain from rental income is too low to offset maintenance/repair/PITI/HOA/property management costs. Last year, was the only year where I made $1200 in profit.

I had a long term renter since I purchased it and apparently they left the property 2 weeks ago due to financial crunch. Their contract technically renews in April.

The property management company did a moveout inspection and found the total cost to get in the market (mostly paint and patch) will be $6100 (I feel this is high).

My question is should I invest $6100 to get another renter in place and wait till I get it appraise upto $200K and sell? If I spread that $6100 I will be making no money atall on this rental for next 3-4 years.

OR should I sell it for $132K and do a 1031 exchange into another deal?

OR should I sell it pay taxes and invest in Fundrise or Holdfolio or Cardone Capital?

My ultimate goal is passive income.

Thanks

Sam

2 Votes

Hello I am looking to purchase a property under probate (owner passed away and two son on the Will. one is key stakeholders and the other is not interested and will easily sign off.) I have couple questions: 1. what do I have to do to help them put property under contract with me? 2. If all party agree how long it takes for the probate closing process. thanks and much appreciated. Sam

0 Votes

I have 2 SFR under contract and would like to partner with Jacksonville local Wholsaler with good buyers list. We can split commissions. PM me if you are interested.

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All Forum Posts by: Sameer Kh

Sameer Kh has started 12 posts and replied 41 times.

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Should I sell my losing SFR rental or continue to hold on

Post: Buying a Probate Property in Texas

Post: Wholesale JV Partner for Jacksonville FL for 2 Deals