All Forum Posts by: Sharon Supera

Realtor /big pocket questions

Subject: Seeking Guidance on Property Investment Strategy

Dear Bigger Pockets Community

This is a follow up from my previous post.

I am seeking your expert advice on a property investment dilemma I am facing. Here are the details:

Property: Purchased in Windsor Ontario for $350,000 in May 2023.

Investment: Renovations/ repairs and other expenses totalling $60,000 with a down payment of $108,000 (from HELOC) and $5,000 in closing costs.

Current mortgage left is 244k.

Current Issues:

• Foundation issues requiring attention.

• Water seepage due to improper grading of the land.

• Crawl space housing wild animals.

• Electrical panel and roof in need of maintenance.

• Uneven flooring.

Tenant Feedback: Tenant reports minor issues such as pests and a need for washer/dryer replacement, otherwise deeming the property acceptable.

Current Situation: The property was tenanted from September to March, with monthly rent of $2,100/month, and is now vacant. We have received two offers upon listing: one for $330,000 and another for $375,000 with an inspection condition. We accepted the 375k offer but highly doubt this offer would be successful due to the issues as listed above. The potential buyer would likely ask for more discount. In this case, should I just accept further losses or keep the house?

If the sale of the house proceeds, I’m curious about the potential net gain after factoring in the 5% realtor commission, closing costs, and any bank penalties for early mortgage termination. Could you provide a rough estimate of the expected proceeds?

Objective: I am seeking guidance on how to minimize losses and maximize returns on this investment. Should I sell at a potential big loss, continue renting, renovating/spending or explore other strategies such keep renting then rebuilding for future use as a retirement home?

Your expertise and insights would be greatly appreciated in helping me navigate this decision.

Thank you for your assistance.

Hi KC,

Thanks for outlining ideas that could help in decision making. I appreciate your comments.

Hi Logan,

Thanks for sharing your perspective. This helps!!!

Hello BiggerPockets community,

I’m grappling with a significant real estate decision and would appreciate your insights. Here’s the situation:

We own a detached home with 2 units, consisting of a legal 2-bedroom basement and a 4-bedroom, 3-bathroom upper floor. Purchased 14 years ago for $500,000, the property is now valued at $1,500,000. We rented it out 6 months ago due to our need to move to a more accessible condo for a family member with a recent physical disability. The current rental income is $5,300/month, while our mortgage is $1,500/month, property tax is $600/month, property management costs $200/month, and maintenance expenses are currently unknown.

We've utilized a HELOC from this property, amounting to $300,000, for renovating the basement and investing in a preconstruction condo and another property in a different city. Currently, we're renting a condo for $2,600/month, and while we wish we were putting that money towards our own condo, our funds are tied up in the preconstruction condo and the out-of-city rental property. Unfortunately, we can't sell the preconstruction condo as it won't be completed until 2027.

Given our situation, we need the accessibility of a condo for our family’s needs, and the idea of returning to our home is daunting, both for maintenance and our compatibility with living alongside tenants. I don’t have funds for a condo down payment unless we sell the other property to free up cash.

My dilemma is whether to keep the house and wait for the market to reach $2 million, go back and live in it, or explore other options. I would greatly appreciate any suggestions or recommendations you may have.

Thank you for your valuable insights!

Thank you! Super helpful information:-)

I’m seeking your advice on whether I should continue holding or sell a property I purchased last May 2023 in Windsor, Ontario, a city next to Detroit, Michigan. I acquired the house for $350,000 with 3 bedrooms and 1 washroom, investing $30,000 in rehab. The downpayment stands at $108,000, and I have a mortgage at 4.9%, costing $1450/month. Additional expenses include property management at $142/month, property tax at $1700/year, and other costs like insurance and maintenance. Currently, the property is rented at $2100/month.

The house, built in the 1900s, requires significant renovation, and the tenant frequently requests various repairs and maintenance, such as duct cleaning and appliance upgrades. I’ve heard about recent developments in the city, including Stelantes battery establishment, an Amazon warehouse, a new bridge, and the construction of a mega hospital.

Considering the property’s condition, ongoing expenses, and potential development in the area, I’m contemplating whether to sell, especially since the property is not cash flowing and needs substantial renovations. The renovator mentioned the house is in poor condition, requiring a ground-up renovation, which would demand additional funding.

I’d greatly appreciate your insights and advice on this matter. Thank you so much!

Hello everyone,

I’m seeking your advice on whether I should continue holding or sell a property I purchased last May 2023 in Windsor, Ontario, a city next to Detroit, Michigan. I acquired the house for $350,000 with 3 bedrooms and 1 washroom, investing $30,000 in rehab. The downpayment stands at $108,000, and I have a mortgage at 4.9%, costing $1450/month. Additional expenses include property management at $142/month, property tax at $1700/year, and other costs like insurance and maintenance. Currently, the property is rented at $2100/month.

The house, built in the 1900s, requires significant renovation, and the tenant frequently requests various repairs and maintenance, such as duct cleaning and appliance upgrades. I’ve heard about recent developments in the city, including Stelantes battery establishment, an Amazon warehouse, a new bridge, and the construction of a mega hospital.

Considering the property’s condition, ongoing expenses, and potential development in the area, I’m contemplating whether to sell, especially since the property is not cash flowing and needs substantial renovations. The renovator mentioned the house is in poor condition, requiring a ground-up renovation, which would demand additional funding.

I’d greatly appreciate your insights and advice on this matter. Thank you so much!