All Forum Posts by: Shaun Morgan

 Thanks, I had thought about trying to go that route. I'll definitely consider it!

 If I only sell #3 and then sell 4 and 5 I will basically break even and have no money left over for a downpayment. I could rent when I move, but without selling the others I wouldn't have a downpayment, even at 5%, to buy another property. I definitely want to keep them. I have a 2.65% on property 1 and 4.65% on property 2, but all my networth is tied up in those.

Hi everyone,

     I've got a situation I'm trying to figure out. I have 5 properties in the city I live in, but I'm about to move so I need to decide do I keep them and go long distance or sell them and redeploy the capital. I'm also dealing with some financial stress due to poor investing decisions based on faulty information. Here are the details.

Property 1: mortgage $700, I pay utilities $350, and income is $2300. It is worth $230,000 and I owe $101,000. I estimate I'll keep $106,000 if I sell (also I've lived in this property 2 of the past 5 years so no taxes)

Property 2: mortgage $950, income is $1345. It is worth $180,000 and I owe $104,000. I estimate I'll walk away with $58,000 if I sell.

Property 3: is my current primary, but I have only lived here about a year. It is worth $180,000, I owe $142,000. I estimate I'll walk away with $20,000 if I sell. the numbers don't work for a long term hold right now because of my interest rate. It MIGHT work short term, but it would be close and I would have to pay to furnish it.

Property 4: Mortgage is 1217, it CAN bring in $1900, but I'm only bringing in $600 because of vacancy and repairs needed. One unit is about to be done. It is worth $142,000 as is and I owe that much, so I'd need to bring about $13,000 to the table to sell. I'm trying to do subject to, but it hasn't worked. This is my first mistake headache property so I really don't want to keep this one. If I fix it up and raise the rents it might sell for more, but I don't have the capital for that due to property 5.

Property 5: This is my second mistake property. I have a flip I'm working on that went south really fast for many reasons I won't detail here, but I'm hoping to break even on that when I sell in a couple months, but I might lose money. Most of my emergency money is now tied up in this flip.

I'm considering selling everything to shore up my financials since I have two properties that are bleeding me right now (I acknowledge fully that I made mistakes buying these properties, it has been an expensive learning experience) and to then move that capital with me when I move. I'll owe taxes on $65,000 of 171,000 I bring in selling everything, so to be safe let's say I only keep $42,000 of that. I'd have $$148,000 to work with.

I'm considering buying a duplex or quad when I move to house hack. Duplexes are around $300,000 with $1,500 ish in rent per side, and quads are in the $650,000 range with the same rents where I'm moving.

Do you think selling and buying a duplex or a quad is a good move? Would you sell to shore up previous bad financial moves? What would you do with $150,000 of liquid cash? I'm just looking for opinions to see where my blind spots are.

So I bought a house to fix up with a rehab loan, but I didn't realize it was a strictly Buy to Lease loan. My plan was to move into it during the rehab process since I have a tenant moving into my current home. I found out that I'm not supposed to move in while I have this loan on the property so I started the refinance process, but it won't be done in time. The timing is this. Rehab will be done on March 2, I have to move out of my house by March 1, and the appraisal to refinance won't be done until March 3, so I have about a week where I don't think I'm able to live anywhere. Are there any creative solutions or legal ways I can move into the property before the refinance happens so I don't have to stick my family in a hotel for a week?

My go to guy to learn anything about Lubbock real estate is @Matt Moreland . Start There! He is amazing.

if you want to invest out of state passively I would could consider trying to connect with local investors to create a partnership instead of going turnkey. That is another option which could potentially get you better returns. Just another research opportunity for getting started.

Personally I’ve never heard anything good about Morris Investments. I would do more due diligence on that company before trusting them.

Just to add to what everyone else is saying, my insurance is higher than that and my house is much less expensive. Insurance costs are really high in Lubbock and surrounding area due to hail damage and the possibility of wind damage. I'm not sure where you got your numbers from, but those all seem way too low on expenses.