All Forum Posts by: Reco Ford

Thanks everyone for the awesome input. I have to apologize for bad information. My initial investment was not 100K, it was 3K (the down payment). The value of the property was 100K when I purchased it but is now worth 250K-270K.

I do understand the true cash flow is not $400/mo. I haven't had to deal with repairs other than replacing the air filters, no vacancies issues yet and payed $125 for gutter cleaning after we moved out. I know I'll have to figure out what the projected expenses and vacancies will be to figure out the true cash flow number but rough guess would be about $225-$250/mo. Yes, I'm a rookie but I'm learning from my successes and mistakes. Thanks again.

My initial investment 6 yrs ago was 100K. Yes, $400/mo positive cash flow. I'm not 100% sure what I'll do with the 150K but if I don't sell the house by the end of 2009, I'll pay 15% capital gains tax on it. I may use it to pay on my current primary resident, I owe $190K. At that point I could pay off my residence in about 1-2 years. With no mortgage payment, I could easily save up to pay cash for another piece of property. I just feel like I'd be giving up a good thing by dumping a positive cash flow rental. I know I'm in a great situation either way I go but just would like some perspective and advice.

As far as potential flips, yes I have a piece of dirt I'm trying to flip now potential profit of $10K-$15K. I generally do one of these a year but I'd like to ramp things up a bit. Most of these deals come through a friend but I'd like to learn to fish for myself.

I currently have a rental property with about 150K of equity in it. This was previously my primary residence and has been rented for 1 year. So far the tenants have been paying the rent, sometimes a week late and no major repair issues. With the housing slump, I don't expect significant appreciation or the next 2 to 5 years. So my question is, if you were in the same shoes would you attempt to sell the house at the end of 2008 to avoid paying capital gains tax or would you keep renting. I currently cash flow $400 after mortgage, taxes and insurance. Please state a reason for your decision. Thanks.

I live in the State of Virginia and a friend is about to close on a piece of property in the same state. I would like to purchase 50% interest in the property. We already have a buyer inline for a quick flip. I plan to type up a document with the court house record info and state my purchase of 50% interest in the property and have it notarized. I'd like thoughts on if this would be enough to satisfy the legal requirements to show when it comes tax time?