All Forum Posts by: Tiffany Palaskas

I'm throwing this out there wildly only because I am hoping to get into an investment this year and I live near Puyallup. How much cash do you need? Would you be open to any type of creative financing on the property?

If we sell, we will have between $150-200k to play with. I don't think my husband would want to do any creative financing. He's ready to list it will a seller as I type this.

0 Votes

Tacoma, Washington

Quote from @Sam Ojo:

Quote from @Tiffany Palaskas:

Hi, I currently own a duplex in Puyallup WA. We recently moved to TN and have both sides rented. We profit about $1200 a month from both units. My question is, is it wise for me to sell it and profit $150-200k after owning it for 4.5 years and invest where I currently live? Or should I keep tenants in units and once they move out turn it into midterm rentals for traveling nurses, etc?

The property is in a great location, close to stores, restaurants, fair grounds, freeway access, and less than a mile from hospital. Each unit is 3bd/1.75ba, single car garage and fully fenced backyard.

Any advice would be helpful. We want to build our portfolio. Just trying to see what is the best option.

Thanks,

Tiffany Palaskas

In my experience, one of my biggest regrets were selling a great cash flowing property in a college community. The profit was around the same but I lost a lot of wealth in that transfer. Not only the cash flow but the long term equity. The property jumped another 100k less than a year after the sell as well as rents went up to support what would have been the new monthly debt if I refinanced and held.

Everything is case by case but from what I've seen you can almost never loose holding long term. In a climate like this with high rates, probably better to use a Heloc so you keep the lower rate of your 1st lien. But a refi is not the worst if rates come down and you use that equity for another asset with a good return.

Yes, that is another thing to think about. We have a great rate there, 2.25% with a mortgage of $3400. We get $4900 right now from both sides. We pay W/S because they are combined.

So it does suck to think about losing such a great rate. But Waa laws are not good for owners. My husband has mixed feelings as to sell or keep. As do I. If the laws were better there, we would definitely keep. So it's a tough situation for us. That's why I'm asking for more opinions from people who have been in the game longer.

1 Vote

Tacoma, Washington

Quote from @Jay Hurst:

Quote from @Tiffany Palaskas:

Quote from @Caleb Brown:

If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange

We do need the cash to buy another property. We don't like the idea of owning in WA anymore. Since the laws are not for the owners and we are no longer there. It seems investing in TN where we are now, and being able to work on the properties ourselves makes more sense.

Then it sounds like you have your mind made up then right? if you have lived in the property for 2 out of the least 5 years you will not pay taxes on the gain, so if you want to sell make sure you do it soon enough to take advantage of that tax advantage.

Yes. After discussing it more last night. We would prefer to reinvest here. We lived in that house for over 3 years so do not have to pay the capital gains.

Houses here that are move in ready range from $200-300k. So I'm thinking, with 20% down, we could get 3 houses.

Question is, is that the smart thing? Buy 3 with 20% down right away? And should we do long term rentals or medium term?

0 Votes

Tacoma, Washington