All Forum Posts by: Wendell Clark

@Teri S. That helps clarify the situation.  Selling and paying off the second home put the most money in my pocket every month.

Nick,

Thank you for the advice.  If I sold the home, I would pay off another investment home I have.  I have three rental homes, one is paid off, the second I have 50% equity, and the third is the property above.  If I sold the above home, I would use the cash along with the additional cash I have to pay off the second home.  I would have two homes free and clear.  I am trying to analyze this property strategically. 

 I understand there are different real estate investing strategies and I struggle to figure out which one is best for me.

We (wife and I) purchased a home to occupy in 2016 and 2018 I moved. I had no upfront cost to move into a new construction home. In 2018, we moved and started renting out the home. I was cash flow negative (the house was on a 15 year fixed), and I recently refinanced to a thirty year fixed investment loan. It now is $175/month in cash flow. The house has increased over $30K in value, and now I have over $60K in equity. I only had to put down $1000 total ($500 for appraisal and $500 at closing) for the refinance. When I run cap rate ratio the home doesn't seem like a horrible investment. When I run the ROI the home seems like a great investment. Should I continue to rent the home or sell the home when the current renters move out in June? Thank you for your help.

I am looking for a free online Real Estate Course that teaches financing.  Does anyone have any suggestions?  Is there a book that someone would recommend?  I read some of the online discussions about financing, cash flow, and the best way to purchase a property.  It seems to me that there are different views as to which is the best way to go.  I am looking to educate myself, so I can decide the best way to proceed.  Thank you in advance for your recommendations.

Investment Info:

Single-family residence buy & hold investment in Frankfort.

Purchase price: $127,000
Cash invested: $30,000

1st home I purchased before the real estate crash. Two years later, I moved for my job and have been renting ever since. I currently owe less than sixty and will have it paid off by end of summer.

What made you interested in investing in this type of deal?

This home isn't a deal, but I have learned a lot being a landlord for the past eight years.

How did you finance this deal?

30-year traditional fixed rate home

Lessons learned? Challenges?

Should have refinanced it sooner to have more cash flow.