Man, you can’t build up?
95133/132 and 131 are too good and coming up as new Bart is coming. This good to hold for long, get it cash out refinanced. Contact any union bank, they support rental cash out refinance.
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Big mistake to improve your rental for a few extra dollars in rent. How many on this forum are upgrading their rentals…
if you improve, sell… otherwise hold on or 1031
Better to upgrade to multi family… Plenty of books on how improving cap rate grows wealth…
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Rental cash out is limited by your low cash flow…
Even if future prospects of the area suggests major appreciation? Can’t be that clear cut, is it @Elt1?
Yes it is… His IRR value is limited by the rent potential. Therefore the value is mainly as home for a first time buyer… Maybe 5% a year appreciation long term… We have seen huge appreciation. It is leveling off…If he wants a higher IRR will have to 1031… That’s the problem when you have a ton of equity… Your cash is poorly leveraged… Basically rotting in place…
So not even building up if possible???
Too expensive, $500/SF
Never will pencil as a rental
May not even as a flip… what does a 2800 SF house go for in the neighborhood… Subtract $500k in remodeling…
plus lost rent sales cost
Unless there are $1.8 m comps don’t bother…
Sell or be happy with current returns
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it’s already a two story SFH
I def would not sell. Now, market seems to be quite frothy anyway so hold off for now maybe unless you come across a fixer or something you really think is undervalued and then maybe borrow enough to buy it.
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Be happy with your return… Let’s be real you have very little original cash in the deal.
Your IRR on is huge based on invested money.
Biut your cash flow is 2-3 times less than it could be if you sell or trade…
What is your net cash flow after debt expenses and taxes?
Well, one thing @bayarearentalland hasn’t provided is details on how old he is. He may be nearing retirement age and doesn’t really want to cramp his lifestyle. Not everyone wants to buy, buy, buy…
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Even at retirement this is a poor investment… $30k minus mortgage expense of $15k is a 2% return on his $700k equity… Not very useful in retirement
In fact all you investors with low or even negative cash flow need to plan an exit strategy that will increase cash flow.
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Hold on, how is it remotely possible that owning a SFH in soon to be ground central for tech madness is actually a bad investment???
about 600 monthly
age 47
Net $600 monthly is a very little return on $700k
Better return at Barclays Bank
As long as you don’t need the cash let the equity build… But my guess is the big appreciation is behind us
$700k can get you $6k monthly returns…
10x current return
At 47 I would trade up to $2m plus building with a cap of 6 or above… plenty of ways to put that $700k to work