Should I Sell My 4% Mortgage Rate Rental Property? ($300K Equity)
Published: 2024-12-11
Status:
Analyzed
Published: 2024-12-11
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Rent for Dave's Denver property could increase by $100-$150 per month if the garage space is rented out.
"I think that could raise rents 100 bucks 150 bucks a month"
Pending
Denver's real estate market is not expected to see a significant appreciation boost in the next 1-2 years (from Dec 2024).
"I'm not feeling great that I'm going to get some huge appreciation boost unless not in the next year or two at least"
Pending
Reinvesting $200,000 of equity into four new Midwest rental units is predicted to generate an additional $9,000 per year in cash flow.
"I could probably do that again four more units uh roughly I would basically be repeating two similar deals and at that rate I would be increasing my cash flow on that 200 Grand to let's call it 9,000 a year"
Pending
Refinancing the Denver property and extracting equity would likely cause its cash flow to become negative.
"raising my interest rate would probably and pulling out the equity would probably make my cash flow on this property in Denver go negative"
Pending
Converting Dave's Denver property to a midterm rental could increase its monthly rent from $3,450 to approximately $3,800.
"I do think I could probably get rents from 3450 to let's call it 3,800 cuz it's in a really good location"
Pending
If the Denver property's monthly rent only increases to $3,800 as a midterm rental, the owner might lose money due to higher property management costs and vacancies.
"if you spread out 3,800 over 12 months I might lose money"
Pending
Dave's Denver property is predicted to achieve further appreciation within the next 1-5 years (from Dec 2024).
"hopefully get even more appreciation in the next one to five years"
Pending
Midwest rental properties are predicted to have an appreciation potential equal to the Denver property over the next couple of years (from Dec 2024).
"depending on the deal in the midwest they have an equal opportunity to appreciate in the next in the next couple of years"
Pending
Denver's real estate market is predicted to pick up and grow in the long term, though recovery might take a couple of years (from Dec 2024).
"I still think that it's going to grow in the long term it's very there's a lot of job growth there uh and so I do think it will'll pick back up but it might take a couple years"
Pending
Rent for the Denver property could increase by $100-$150 per month by renting out the garage.
"I think that could raise rents 100 bucks 150 bucks a month"
Pending
Denver property prices and rent growth are predicted to remain flat, with no significant appreciation boost expected in the next 1-2 years due to overdeveloped multifamily housing.
"Denver's pretty flat these days like rent growth is flat housing price is pretty flat multifamily is overdeveloped there and so I'm not feeling great that I'm going to get some huge appreciation boost unless not in the next year or two at least"
Pending
Refinancing the Denver property to access equity is predicted to result in negative cash flow due to a higher interest rate.
"raising my interest rate would probably and pulling out the equity would probably make my cash flow on this property in Denver go negative. Absolutely I yeah I don't see how it wouldn't go negative if you were to refinance"
Pending
Selling the Denver property is predicted to net approximately $700,000 after commissions and cleanup, based on an estimated sale price of $750,000-$760,000.
"I would think you know 750 760 you know commissions spend 15 20 grand cleaning it up I'd say 700"
Pending
Investors conducting 1031 exchanges are predicted to often purchase suboptimal properties due to time pressure, leading to lower cash flow rather than actual financial benefit.
"people are so scared about the tax hit that they're going to take is they go and they buy something that's not necessarily the greatest of numbers because they'd rather avoid paying the capital gains taxes than to wait around and find a deal that financially makes the most sense... you could get end up still paying that money you're just now not paying it in taxes you're just paying it in less cash flow because you bought a deal that doesn't make as much Financial sense"
Pending
Henry's duplex, upon conversion to a midterm rental, is predicted to increase its monthly rent from $1,200 to $3,500-$4,000.
"we're taking that duplex we're going to furnish the units and then we're going to put them up as midterm rentals and take the rent from $1,200 a month up to around 3500 to $4,000 a month"
Pending
Converting the Denver property to a midterm rental might increase monthly rent to $3,800, but could still result in a financial loss over 12 months due to higher operational costs and vacancies.
"I do think I could probably get rents from 3450 to let's call it 3,800 cuz it's in a really good location... if you spread out 3,800 over 12 months I might lose money"
Pending
Using a HELOC to fund new properties is predicted to lead to substantially increased cash flow from the original property after the HELOC is repaid.
"once that line of credit's paid off then your cash flow increases substantially"
Pending
The Denver property is predicted to experience more appreciation in the next 1-5 years, making a HELOC strategy a good option for Dave.
"I feel like you taking a very educated gamble quote air quotes on appreciation while still being able to meet your goals of buying more cash flow seems like a good option for you... hopefully get even more appreciation in the next one to five years"
Pending
Despite current market flatness and oversupply, the Denver real estate market is predicted to pick up and experience long-term growth due to its continued popularity and job growth, though this recovery might take a couple of years.
"I do think Denver is like one of these markets like Austin and Boise where it's like it got overs supplied it got too hot it's still a popular city it's a great place... I still think that it's going to grow in the long term it's very there's a lot of job growth there uh and so I do think it will'll pick back up but it might take a couple years"
Pending