Thursday March 22
Here it is Thursday already! I am plugging along and working my plan. The snow never came and I am so happy about that! I was out super late getting things done instead of sitting home getting things done. My goal if you remember, was to get Burghardt listed by tomorrow. I am on track to make that happen. Pretty much everything is in place. If you’ve been following along, be sure to check out the project gallery for the latest pictures. I am a little disappointed because the appliances were supposed to be delivered and installed today. Unfortunately due to the storm we never got, my delivery was cancelled. I am told that tomorrow is the day. So I will just have to work with that.Now that Burghardt is complete, I really love this property. And I find myself toying with the idea of keeping it. This is my biggest temptation as a real estate investor. Because I love real estate I have a tendency to want to keep everything. Especially when I have spent the time making it so pretty. The truth is, holding real estate for cashflow is the best way to accumulate wealth. But you still need to be smart about what you keep.
Reasons for keeping would be great commuter location, minimal maintenance, would be easy to rent, cost of house to date is super cheap. Reasons for selling would be that it is only a single family, so risk is higher in the event that a tenant doesn’t pay. It is in Worcester and the taxes, water and sewer bills are super high. This will cut into the cash flow. Even if you have no mortgage these expenses will always be there. And of course it is a sellers market and this property will fetch top dollar.
Now I have an idea as to what this house should sell for and if the market data is correct, then there is a really good profit coming out of this house. So as much as I love it, I bring myself back to the cash flow game and think of the lessons it has taught me. It would be much smarter to take the profit from this single family and put the money down onto a multifamily that has even better cash flow. So rather than a $500/month cash flow with infinite ROI, I could work towards a $1200/month cash flow. And in the real estate world it’s all about the cash flow. So I will say goodbye to this nice property and look for the next acquisition.