Author Topic: Continue w/ real estate or other investments?  (Read 1417 times)

storx

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Continue w/ real estate or other investments?
« on: October 04, 2015, 09:44:39 PM »
I am looking for more advice to tailor my investments in the right direction....

I am 30 years old, just graduated from school as an RN and applying for jobs starting this week, i have been kinda limited on my investing since i departed from the military and went on to school to start a career change. I am still unsure on which state i want to stay in as an RN, but im applying all over...

Current situation:
I have about 38k in savings from selling my Corvette, Diesel pickup, and RV after downsizing to reduce my expenses. I only got about 85k from selling all 3 after paying off remaining loans...and been using this to live off of while in school the last 2 years....

I have 2 houses:
1 in NC from when i was stationed there in 2004, its been a negative investment over the years so i signed an agreement to place it up for sale since October 1st the last renters moved out... I bought it in 2004 for 73k when insurance was only about $400/yr, i owe about 49k on it now and its worth 55k according to the real estate agent, ive been renting it for $558 after manager fees, but my out of pocket cost on it is $719 a month due to insurance being so high on the house the last few years mostly

1 in CO from when i was stationed there, its a huge positive cash flow, so i am planning to keep it, i owe 46k on it, but its worth 73k, my mortgage on it is $240 and HOA is $195, i rent it out for $858 after manager fees

My other investment is Lendingclub, ive been using it since 2009 with small investment and its been rock solid ever since i setup the settings to my own custom, so i added more money last year. I currently have 58k invested in it and have never had a negative profit month. I have thought about putting most of the 38k i have in the bank in this account once i get hired...

My questions is this.. which investments do you think i should continue with to increase my future of profits.. should i invest the 38k into another small investment property or toss it into my lendingclub account?

DaveR

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Re: Continue w/ real estate or other investments?
« Reply #1 on: October 04, 2015, 10:42:31 PM »
Diversification is a good idea. Any reason you are limiting your investment options to a rental or lending club?
I would say neither, but should sit on the cash until you get employed, sort out retirement contributions, what state you'll be living in, and taxes.

Ricky

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Re: Continue w/ real estate or other investments?
« Reply #2 on: October 05, 2015, 08:40:53 AM »
I think ditching the NC property is the first obvious move unless you can ditch the manager - though it doesn't look like even that would turn a profit. $719/mo in expenses on a $73k home (not including maintenance?) is flat out insane.

storx

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Re: Continue w/ real estate or other investments?
« Reply #3 on: October 05, 2015, 10:12:42 AM »
I think ditching the NC property is the first obvious move unless you can ditch the manager - though it doesn't look like even that would turn a profit. $719/mo in expenses on a $73k home (not including maintenance?) is flat out insane.

Ya, the property is in great shape, actually in better shape than it was when i bought it with all the upgrades i have done.. but after hurricane floyd hitting the area a few years back, insurance in the area tripled in cost and has steadily raised since.. its been depressing because it made profit for a short period after i moved out before it leaned toward breaking even to now im loosing money.. Ive actually changed managers 3 times over the years thinking it was them.. but none performed better than the next.. So i agreed to sell it for 55k, after the seller fees i should be out of it around 48k... so i plan to pay the difference and be done with it.

I wish i would have invested more into townhouses when i was living in Colorado, seems that everyone i know that owns a rental in the neighborhood mine is in is making good money.. the HOA has only raised about 15 dollars in 3 years, unlike insurance on my house in NC