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>Discuss your positions in real-estate
>Discuss factors affecting these properties

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>be my dad
>FHA loan on our current house, 600k loan at 6% interest
>have $200k in the bank
>buy another house, for $575k with 20% down, 6% interest as an investment
>mortgage for that house is $3k a month, plus$5k for 6 months prop taxes
>plans to put $15-20k in repairs on it
>rent out for $3500 a month

Is this reckless? My dad now has over 1 mil in debt. This "investment" house will net loss him $300 a month when you include property taxes, and that doesnt even include the improvement costs

To kick this off, I'll just be a straight-forward with my stream of thoughts at the moment. After cashing out of all my crypto holdings and purchasing a 700k brand-new construction house in Seattle proper in Jan 2018, I'm already considering liquidating this asset for about $750k come Feb '19 which is as soon as I can without the tax burden. I still want to maintain a residence here in the city, but I'm questioning two other possible routes to take:

1. Hold onto this property forever, make it a rental due to it's prime location next to future light-rail station which has a history in this market of boosting home value by $50k when station completed. Also it's already 22% paid off on a 7/1 ARM with only a 3.8% interest rate so why not?

2. Wait until 2020 to liquidate, which feels like the next major year for a real-estate slump. How?

All recent major recessions occurred during the final year of a US president's term. I think this is due to the sitting administration always misspending to hit targets over the last 20yrs. Also - corporate and private debt is stupid high this time around. Interest rates are beginning actually climb now.

I just bought my own home for 75k. Single family with a detached garage on a postage stamp lot

Unloaded mine in Toronto last year, went all into crypto, cashed out after a month at ~35% more. Lots of anger about foreign ownership here and thats whats been pushing marginal price + China is slowing down.

Interesting read thats tangentially related:
dw.com/en/number-of-chinese-millionaires-sees-rapid-surge/a-39322859

are you young? keep it forever

>rent out for $3500 a month
Which city/state? This is very important

>spending $20k on repairs
>$5k prop tax
>already negative
If your dad is really spending like this and @ 6% interest I feel bad for him. He is probably very close to retirement age and is trying to get a passive income stream. I still feel like with what you've described it could work - but this is heavily dependent on the city.

Socal, very busy area close to unis schools and colleges

Regarding the interest rate he said he can just refi for a lower rate

Yes a refi would be in his future, however mortgage rates are climbing now and no one is exactly planning on making them artificially low again. Sooner than later would be the time to refi, or who knows, some shit could go down in the next couple years and we'll see 3% interest rates again.

If it's SoCal as in near-coast Santa Barbara, LA, Orange, or San Diego counties -- it's would be a solid investment. Something half an hour inland though in a sleepy college town, not so good.

Cool. I just dont get the point if hes getting a net loss every month