With the long-term objective in mind, consider pricing the property strategically to encourage a timely sale. Although the property has an estimated $80,000 in equity, it would be prudent to plan conservatively and target approximately $50,000 in net proceeds after accounting for closing costs, buyer concessions, negotiation, and other selling expenses. This approach creates realistic expectations while positioning you to redeploy capital into a stronger-performing investment more quickly.
Timeline – 7/1/26-9/1/26
Step 2 & 3
Meet with CPA and Attorney
ILLC & Trust Recommendation recommend consulting Jade Russell to assist with establishing the appropriate LLC and trust structure for your real estate investments. While I am not affiliated with Jade and do not receive any compensation for this recommendation, I have found her to be highly regarded within the real estate community. She is known for providing thoughtful guidance, transparent pricing, and helping investors create structures that align with their long-term goals.
One of the most important components of successfully executing your investment strategy is selecting the financing option that best aligns with your long-term goals. I am here to help you evaluate your options and guide you through the financing process every step of the way. The financing strategy will vary depending on which path you choose:
For Example
Option A – Hold Fern Street By retaining Fern Street as your primary residence, your next investment property would likely be purchased as a non-owner-occupied investment. This strategy may make you eligible for a DSCR (Debt Service Coverage Ratio) loan, which is designed specifically for investment properties. DSCR loans typically require a minimum down payment of approximately 20% and qualify the property primarily based on its rental income rather than your personal income.
Option B – Sell Fern Street If you choose to sell Fern Street and purchase a multifamily property as your new primary residence, you may qualify for owner-occupied financing, such as an FHA or Conventional loan. Provided you occupy one of the units as your primary residence, this strategy could allow for a significantly lower down payment—as little as 3.5% with FHA, depending on your qualifications and the property. Each financing option offers unique advantages. My role is to help you evaluate the available loan programs, compare costs and benefits, and develop a financing strategy that supports your immediate objectives while positioning you for future portfolio growth.
Step 5: Acquire a Higher-Performing Investment Property
The objective is not simply to replace Boulevard Street, but to acquire an asset that performs better financially and strategically. Focus on properties with stronger cash flow, lower operating expenses, newer construction or limited deferred maintenance, and long-term appreciation potential. Whenever possible, prioritize off-market and wholesale opportunities, as they can provide more favorable pricing, built-in equity, and greater flexibility during negotiations.
Timeline: 9/1/2026 – 10/1/2026
Step 6: Execute Your Growth Strategy
Complete the financing process and close on your new investment property. By replacing an underperforming asset with a stronger-performing one, you’ll be positioned to increase cash flow, improve overall portfolio performance, and continue building long-term wealth through strategic real estate investing.
Timeline: 10/1/2026
Notes and More Considerations
Alternative Consideration: While moving back into Boulevard Street is an option, I do not recommend this strategy. Despite the property’s equity, its ongoing maintenance demands and recurring repair costs make it an inefficient long-term asset. I believe your time, capital, and attention would be better invested in acquiring a newer, stronger-performing property that aligns with your long-term investment goals.
