Hey there, folks! So, here’s the deal – I’ve been dabbling in real estate investing in Cleveland as an out-of-state investor for about four years now. When I first started, I jumped in headfirst and bought four properties in my first year without really knowing what the heck I was doing. One was bought with cash, and the other three were financed through debt. But now, I’ve decided it’s time for a change of pace.
I’ve made up my mind to downsize my portfolio to just two properties, and here’s why: I know the standard advice is to leverage debt to expand your investments and all that jazz, but personally, I’m all about that peace of mind. I have a decent full-time job that keeps me afloat, and I’d rather have less debt and fewer headaches to deal with. Plus, I’ve gained some valuable experience in the real estate game, and I’m itching to use that knowledge to invest in better properties moving forward.
So, I just sealed the deal on selling one of my properties today to kickstart this transition. Now, I need to figure out which of my remaining two properties to let go of so I can pay off the other one. Both of them are expected to fetch around $130k each. Let’s break it down:
Property 1 is a duplex that’s been around the block a few times. It’s an older building, but I’ve poured a ton of effort into sprucing it up – new plumbing, full bathroom makeovers, sealed basement, you name it. I can fetch around $1,800 a month from non-Section 8 tenants (which is my preference). Sure, it may still have some maintenance issues typical of older buildings, but overall, it feels pretty stable. The appliances and major systems are in good shape, which is a huge relief.
On the other hand, we have Property 2 – a single-family home measuring a spacious 1,800 square feet. I personally oversaw its construction from the ground up back in 2023, so it’s practically brand spanking new. Here’s the catch though – it’s situated in a not-so-great neighborhood. I took a gamble on this property as my first rehab project and opted for a cheaper property to cut my teeth, hence the down-to-the-studs rebuild. It’s a whopping 1,800 square feet, but I’ll be fully reliant on Section 8 tenants due to