I invested in a few single family properties in the state of Texas and Utah in 2006. When I got into the properties, I was not one of those investors expecting to make a 50% gain on my properties in less than a year. With my Texas properties, I was hoping for a steady 3-5% gain with either cashflow positive or close to cashflow positive on the properties factoring in depreciation tax savings. So far, they have performed just as expected. I had one home that was vacant for a few months which no landlord enjoys but it’s part of owning rental properties.

My Utah properties are a bit more negative monthly but the amount is not something I can’t live with. I originally had hope to hold on to the properties for about 2-3 years and then sell them. However, with the current state of the housing market nationwide, this is looking more and more unlikely if I’m looking to make anything. I may be able to break even and that’s it if I sell the home in a year. The market in Utah hasn’t gone bust yet like in Las Vegas or in Phoenix but has slowed down quite a bit. Most of Texas is still relatively flat in gains, although central Austin, closest to downtown is still experiencing low DOM stats.

Looking back, would I do the same? I would still have invested in the Texas properties (Austin and Fort Worth) since the numbers worked out, but would have passed on the Utah properties. I was about a year too late with Utah.

The problem now, is I’m looking to buy a home for my own personal residence within a year or two and realize it won’t be too easy to unload a home to free up some cash as it would be if I had simply invested in a CD or in the stock market.

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