My Wealth Journey

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.

Over 18 months ago, I put $1,000 down in deposit to hold my spot in line to purchase a condo in Park City at the Westgate Lodge. I never really intended to buy anything because you would have to come up with over 50% of the purchase price to cashflow. I didn’t want to count on appreciation like I did for a few of my other properties. The sales event came and gone. I don’t recall the exact prices, but I do remember 1 or 2 bedroom condo going for as much as $700,000. I kept on getting flyers, emails, phone calls from the sales agents regarding the condos.

Fast forward 18 months, I get another email with the subject, “Westgate: Studios Unexpectedly Available!” Please! Unexpected? They probably have been available all this time.

I haven’t been following the Park City real estate market, but the point is, don’t buy into any marketing gimmick any real estate agent tries to sell to you no matter how sincere they may seem. They don’t get paid unless you buy.