No, this video is not clickbait. All great things must come to an end. What's going on team, it's ricky with tackle solutions, and in this video i'm going to be breaking down. Why i'm selling a property that's been so uh, i would say connected kind of, like my youtube overall experience, um the reason i'm actually sharing.

This is one of my first videos i ever uploaded on youtube was actually buying my first property uh at age 20.. This was back in 2015, i was at asu and that's kind of how i started my journey. I just began to kind of document the things that i was doing didn't really expect much out of it now. 1 million subscribers later we're kind of here, so you've kind of seen me from me kind of just starting my college journey to now.

For those that are not aware um, i now have a newborn and um we about four weeks ago, four weeks as of uh tomorrow had a baby rachel and myself and my guest rachel delivered it. I i i took, i don't know, i don't know what to say about that, but um yeah, four weeks ago uh we had our baby girl and it's been the biggest like transition in my life uh, but also, probably, if it is, it is the the best Thing that has ever happened to me. It's absolutely insane. I could have not seen myself a year ago having a baby, and now i can't see myself living without her, so very, very excited and happy to kind of like just share my journey with you.

So, yes, why am i selling my property i'm going to be breaking down everything i'm going to be explaining uh, let's actually just get to it. Why am i not renting out this property so for those that are unfamiliar with what property i'm actually talking about? I've? Actually done like house tour videos with it and stuff like that, you guys can look it up on youtube if you want to um it's this property right, you've seen me with all the different cars that i've owned. I've always posted pictures in front of it. I bought this property back in 2018 september to be exact and i bought it for 827, 500 uh september 5th, 2018., good times good times and uh.

Now this is an exact comp. This was actually sold about uh. Seven months ago i tried to be a little bit more on the conservative side. This was seven months ago.

This is an exact comms. This one sold for 1.4 million dollars right and it's like, oh this one. The thing that i do have to make sure i explain is this one's really really nice very nicely renovated everything looks brand new. My house does not look like that and that's what we're going to be talking about today, so i just wanted to show you a couple different uh of the pictures uh with that being said, um.

Why is it that i am selling it instead of uh, renting it out um with the market being so overpriced? In very simple terms, i don't think that the rental income that i would be receiving from this type of property is bulletproof. What i mean by that and again, this is just maybe the way that i'm wired, but the first property that i ever bought back in uh 2015. That house i bought for 167 thousand dollars, it's 1500 square feet. Someone will always need a place to live.

It's a three bedroom two bath very entry level house. I know that i will always have that property rented out no question about it, a house that is 6 000 square feet, eight rooms, huge property right, and it's like yes right now. I know i could potentially rent it out. I could probably rent it out um.

If i do a cash out, refi uh. My mortgage will probably be about uh 5800 to 6 000 a month. I could probably rent it out for 6 500 um. Seven thousand.

Eight thousand right now i know i could what i like to prepare for, and this is just the way that i am uh worst case scenario. I don't think that if the market were to pull back that, that is a bulletproof property to have as a rental property, i would rather sell that property and buy three smaller properties kind of like my first one right. I'd rather buy three versions of that. Not just because i feel like the rental income would be more sustainable, not just at the peak of the market, but even at the bottom of the market.

With that being said, i don't think that this property can continue to appreciate the way that it has moving forward. There's only so much that i think a property can be worth especially in that neighborhood, especially in that area, where, instead of peaking at 1.5, maybe 1.6 million dollars. I can lock, in my profits, buy more entry-level properties that are more than four five hundred thousand dollar range, and then i see there to be a higher ceiling for appreciation on those properties. I don't know if you guys would agree with me.

That's kind of just the way that i looked at it again. I bought this property back in 2018 for the 8 27. I put 400 000 down. I owe about 400 000 on that property and if i could sell it for 1.4 million, i can walk away with nearly a million dollars cash, so even putting 20 down think about it.

I can i can buy so many of of smaller houses have more of a sustainable rental income and not worry about overall market conditions. That is one of the main reasons that i convinced myself that, yes, i could have either just this one rental or i can lock in my profits, take that capital and allocate it and diversify diversified between three four five different rental properties that i see to be More sustainable when it comes down to rental income and, of course also, i see more potential for appreciation over the years. So let me know what you guys think about that, but we talked about this overall comp. I wanted now you guys, for you guys to understand renovations right.

I break down all of the house flips right now for those that actually are not aware. I have a total of 11 house flips with my business partner, nick palladino, and it has been a busy start to the year, to say the least. So yesterday, uh friday, we actually locked up two new properties, so uh we we've just been killing it and it's actually because of you guys, so a lot of people that follow me on youtube and that follow me on instagram. Just send me someone that's interested in selling their house, that's off market or if it's a really good deal, and i pay them thousands of dollars if i end up actually buying that property.

So again, if you ever know anyone that wants to sell their house in arizona if it's a good deal, if it's an off market, we make cash offers and buy them all the time. So this is my overall renovation, uh kind of breakdown for the house that i plan to sell granite, 13, 000 carpet 5000 floors, a total 15 000. paint, 7000 landscape, 6000 bathroom 12, 000 cabinet 6000 gas tank. That's in the back uh for like the heating pool and all that stuff, we have to relocate that uh, two thousand dollars roof very small uh work, but again just wanted to uh make sure i leave some margin of error.

One thousand dollars baseboards three thousand handyman. One of the big biggest expenses when it comes down to flipping a property. We have to have a handyman there for all the miscellaneous stuff that we are estimating to be about 10. 000.

Staging again, this property doesn't actually you know the owner doesn't actually own. This furniture right, they pay a company to stage the property to make it look furnished right, so people can see themselves living there. That's going to be costing me about eight thousand dollars fixtures, as in like the different cabinet and light fixtures, two thousand dollars tile and carpet removal. This is a steep one.

Seventeen thousand dollars is what we estimate uh trash removal, two thousand dollars, backsplash two thousand dollars cleaners, one thousand dollars altogether is about 111 000 renovation. I know that not every flip or every renovation goes according to plan so again being realistic. I leave a 35 margin for error. That leaves me with a budget of a hundred and fifty thousand dollars again.

We do this all the time right, so i have this property right now in this, in this less than average condition right, that's my property! I want to get it as close to this condition as possible, so i can get as close to, if not more of the 1.46 million right. So with that being said, i'm gon na do my part and making sure that i renovate the property and give myself a budget of 150 000 to get as close to this number as possible condition as possible. So i get as close to this number as possible when it comes down to closing fees i negotiated with nick when it comes down to a specific percentage. One percent for him representing me, as my listing agent, makes also my business partner for all the different households that we do so he also gets one percent on those one percent.

As my listing agent two and a half percent for the buyer's agent, and then we leave about half of a percent when it comes down to uh title fees and closing costs. So with that being said, we leave an estimated about 58 000 in fees at closing. So a total of, if i'm not mistaken, it's a little bit yeah, it's a 169 000 uh. That's the raw number right, but overall that's going to be 208 thousand dollars that i'm gon na expect as an expense for the house uh and then my desired sell price trying to be as realistic as possible.

You guys can. Let me know in the comment section this house sold for seven months ago: it's an exact comp, gilbert market has been appreciating. I think that aiming for the 1.4 uh 5 million is very realistic um, especially in the market that we are at right now. So with that being said, even at just the 1.4 uh - hopefully it sells for more, but even at the 1.4 i paid for 827 500 back in 2018.

My net profits would be 414 500, which is a 50 roi almost on the dot 50, and that's a total of a little bit over three years. It's been a total of 44 months from start to finish of when i would actually expect to be done with the renovations, which means that i would have made an average of 113 000 average a year since i purchased the profit, which is great super. Grateful super thankful, but again it's my two concerns bulletproof rental income and appreciation, and i feel like i can best do that with more entry-level properties, instead of just keeping one rental that i don't see to be very essential or bulletproof in a bad economy. I can at least try to put my future self in a better position.

Sell this property, you know, have cash on hand and then wait for you know decent deals, just like we've been trying to. You know load up on them here in gilbert and then buy three to four different rental properties that are more sustainable and, of course, more uh margin for potential appreciation in the up and coming future. So that's pretty much it so um again. I i just wanted to share with you guys kind of like the whole process of of what i have going uh right now, and i would love to kind of share this journey with you guys.

So i actually have the guys that i have living there they're. My team right uh moving out in the next two weeks and then we start the renovation process. So if you guys don't follow me on instagram, and you want to stay up to date with this overall renovation and the different projects that we have going on, it's going to be the first link down below, and i'm also going to actually link my business partner. Nick paladino, so if you ever, you know, are interested in either buying real estate and or if you have any deals that you want us to buy from you, we literally respond to all of our direct messages.

So i hope that i can encourage you to reach out to us, send us a message and again we bought two properties yesterday and they were both sent to us literally by instagram. It's not that these people had large following these people didn't buy the properties themselves. They either just knew the the number of the seller or the potential seller uh and or connected us with them, and with that we pay them thousands of dollars. So again we love the opportunity to work with you make sure you comment down below.

If you have any specific questions but most importantly, make sure you connect with us link down below for our instagrams and send us a message so we can connect. I hope that i uh earned a thumbs up. Please consider subscribing and like always, let's make sure that we end the year on our green now. Take it easy team.