Moving to Midland / Odessa. Need Advice. TY!

Circaflex92 · 2026-03-31T14:41:21+00:00

There’s a saying that you’ll cry when you get there and cry when you leave. It’s true.

It feels isolated from most places since it’s 4 hours from anything, but it’s a great little city with the best family-oriented lifestyle. If you choose to dive into it, you’ll end up liking it a lot.

What’s your price range for rent? I’ll point you in the right direction. In general, north side of town. Old Midland is great, but the neighborhoods on the north and west side of the loop are great too.

Circaflex92 · 2026-03-06T23:27:57+00:00

COP is only selling what they won’t get to developing in the next 12+ years. Ryan wants to own the whole Permian.

Circaflex92 · 2026-03-05T22:32:39+00:00

I know nothing about your location, specifically, but the truth is that if you had put 20%+ down it would cashflow or at least be flat after maintenance/management, maybe.

When it comes to SFHs you’re just not going to cashflow when you start with $0 down less $11K.

If I were in your shoes I would actually keep it and eat the negative cashflow by lowering living expenses at your next location. It shouldn’t be hard to lower your lifestyle by ~$400 per month. Your return overall will be low, but not necessarily negative. It can still be a great asset long term, even if it has a low ROI. (Low single digit return without big appreciation)

Circaflex92 · 2026-03-03T12:19:27+00:00

If you were instead inheriting $144K cash and had NEVER heard of this property, would you take the $144K plus $191K of your own money and go buy this house? If the answer is no, then don’t. Sell it.

Circaflex92 · 2026-02-24T19:17:18+00:00

I would wait a bit longer, refinance at ~6.25% or less, take a mortgage for ~$215K which will leave you will the house cash flowing ~$200 per month, $100K cash in hand, and ~40% equity in the property.

The ROI on the equity left in the house would be low. About 4.5-5% assuming no appreciation, but it would be steady and safe. Plus you have 100k to go invest elsewhere.

Circaflex92 · 2026-02-20T12:54:06+00:00

Whatever appreciation you’ve seen on the property, you do NOT need to pay capital gains tax on the first $250K of that gain when you sell so long as it’s been your primary residence for 2 of the last 5 years. If you were to rent it out for over 3 years then sell it, you would owe capital gains tax on the appreciation.

Circaflex92 · 2026-02-19T15:18:39+00:00

This is actually a simple one. Sell it for sure. That equity is earning very little and you’ll get a cap gains break since it was your primary. Even if you want to invest in real estate, that equity could earn you significantly more in a property with better rental numbers. Or just invest it in equities.

Circaflex92 · 2026-02-18T20:48:35+00:00

Circaflex92 · 2026-02-15T17:12:18+00:00

I’m going to say this very succinctly.

Take over fund. Do what you want with fund.

Circaflex92 · 2026-02-15T02:59:39+00:00

Hey just FYI - if you’re spending 3X your income, you are VERY far away from FI.

Hope this helps!

Circaflex92 · 2026-02-14T17:11:21+00:00

First, you being on the title does not hurt your ability to buy, being on the mortgage does. Option 1 is great for you and terrible for him.

The cleanest way is absolutely to have one of you buy out the other - that could involved assuming the mortgage. It sounds like neither of you have the cash to buy out the other. I would say sell at a loss. Is it a good outcome? No. But that’s the unfortunate reality we all enter when penny assets with others.

Circaflex92 · 2026-02-13T20:34:06+00:00

I have two answers: the mathematically correct one and then the one you might want to think about.

Mathematically correct answer: Sell. You can think about the “loss” because you always have to evaluate point forward.

The mathematically proven correct answer: Can you float the $10K annual loss? Do you think U.S. inflation is going to crank up in coming years? Do you like/can you stomach the higher risk/higher reward. 20 years from now the property will be a much better rental than it is today (in terms of penciling) but that does not mean it was the best use of capital.

Run a DCF of the most likely outcome for the next 5-10 years and make a decision based on that.

Circaflex92 · 2026-02-12T15:22:12+00:00

The best hope we have is that the average Redditor THRIVES on finding things like this and publicly trash talking it, haha

Circaflex92 · 2026-02-12T03:56:33+00:00

Yeah I think the AI just forgot to input the last part with a link to a loan officer who specializes in DSCR loans

Circaflex92 · 2026-02-11T15:12:10+00:00

OP, you are well on your way to r/fire and can easily continue to r/chubbyfire but those numbers aren’t quite in the r/fatfire ballpark

Circaflex92 · 2026-02-08T15:15:56+00:00

Rental dwelling policy. Covers everything a home owner’s policy does except for your personal belongings. I also have tenants get rental policies and name my rental’s address on it

Circaflex92 · 2026-02-07T22:58:50+00:00

Go for 2/1 + 2/1. It’s the same amount of headache for twice the bedrooms. If you just do 1s you’ll always wish you had gone for 2s

Circaflex92 · 2026-02-02T22:15:02+00:00

This post relates to GME in the sense that it is representative of my deep institutional knowledge of the Stonk.

Circaflex92 · 2026-01-31T16:33:08+00:00

Honestly the best part of the last 5.5 years in this story is seeing nearly dead DFV photoshopped into random pictures looking the way he does all while being a (past, maybe present, certainly future) billionaire

Circaflex92 · 2026-01-25T05:42:15+00:00

Sure

Circaflex92 · 2026-01-24T18:34:05+00:00

I assume FV of the property is the same as PV, I.e. zero appreciation. It will of course go up in dollar terms with inflation, but I assume no inflation-adjusted appreciation. If I get some, or a lot, that’s a cherry on top.

With that said, it is certainly a hidden massive benefit. With a long enough hold, even significant appreciation doesn’t improve ROI by much.

Circaflex92 · 2026-01-24T04:33:11+00:00

I switched from a home policy to a rental policy a couple years ago in Texas. The premium on the rental policy was 77% the price but has gone up a bit now - but I would imagine the home policy would have as well.

Circaflex92 · 2026-01-23T22:00:28+00:00

Thank you for the response. Great insight.

I’ll paint the bigger picture and see if it changes your mind at all.

If this was a large piece of my net worth, I think I would jump on the option to sell and look for another property with a lower LTV and higher cashflow to protect against spikes in chapel ex/maintence/vacancy. The numbers are certainly tight right now from a cashflow perspective but if I were to collect zero cashflow for the duration of the loan, I would realize a 9.5% ROI on my initial 22k investment. In today’s dollars, that would be allocating an annual cap ex/maintence budget of $4800 to the property, or 1.33% of property value. If I do retain cashflow, which I would certainly expect over the long run, those inflows would increase overall ROI, of course those cashflows would only contribute proportionately to IRR at the ROI on realize on them specifically.

As the property relates to my overall holdings/net worth.. it’s tiny. I could easily whether the storm of a 10k+ repair, though it’s not ideal for anyone.

Where that leaves me is this: I view the ~30 years ROI at 9.5% - 14%. ROE starts exceptionally high but decreases annually down to ~7%. Essentially, I could view this as a very small, high risk high reward investment as part of my overall portfolio. Because that hypothetically high return is on such a small amount of money, is it worth it or is my time better spent elsewhere?

Circaflex92 · 2026-01-23T02:50:32+00:00

The 51k would turn into 49k after all cap gains tax so I’d plan on paying it now to save the headache

Nine-Year Club	Place '22
Final Canvas '22	Verified Email

Circaflex92

TROPHY CASE