Updated over 2 years ago on . Most recent reply
investment advice/ consultant 1031
Does anyone know a professional Real Estate Investment Consultant I could hire to talk this out with?? I have a big decision to make and I really want to get it right.
Been a landlord by default before.
Thinking of a 1031 on a completely paid for recreational land property to purchase 2 to 4 single or small multi family in B or C class for long term rental. The B class I am thinking of is St. Charles County. C class Florissant/Spanish Lake areas. I dont see the B class single family cash flowing or having a good CoC return. Although not a contractor I am comfortable with repairs/construction. My idea was to buy what I could without debt and get stabilized then refinance to expand. Eventually I would like to be able to purchase another piece of recreational ground.
The land I have owned(partnership) for 20 years and I enjoy it and am attached to it because of a lot of fond memories. I use it for hunting and a weekend get away place. The cash rent pays for its expenses but that is about it....it is very low cap rate and return on equity. That said the property is worth 5x what I paid for it 20 years ago. I think that puts appreciation >8% a year. We are at a point where we need to dissolve the partnership. Financially it probably doesn't make sense to double down on the land as I would be incurring more debt on an asset that doesn't provide immediate cash flow. However, I think it is a good investment and very little headache!! On the flip side, the 1st option would increase my monthly income which would be great. Just dont know if I can bring myself to trade the beautiful land/nature for some C class 1000 or so sq. ft houses....lol my fortunate dilema.
If I went with the latter I could still purchase a property to BRRR with a heloc and the farm loan would be a commercial loan product and not on my credit report. A lot to consider on this so that is why I am reaching out. Thanks BP
Most Popular Reply
Hi Travis, I am referring you to @Denver McClure. I can help too at some point but I would start with him. Thanks!