Mike K intro SE Michigan

11 Replies

Well...I read Rich Dad Poor Dad a while ago. Since then I have wanted to use Real Estate as a investment/cash flow investment but haven’t approached it as a business. I am ready to make that turn.

I currently have a home in Jacksonville, FL that has been rented for the past 6+ years. It was more out of necessity than preference. I was way underwater.

I recently bought a home in Warren, MI that is up for rent. This is the start of my Real Estate for cash flow endeavor. It was a totally rehab project that should be a BRRR hopefully. I haven't done that yet but that is my plan...

I also own a home in the Rochester, MI area that I am thinking about renting and buying another home in the same area. This would offer me the ability to fully realize my equity that I have build since 2012. Not sure how this would work or the stipulations that a lender would place in me...

My background is homebuilding and building materials but the finance and investing is new to me.

I am looking for a CPA recommendation in Southeast MI before I get to far down this path. I might sell my FL home since there is actually some equity there now, too. A 1031 exchange might be my path.

Well. We shall see go this goes.

Mike

@Mike Kratz welcome! Best of luck on your journey! How are home prices looking in the Rochester area?

Also I’ve posted recently gathering interest for a BP meetup in the suburban Detroit area. Let’s connect to network and see if you are interested.

Promotion
NestEgg
Smarter rental management
Outperform your peers by 71%
NestEgg landlords save $6,960/yr in fees & 20 hrs/mo*. Self-manage for free or go hands-off for $29.
Start now, get $500

@Mike Kratz , with all those puzzle pieces in play you're absolutely right to think about some strategic use of the 1031.  Your accountant will need to help you process through the long term tax planning ramifications of different tactics.  Your QI for the 1031 can help you decide what actions are appropriate using that tool and how best to get where you want to go.  The location of your accountant can have some bearing in that they'll need be be versed in state law for where you reside/pay tax.  From the 1031 perspective location isn't so important.  Any QI with a national footprint can put those 1031s together however you need.

@Mike Kratz

A quick update:

I still own the house in Warren and it has been successfully rented for the past few years.

Purchased a studio condo in Rochester that I am currently updating and it should be listed for rent within 3 weeks.

I bought another complete rehab and it is going through final inspections now. Also, in Warren just a little north. Should rent nicely and is currently listed.

I purchased a commercial property in downtown Romeo through a 1031 exchange from the house in Jacksonville.

I just got another home under contract in St Clair Shores. Another rehab project in my future.

Sold our personal residence and moved not too far to take some of the gains.

So...a couple years and added 5 more doors.

I am looking for easier/less time intensive suggestions and and networking opportunities. Other than BP not many around me are in the RE game.

@Drew Sygit

Touché.

I see the MREI updates and emails but haven’t been able to attend a Thursday meeting. Are they typically well attended?

I meant more in my current social circles.

I currently have a property management company that handles once I rehab. I also have a full time job. Trying to keep it as little of a 2nd job as possible. (I know rehabs take time and effort)

Sounds like you're ready to take the next step and start managing the process of rehabs, instead of doing rehabs. 

Get your builder's license and start acting like a General Contractor.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you