All Forum Posts by: Eric Black

Hi all. Sorry if this sounds repetitive as I've read a lot of other 1031/HELOC questions but haven't found one that answers my specific question yet.

We know from experience the overall rules of a 1031 exchange but our last one didn't have a HELOC and there are varying opinions on one topic, debt.

Our laat custodian told us that we had to acquire at least as much debt on the new property as we had on the relinquished property at the time of the sale. Some have argued that this is not true but we'd rather not find out the hard way and will listen to our custodian.

So here is our question. We have a rental we are thinking of selling. The mortgage is currently about $87k and we have a HELOC of $75k with currently no balance. The question is, let's say we draw $13k on the HELOC and sell the property. Would we then have to acquire at least $100k in debt on the new property or does the HELOC not count toward that and we would only have to acquire at least $87k?

Hope this makes sense and thanks in advance for responses. 

Eric 

Hi Bryan,

I forgot to include that, but it's 2nd Ave S and it's between 74th and 75th streets. 

I haven't been as I live in California, hence why I'm asking on BP.

Eric 

We are looking at a property in the East Lake are of Birmingham on 2nd Ave and would like to get any feed back from those familiar with the area on. I've read that this is a pretty popular area and has been improving over the past few years but I know opinions differ. It is east of 59 and north of 20. We've used Google Maps to look around but would like feedback from anyone with knowledge of the area.

Cheers!

Eric

Welcome Samuel. Good job getting back on the horse and not letting what happened in the past keep you out of real estate investing forever. I'm in Santa Maria and have investments in California, Texas and the Indianapolis areas. Feel free to contact me if you want to discuss and compare experiences. As for the central coast, I've found it hard to find good deals unless you have a lot of cash to play with. There are much better numbers to be had in the areas you mentioned, as well as others. Not saying it can't be done around here but your options are going to be more limited.

Cheers!

Eric

Thanks all. Already started reading the free book from Mobilehomeuniversity and will be moving on to the others and listening to podcasts as I have time. Thanks again!

 Can do. I would say let's meet for a drink but that's out. Coffee maybe. 

Hi all. I'm looking for recommendations for books or other resources  (besides BP of course!) to learn about investing in mobile home parks. 

Thanks for any recommendations. 

Cheers!

Eric

Welcome Saul from a fellow Santa Marian. You're in the right place. Congratulations on getting started so early, I wish I had! Keep up the learning, reading and listening/reading BP. 

Cheers!

Eric

Hi Ryan and welcome to BP!

How are you looking to acquire your investment properties? Buy turnkey? Wholesale? Rehab and rent?

We live in California but have purchased 3 turnkey properties in the Indianapolis area. Feel free to reach out to me if you'd like to discuss our experience.

Cheers!

Eric

Hi Thomas,

I haven't personally dealt with this situation but have heard of others who have. You must be VERY careful. The main challenge you may run into is, if you buy the property and then tell the tenants you are going to raise the rent, what if they don't want to pay? You have nothing in writing stating that they are the tenants, what they owe in rent, etc. Getting them evicted could become a nightmare, especially if you live in a non-landlord friendly state. 

My advice would be to either require the tenants to move out or have the current owner have them sign a lease at the rent you will be charging prior to closing on the property. If they sign a lease make sure that all terms transfer to the new owner upon sale. 

Cheers!

Eric