All Forum Posts by: Aristotle Kumpis

It really depends on what your goals are. Are you looking to flip a property for extra capital? Or are you looking to buy and hold for long term? An FHA loan is financing for your personal home. I guess you could buy a home and rent out a room if you are comfortable. Or purchas a 2-unit and rent out one side. But for a 2-unit, you better have more reserves set aside.

Just remember that when people get desperate to make money, they do desperate things. And they dig an even bigger hole.

Hi Amy. Just curious to know why you picked Mexico over the U.S. The financing is more favorable here and there are great places that do very well for STR.

Hi Anthony. Welcome to BP. I think I might be able to point you in the right direction. I have a partner that has an operation in SW Florida. And they can help you locate the right areas. They are also investor focused so they can also help you there as well. Let's try to connect so I can put you in touch. Thanks.

Hi Jesse. I actually own two rentals in Montgomery AL. And one is a section 8. I have had them for over 10 years. My section 8 property has had 3 tenants in those 10-11 years, so not too bad. There are pros and cons of section 8. The great thing is that the tenants usually stay longer compared to market rate tenants. That keeps your turnover costs low. You do get rent every month, but sometimes not. There have been a handful of times that local housing authority has missed payments. The downside is that it can take up to 60-days to receive your first rent check with a new tenant. I also found out that in Montgomery, if you have to evict a section 8 tenant, they can still get another voucher for a new home. Some counties kick the tenant out of the program. But not there.

When you 1031 exchange, the capital gains that you had from 18 years ago will also be deferred into the new replacement property. At some point when you sell the exchanged property and cash out, then will need to pay those taxes. But the whole point of exchanging is to defer your gains over and over again. California also has a clawback provision, but you don't pay the state taxes unless you sell and cash out and are done exchanging. Not sure if Oregon works the same.

I don't know the Denver market. But from what you are saying, you might as well keep the property for a rental. Even if you are breaking even or making a little cash flow, you will still get depreciation, and other tax benefits. So since you don't need the equity right now anyways, just hire a PM and rent it out.

Depends on what you are trying to do. Are you trying to flip or wholesale?

You got that right! Los Angeles is also terrible, and it's why I see so many landlords exiting out and getting into other states. In high rent control areas, you have to pay tenants to leave if you want them out. And it can cost as much as $30K per tenant! How insane is that?!

You first need to figure out what exactly you want to do. Do you want to flip, buy tax liens, buy and hold rentals, STR, wholesale, etc. Then you can start reading and researching. YouTube has a ton of videos on any topic that you want to get into. I would start there first and see anything catches your eye. Then once you have narrowed it down, you can start researching and studying it like crazy. Nothing is easy, but there is so much information out there that is available.

This is a good question for an attorney. My advice would be to only listen to members here that are attorneys. I have a great referral that specializes in entity protection if you want one.