All Forum Posts by: Alpesh Parmar

Thanks @Jason Cory. I own 9 units in Grayson Valley. Looking to acquire some more in Center Point.

I doubt that you are going to be able to find $100K properties that meet 1% rule in West Coast. You should be able to get 1% in Mid-west and Southern states.

I don't think any accountant or attorney would agree with putting rental properties under S-Corp. I also have an S-Corp for my software business and LLCs for my properties located in AL and GA. If you are flipping, you would want to put the properties under a corporation. Have you transferred the deed from personal to business? If not, don't put leases under S-Corp unless S-Corp is being used as property management company. Disclaimer: I am not a CPA or an Attorney so please consult with them.

This may be a blessing in disguise. Now, you can find the tenant on your terms. Use this as your advantage and ask for price reduction. Even if the price reduction is $1K or $2K, it will still cover for some or part of vacancy cost. Good Luck!

If you have enough equity then sell and get cash without paying tax. You can use that to invest in other areas and buy property with 25% down. You may be able to buy more properties when you have cash from the sale. For e.g. You have a $1M house and mortgage is for $500K. You can get HELOC of around $250K or so. Whereas selling that property may net you over $400K after selling costs. Now, compare what is better. You don't have mortgage or HELOC to worry about and no capital gain tax. Don't laugh at this numbers. I am from Nor Cal and the minimum price for an SFR is pretty much $1M. :(

@Ben Visser Are you going to get significantly more rent from year 2? Would you still keep self managing it?

If you answer yes to both these questions, it would work otherwise I would walk away. What would be your COCR after year 2?

What @ finding bird dogs and wholesaler to work with? If you don't have time or don't want to spend energy driving for dollars, it's better to work with wholesalers. Also, attend local REI meetups so you can find partners who may be willing to do the leg work.

Doesn't look like a good deal from cash flow perspective. If you are ready to bite the bullet and speculate appreciation then it may work. I would walk away from this as you will be barely breaking even without paying for PM.

Michael Biggs Vey funny..I think you got the point. :)

Welcome @Rodolfo Marquez. You were a broker and you are practicing Real estate laws so you only know lot more than some of us. I invest OOS because numbers don't work for me in Nor Cal.