All Forum Posts by: Anne Pitkin

@Jay Hinrichs

I like this idea! I live in one of her properties now and would love to buy it.  Although I don't want to live in it long-term I could certainly afford double my rent and put that toward a rent-to-buy agreement.  Thanks for the feedback!

@Jonathan R McLaughlin

Thank you for putting so much thought into this response! My thoughts on your corresponding points below: 

1. I am financeable (pre-approved for a loan, although not a $2.5M loan).  I do not have 10% to put down - I might be able to raise it. Or, if I understand correctly, I could put down 10% on the bank-financed part of the loan which would be less than the $2.5M because the seller would finance the remainder. 

3. There's a lot of creative wiggle room here - I could sell 1 or more of the properties strategically based on which property would be impacted the least by capital gains tax.  

5. Good thought - I tried!  Her response was she does not want to sell just one because "managing 5 properties isn't that different from managing 4"

6. Another good thought - I already live in one! That's exactly why I want to buy it.

@Jason Shackleton

I don't think she's interested in the cash now because she has no where to put it, although a 1031 exchange might work if the right property came along.  

Since it is 15 units it is a decent amount of work to manage but not outrageous.  They are all 1920s buildings. 

@Charles Carillo

Are you talking about property tax adjustment or capital gains tax?  Also, for help with underwriting do you recommend a real estate agent or an accountant?

@Dave Foster Agreed, there are a variety of options here. I'm trying to gather information to present the best case for her (and me, if I decide I want 15 units). I will look into both NNN commercial and delaware statutory trust. Thank you for the fantastic ideas.

@Wayne Brooks

Oops - clarification: the purchase price value of $1.3M refers to the price at which my landlord bought the properties.  They are now worth $2.5M.  If she were to sell she would pay capital gains on the $1.2M plus depreciation. 

@Charles Carillo 

This is such a well-structured case - thank you!  You are correct in that the seller does not owe anything on these 5 properties.  Do you think this is a wise-deal for my first investment?

@Jonathan Greene Thanks for the feedback!  I definitely agree the biggest benefit for my landlord is in the capital gains.  It will be tricky to 1031 exchange 5 properties into 1 but I'm researching that as well now.  

@Peter M. You are spot on - I am definitely looking for seller-financing in this deal. I'm trying to build out the case as to why seller-financing is beneficial for my landlord.  Your point about defaulting is helpful and I'll certainly add that to my case.  Thank you! 

@Scott Watson Excited you are in the area! I definitely like the 1031 exchange idea.  I researched it a bit and it looks like all 5 properties could be exchanged for 1.  The difficult part will be finding the 1.  I'm also not sure why she didn't already consider this.  Thanks for the feedback!  Good luck on your multi-family search!

Re: local meet-ups - I recommend the monthly New Haven meet-ups. @Ryan Luby is the fearless leader!  Although maybe it's time we start one in West Hartford :)