All Forum Posts by: Jennifer Lee

love it ;)

same story for me only it took 2 yrs bc I have mixed used space. 2 commercial tenants ;)

I love value add properties. they take a while to find. but when we find them it's worth the wait

i think it's a good idea just to drive for dollar. and go through the motion. with or without a mentor. find a good settlement company to be on your team if u find a good deal. use this time to setup up your network ;)

use this time to learn how to do due diligence ;) we all learn by doing.

wow! finally 100% occupancy

little things in life!

little triumphs

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it took 2 yrs, but all planned. commercial and residential. 

residential avg days on market is days.

it's the commercial that takes a while. and renovations ;)

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this is a temporary status we are acquiring another 50% vacancy multi! love the challenge!

our results

single commercial unit 7% cap

5 unit mix used 15% cap

duplex 12% cap

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you are just like me!!!

cash is king!

its hard but buy what u want, and buy right.

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if u really want to flip then hold out for a good deal. back paddling is not fun with real estate.

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for me my philosophy is. buy hold and flip to financing more buy hold.

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if u pay cash and u can cash flow 1200/mo, you aren't really stuck. you can cash out financing, or get a home line of credit on your primary home. 

that's how we paid for 6 homes.

with savings and rent we pay down the HELOC. and when we see a deal, we pay cash from heloc and cash on hand.

Hi Terry

Without numbers, it's hard to advise.

Also what is your objective, saying your don't want to be a landlord... are you thinking of flipping it?

You could hire a property manager if it makes sense to your bottom line.

Hi Micheal

I am currently doing a 1031, so I am not an expert.  @Bill Exeter is probably the person to contact on here.

I have similar concerns as @Jason Mak. I think you need to hold the property for at least 1-2 yrs. I think you need to show intend to HOLD the property. Proof that you intended to BUY HOLD, not FLIP.

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We just sold our long-term buy hold out of state unit last wk, now we are looking for replacement.

The amount of DEBT we need to incur is our handicap. we made almost 100% appreciation and the market in my area is "cheaper".  I am having a hard time finding something that can service that new debt.

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to explain numbers work for me, I won't put our exact #:

We bought our unit for  $450K (2001) and sold it for $850K (2015)

It had a HELOC (home equity line of credit) which helped me buy 6 other units in its 14 yrs of ownership of $300K.

Making our Proceed about 550K (You have to take into account all the closing cost, I m just using simple math)

Originally I thought that only need to find something in the 550K, which was easy here and incur no debt.... BUT BP corrected me, if I did that I have to pay capital gain on the $300K. It's Called a BOOT.

So, we have to buy something in the 850K range, if we want to defer all the tax.

And the only thing that can service that kind of debt here is a $1M property... LOL I have to take on $500K debt......

To be continued...LOL 

Fingers crossed:

it's either buy  one $1M commercial bldg, (Cash flow, but incur a lot more debt)

buy multiple multi units, and end up with 20+ doors in a short period of  time barely cash flowing, with $300K mtg to service

buy multiple single family, and end up with a handful of property and barely cash flow with $300K debt

It's a good problem to have, but still a problem hahahaha

short answer is : ME

I'm risk averse, low low risk taker! so pulling trigger 

but my partner/hubby is of the opposite spectrum (speculative) so between the 2 of us, we strike the RIGHT BALANCE.

but its a constant battle. my objections and his eagerness. 

Depends on your market, depends on the set up of the building.

Depends on your renter, are they single or family? or Roommates

Are they working professionals? 

The single and working are usually looking at 2 beds.

The older are looking for 1 bed

Family with kids want 3 plus a yard

The Roof would by my main concern. Are you saying the WHOLE roof needs replacing.

Get a bid and renegotiate

@Kevin Fitterer  WOW that's some level of trust

@Gilbert Dominguez OMG, wow that's crazy, maybe you should find out, maybe you have 100% appreciation somewhere, a goldmine you don't even know about HA!

@James H.  In your sense, I guess I am hands off too. but you are right, I had trusted ppl on the ground, and/or have the infrastructure to keep them long distance. and when that infrastructure deteriorates, I sell asap!

@Al Wilson I don't know what a "good property manager" is, I am my own PM. lol