All Forum Posts by: Asa Dewitz

I have a friend that is currently finished with a fixer upper with a partner of his. It’s their first deal together and currently aren’t looking to do another together right away. Both agree that it is best for them to sell and cash in on the profits they will make. My friend is wanting to do his best to avoid taxes with a 1031 if possible. In for 50k (25 each)on the deal looking to sell for around 100k.
Is he allowed to 1031 exchange with his portion of the money that he’s going to receive from the sell of the property? 

He has multiple properties he can buy within the time but he needs to know if 1031 is even an option before they put it on the market. 

TIA

I'm currently looking into doing a house hack. There is a deal around 30 minutes from my current job and my wife's college where she attends graduate school. Quick numbers on it are it's a Duplex that is currently rented at what I believe to bs under market value at 500 and 550 each. 2 bed 1 bath each side. According to agent they have been there 15 years. I believe rents should be no less than 600 with potential to be 750. It is a very small town and I currently have seen no comparable rentals anywhere. It is such a tiny town and this would be my first deal that is one is definitely just for cash flow and the potential for a small amount of appreciation. Have a credit union that will do 10% down 5/1 ARM at 4% then varies based on 10 year Treasury. Rates are high so this is the best option to get lowest payment in today's environment. Asking 128k payments looking to be at full price to 800-840 depending on insurance and HS exemption since it would be my primary residence. Taxes 2300 and estimating insurance to be 1200 a year. Been on the market almost 30 days which leads me to believe there is room for negotiation. Based on the numbers I ran 110k seems to be a fair price where it makes sense for me, obviously lower the better. Condition is roof is okay condition and AC units look OLD for sure but are still working.
Worse case I rent it out for 600 and my payment is 200 a month before utilities. After 2 years let’s say I continue to rent for 600 a side with 800$ payment 

25% for cap x maintenance and vacancy = 300$ plus 800 payment is 1,100$

With 1200 in rent coming in which I believe could be more like 1300-1400. HUD in this area is 502$ a month for 2 bedroom.

A little worried about it because of small town and haven’t found anything to compare it too. Timpson Texas 

Is this deal worth it? 

I’m looking to buy first deal, it is a off market duplex for 55k. The bank I have reached out too, is asking for 25% down because it’s an investment property. He is estimating closing cost of 6,000 that includes survey, appraisal among other things which I thought sounded high. Because me and my partner will be putting 25% down the bank is allowing us to roll 6% if purchase price into the loan so 3,300. This leaves me and my partner to split the other 2700 portion to close. Capital is not an issue but just keeping as much in our pocket is obviously nice. I’m looking for tips and ideas on how to negotiate with seller as well with bank to keep more money in my pocket for security. Haven’t talked with seller about possible owner finance yet but do not believe it will be something they are interested in. If anyone has any tips on what to pitch to bank and especially the seller to keep more money in my pocket. Thank you for any responses. Any questions to help better answer my question please do.