All Forum Posts by: Ashutosh Gupta

We did a major remodelling and addition of a property. we have friends who invested in the venture. The permits and construction took around a year. We are few months out to closing this and will make a good profit for investors. The question is what is the best way to return that money from tax perspective. the way we collected money was by opening a trust.

Looking for some tips from syndication pro's.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $466,000
Cash invested: $100,000
Sale price: $1,280,000

Got rental income as well.
Did a 1031 exchange to use all proceeds to buy another property.

What made you interested in investing in this type of deal?

great location. underpriced market after the 2008 crash

How did you find this deal and how did you negotiate it?

zero'd in on a location and kept an eye on that place. offered and bought this place in a short sale before the open house.

How did you finance this deal?

regular financing

How did you add value to the deal?

added another bedroom/office
other few upgrades

What was the outcome?

sold as owner and to a buyer who also didn't had a real estate agent. saved 5%.
I did stage the home to sell . kept the staging a little longer till the buyer rented the place as well (2 weeks). he got top $ for rental due to a staged home and appliance upgrades done by me (10% more than what I was renting it for).

Lessons learned? Challenges?

you learn less lessons on a successful deal.
1031 was not difficult. You just have to start looking when you start selling

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used my own company (openremodel) for staging

We design ADUs in the sf bay area. Most of the cost and timelines (~4 month end to end to get permits) shared are reasonable. However, $7K for MEP and title 24 is excessive.

To reduce the cost of construction significantly and speed up the process, we also use pre-manufactured units and work with those companies (for getting them to code) and the city to get the permits for the same. It's something that you can suggest your architect too.

Do your cost benefit analysis. The quality of pre-manufactured ADU is not the same. However, it's at a fraction of the regular construction cost.