All Forum Posts by: Account Closed

@James Masotti thank you for your two cents. You are absolutely correct. My grandmother is very conservative so I dought she will use full leverage to her advantage.  She is looking for a pay raise only as she needs about another 600 a month.  

@Dean Weltman Yes I learned my lesson on here and will not be posting these for some time again. Clearly some people do not like Realtors. Luckily I am also a part time Medic so I can introduce myself either way. lol. I just signed up for Pro and was going to post different client scenarios as they came along. I have had some weird transactions in the little 3 years experience I have and thought it would be good learning for myself and others. Good thing I didn't post the last 1031 I did for a client some of these people would have lost a lid on the cash flow and equity gains they got from out of SD,CA

I was simply trying to ask the BP community what they would do with the money. Maybe even get a story about someone who made millions doing this very thing. We all know it is possible to 10 times that cash flow. I gave a underhand pitch to someone with experience to encourage others to take the big leap into that next level.  thank you for the advise to take her time as that is exactly what she will do looking for the perfect property this is a great time for grandma and the 1031 exchange. I would encourage anyone else looking to exchange to get on the train this year. With interest at 4% this is a perfect time to pyramid up.  This is a classic strategy of taking fully depreciated assets from a market near the peak and placing it into another rising market riding a rise with higher cash flow. Almost text book 1031

I knew some people would have different ideas on what to invest in but thought we would get some really strong opinions on the benefits of the 1031 exchange.  Thank you all for your input

@Leslie Pappas thank you. I will tell her about it. Do you have any more information on it? Will it double her cash flow of 1300? will it qualify as real property for the exchange? 

@Ryan Billingsley thank you.  She has done a couple in the past and increased her net worth and asked to be focused on cash flow not appreciation like she did last time. When I ask granny to down size it's almost offensive to her.  Thank you again I will listen to those podcasts.

@Steve Moody  thank you.That is an option to cash out refi at 4.25 today on an investment property. I ran that by her and she is leaning towards the 1031

@Account Closed with the 1031 exchange she will not be able to do owner financing as she will need all of her cash for the future investment

@Jay DeCima thank you. That is very impressive with 250 homes. You must have done some perfect 1031's. I have been managing the properties and she has been managing me but she recently asked me to exchange the property into a more income producing asset with higher end brand new finishes. She says she no longer wants any phone calls about large repairs ( AC went been 98 degrees out) or anything else and only wants checks.  I have shared my very small success with the little money I had with 2 duplexes out of state with her and she got very interested with many questions. She asked me what kind of returns she could get. When I printed for her the pro rental calculators  numbers form the site on some properties for sale in places like memphis,TN and other areas and showed her 20 or so properties in different areas D vs A areas. she's been a  landlord for 33 years and says to me she wants 2015 build or better with B or A area/tenants and prefers to double her cash flow. Her current rental unit has lots of differed maintenance currently needing upgrading in c minus area south san diego. She exchanged her other current rental property out of that area 20 years ago into the nicer La Mesa Property. Her La Mesa property is a better SF she wants to hold onto and possibly move into. I agree with you guys she needs to downsize into one of her smaller rentals and rent her primary. She just doesn't' want to move and keeps going 300.00 or more negative every month. Thats why she wanted to increase her income. Hopefully she sees it makes more sense and less effort if she down sizes

@Account Closed look I will once again agree that I did not post the original question correctly on here and made a mistake, As I stated before I am fairly new and wanted advise from pro's that have been doing it for a long time and have used the 1031 to their advantage on a cash flow opportunity out of state. I figured someone on here has sold there San Diego Property into an apartment complex that cash flows dramatically more.   If it is not possible out of state then yes I agree there is no point in selling the house as the prop 13 would be idiotic to give up.  But for you to say I want to take advantage of my grandmother for my own personal gain is slander and a personal attack against me.  Grandma needs more income monthly to keep up with the economy and rising prices in SD with minimum wage going to 15 dollars prices are rising and she needs a pay increase more than just raising rent. She can downsize her primary also but she doesn't want to move from her 7 bedroom house

@Justin R. @Dave Foster thank you for your input.  @Justin R. yes grandma has asked for higher income with the rising economy. Those numbers are accurate however i factored in 5% for cap X are we going higher because of the older building? or should I increase that number? she has replaced a roof and other major items already.  She also has another rental with 900 cash flow and 250 in equity and her primary residence with 250k in equity. She can raise rents but will need another 6-800 a month for her lifestyle

75% leverage turns 400k into 1.6 million granny is worth. I was asking you why her being worth more and cash flowing twice as much or more is a bad thing and would cost her millions as you stated it would?

@Account Closed either that or you chose to completely ignore the whole thread as it clearly states granny has a free and clear property that would sell for 410k or so and Net her 400k or so she never mortgaged the property and bought it cash in 1972. Your almost insulting and name calling.  I agree you are the master.... ha ha   Is it always like this here?

I apologize for not posting this scenario correctly originally @Account Closed and will correct my posts in the future, but I stated granny will net 400k from her sale of her rental property. I am headed to bed thanks for your help

@Account Closed I was not aware of capital gains? I thought you can defer all capital gains in a 1031? Lost appreciation of 15% in SD ? who can predict that? interest rates at 4% investment loan why the heck not. Her intent was to get more income is why she started calling not for the write off.