All Forum Posts by: Brett McCurdy

@Mark Yu 

Welcome to the site!  I am a MD native and investor in Montgomery county.  Feel free to contact me if you are researching this area further.  Tenant laws could be worse (cough..DC) but there is still much merit in investing in an area so reliant on government workers (stability in marketplace).  Good luck to you in 2015!

@Josh Dotzler 

Just came across your post and thought it was really interesting because it many investors don't realize the disconnect between the P.M's and the performance of their investment.  Turnover is a huge expense and when they have no incentive to #1 properly screen tenants and #2 KEEP the tenant there as long as possible then it would make sense to work up a new pricing structure. 

12%...ouch

I like J Scott's idea of a minimum time frame between charging a fee to place a new tenant.  That would be a good start.

@Account Closed

  You know of any meetings closer to Moco. area? 

Great thread!

@Frank Gigliotti "I'm not sure why anyone would think that refi is the answer to capturing gains. Maybe I'm wrong but the way I see it why wouldn't you just sell?
I realize there are cost involved with selling but many of those are controllable to a certain extent (1039 or negotiating a lower commission with the realtor or even selling by owner) fortunately I do have a RE license but any way. Once u refi u are still carting the risk of the losing value even though it's only on paper and there are cost involved as well.

Please am I missing something!"

You are right on!  This thinking is why you are successful.  Sometimes refinancing IS the answer to continue to leverage the property properly or help yield(decrease equity at risk or lower a very high interest rate) but not in most cases that people will tell you to cash-flow it, it would depend solely on your goals and current leverage scenario.  Many cases you are losing your yield numbers by cash-flowing buy and holds (again this could be case-by-case which is why I say "many"). 

(#'s below clearly based on partnership but it's the leverage I am showing so don't worry about exacts)

 scenario #1:  I have $25k invested in a $250k home and see a 10% increase in value.  End of year one I have  a $275000 home.  My $25k made $25k.

 scenario #2:  I put in $150k instead as a down to cash-flow it.  Same home value and increase in value.  My $150k made $25k. 

I like scenario one even if it means smaller or neg. cash flow but HIGHER YIELDS.

Clearly a sold house will no longer cash flow... but these buy and holds are NOT an increasing yield investment as you hold to infinity.  Find your sweet spot to sell when you have maximized yield and then start the process over.  Just like in stock trading, you wouldn't hold on to a declining stock just to avoid selling fees...

Maybe I'm missing something to but I like your thinking.  I'll take my cash flow in dollars saved.

@James Sparks Welcome to BP!  I am located in Montgomery County if you ever find yourself down this way. 

@Justin B.  I would be interested. I'm in kensington. 

@Bill Exeter 

 Ok thanks!  I think you summed it up here "You would of course have to determine whether this strategy would make more sense vs. retaining the current primary residence and making the duplex a complete rental property."  

Factor in the amount of time to complete these additional tasks as well.

Are their any CRM propgrams that cater to ALL of these categories: property management, investment analysis, Lead/sales management, marketing (not required), banking and accounting?   

I know this is a lot but today's CRM's are pretty advanced and I use one that does this for my company in a different industry (not RE related).  

@Bill Exeter 

  Good points, thanks for going into specifics since the first part was a little hazy, it would be somewhat lost if these other actions weren't taken or even known about (or differed in a 1031 case).  you also mentioned the 3 year window which is critical also.

Can you explain the split of the 121 exclusion and 1031 exchange and it would apply to this particular scenario where she would live in the duplex exactly?  Do you know how this would effect the yield #s for the investment by doing it this way instead of lets say staying at her current residence and investing a % in the multi-home instead?  Regarding the % of her cap gains that is deferred (1031), where would these be deferred to in this case and what would be the time frame?  

Arrive with the sheriff at eviction.