All Forum Posts by: Carl S.

Interested in TX properties, [email protected]. Please and thank you

Start advertising the deals on BP & craigslist and as the inquiries come in, add them to your list. Maybe also reach out to some local HML and see if they'd want to put you in touch with some of their clients (best would probably be to have a deal ready, contact the HML and ask them to distribute). Just some thoughts. What types of properties do you look for?

My partner and I are in the exact same boat! Following to hopefully see some positive experiences and suggestions

 Used Truerent of a year. Great free software but does have some issues/bugs. I've been managing 4 units through it but looking to change to something a little more robust as getting closer to 10 units now. 

Hoping to get some direction on this.

We have a 4-plex under contract, which has actually been through a condo conversion meaning each unit has its own account with the appraisal district. I've seen an few articles which say it is possible but nothing comprehensive. I have pulled the appraisal districts survey and the original lot is still clearly marked. According the appraisal district, each unit is listed as a SFR. I am certain that there shouldn't be any zoning restrictions as the street only has MF building (10, 4-plexes, including us) and they are all listed as MF Residences with a single account per building.

Our reasons for wanting to reverse the conversion is,

1 - Tax value, as condos we'd be paying a premium

2 - Insurance

3 - Mortgage (Cash purchase but we will want to cash-out refi) and as condos we would need 4 loans...

If anyone has been through the process before your input would be greatly appreciated.

Thank you

Thanks All for the feedback, most appreciated.

Hi All

My good friend and I are building our REI business (Buy and hold MF, currently in DFW area) and while we feel that we do have a solid plan that will get us to our goal I welcome any suggestions (positive please!) on what other investors would do in our position.

Currently we own 2 duplexes (4 units) which we've owned for just on a year. They are appraised at $300k (total) which have a 65% LTV(appraised) 30year fixed mortgage on.

In the new year, we will have around $300k (cash in hand) to invest and we feel we have 2 choices,

1) continue to buy duplex/4plex cash deals (finding this very slow and possibly more expensive due to more mortgages of lower values)

2) obtain acquisition finance and "swing of the fences" (on our t-ball field) and look at a $500-$1mil price range Multi-fam which meets our parameters.

My wife, who helps us with the property management, has been in MF property management for 15 years with her last property being 910 units and her current property being a 525 unit lease up so in terms of management, we do feel they we had a firm handle (with track record) on the PM. Both my partner and I have built and run/sold our own small businesses so we do have a decent business track record too.

So I guess my questions are,

- Which option would you pursue, option 1 (cash purchases and then refi) or option 2 (obtain acquisition finance)?

- If 2, can anyone share some experiences or how you went about it, from making the offers to what loan programs/structures you used and how did you qualify for the for the loans (would be great if someone has done this using the rent roll from the new property?). Currently, if we chose this option, we would plan on a private money 2-4 year interest only loan and then a refi once we've improved the property and stabilized the occupancy. Any thoughts?

Any and all suggestions are most welcomed. Thank you in advance

@Dave Toelkes and @Joel Owens Thank you very much Gents, helping me out tremendously here

@Bill Gulley Thank you kindly for your input

Hi All

I'm looking for clarity on the tax implications for a seller when owner financing. The seller I am dealing with only has one reservation on carrying a note and that is the tax implication. The details are as follows,

- Owner owns property free and clear (in Texas)

- Owner lives in New Jersey (income tax state)

- Properties are owned in his personal capacity

- Has owned properties for >20 years with depreciation so definitely Capital gains is applicable

- Financing 100% at 0% interest for 20 years (properties are vacant and need serious rehab, I will be investing around 25-35% in rehab's to get properties rented and therefore if I defaulted there would be equity in the properties for him)

What would the tax implications be on the monthly installment? Would he only be liable for the capital gain tax as there is no interest being earned?

Any assistance will be great appreciated

Thank you kindly