All Forum Posts by: Caleb Rowe

Quote from @Evan Polaski:

@Caleb Rowe, as you likely know, the biggest risk with a 1031 is the reinvestment risk.  You have to feel very confident in your pipeline to have viable assets named within the 45 day and closed within the 180 day windows.  And, if your seller catches wind that you are 1031 buyer, there is always the opportunity that they can leverage that in any negotiations, since you are racing the clock.

Overall, it is a very powerful tool, but not without risk, particularly in this heated market where deals are already very pricey.

That's a really good perspective I hadn't really considered. Thank you for the insight!

Quote from @Timothy Borg:

I am in the same boat.  I have a ton of equity and I have been thinking of selling one and buying something bigger out of state.  For me, it is super hard to pull that trigger.

Yeah, it's really hard to pull the trigger on a unit that has appreciated as quickly as the Phoenix market has over the past two years! 

Trying to do the hypothetical math on my cashflow vs appreciation. Tricky math in the best of times

Hey everyone,

I own a couple of properties in the Phoenix, AZ area and I am thinking about selling one of them and using a 1031 to get into some mid-large multifamily in Western NY where I own a couple of properties as well. My ROI is pretty good on the unit but since the value has skyrocketed in the past 2 years my ROE is looking pretty rough. Property is cash flowing nicely and I have good tenants in place but with my equity in the house I could be buying some 8+ unit MF.

Thoughts?

Quote from @Dale K Poyser:

@Nathan Gesner @Caleb Rowe  what about the possibility of prices hitting a peak and declining from these levels? Any thoughts on that possibility?

That is always a possibility but even if they decline from where they are right this moment, you are already cash flowing. In time, the prices will most likely increase past where they are today. REI is a long term game.

Big advocate of holding, at least in the short term. If value has increased that much already, then it should be much higher in 5-10 years. 

If you are cash flowing from day one, then it is already a win. Plus you have gotten into rentals immediately vs "someday". You will have the tax benefits and depreciation to help offset you newfound income as well.

I agree with @Nathan Gesner Seems like an obvious choice to me

@Jason L Shinn I really like the idea of Short Term Rentals. I am in the West Valley and there are not a whole lot of STR available out here. I really just have no idea how to look at numbers when it comes to that type of investment. My current property manager doesn't do them and I don't know any realtors who really are in it either. I would be happy to connect and hear what your experience is with them.

Hey everyone,

I live in Phoenix, AZ and have 2 properties there that are appreciating like crazy!! I want to get into multi family but that is difficult in the Phoenix Metro area due to the ballooning prices. My question is this:

Should I invest out of state in multi family to gain cash flow, or should I invest in SFR in Phoenix "knowing" that it will appreciate??

I want the cash flow because I want to be FI, but I also feel that in 5-10 years it will be even more difficult to get into any type of property in the Phoenix area. 

Any advice is appreciated.

Thanks, I have been part of the facebook group and now I am looking to join some in person events. I hope to meet some of you soon!

Will this event be hosted online as well? I'd like to attend and understand more about the Tucson market

looking forward to attending virtually!