All Forum Posts by: Chris Hill

@Bill B.  I am in Utah, sorry I didnt include that.  Our market is super high, but I dont think it will tank anytime soon, probably just level off or small decrease.  Yes if i look at return on equity, it is pretty poor.  Any other suggestions if you were in my shoes?

I should clarify my "goal" of 30k a month is lofty, way more than I would every need.  My goal would be to have that within 10 years.   So I'm not sure which method would help me achieve that in next 10 years. 

Capital gains appears to be a killer. I dont think i want to go the TIC route/1031, only because I dont understand all of that.

3 of 14 are paid off, so I could potentially cash out refi those for lets say 750k, put that into 2-4 syndications, and that would increase cash flow by $2500 today.  Is worth taking on 750k more debt for 2500 a month?

Bottom line, what advice would you give me if you are in my shoes?  Its a lot of equity, but I dont know what the right move is.  I know how to save up/buy more townhomes, increase cash flow.  I have that process down.  Some days I wake up and think sell the 14, buy 100 homes in the southeast with a PM and go that route.  But I like the idea of 5-10 syndications, and I am willing to put in some work, lets call it 50% active.  My full time job pays fine.  

Thanks for your comments!

@Colton Hahn Thanks Colton.  can you explain more on how to going into the syndication can be similar to a 1031?  I'm new to all that tax side.  If I were to sell 6, I understand I would have to pay the capital gains if I dont have a like-property.  I certainly dont want to throw $400k away in taxes.  Can I somehow sell and 1031 into a syndication?

Side note, BAM does syndications correct?  Can you send me info on that?

I'd love some advice.  I purchased 14 townhomes eight years ago for $120K each, and they are now all worth $350K.   Total value is $4.9M, and I owe $1.6M.   My goal is monthly cash flow.  I'm about roughly $11k right now, but my goal is 30K.  Here are a few thoughts I've considered, but I am sure someone with more experience might have better suggestions.  

1.  Sell 6 of them - Ideally I want to hang onto the 8 newest ones, so I'm considering selling 6.   Rough numbers, I could sell for $2M, and I owe 400k on those six, so I would net 1.6 (I know I'm excluding some costs).  I've invested in Ashcroft syndications and I like that a lot.  The cash flow of those 6 today is about 6k.  If I were to put 1.6 into ashcroft at 9%, its $12K a month, double.  That diversifies me a bit more, local rentals, syndications.  I'd probably split the syndications amongst a few operators.  (Suggestions?)  I cant 1031 into ashcroft so would it be worth it to eat the capital gains?

2.  Cash out refi - I looked at these numbers if I did refi on all 14.  I could get 1.9 in cash, but the payment on the current loan plus the cash is $18K so not ideal.

I manage the 14 properties, which is easy as they are newer, but eventually I want to be more passive. 

In summary, my main question is what would you do with the equity?  My market could drop and I would miss out on those gains.  All you experienced folks, what would you do in this situation?  Happy to provide any details i missed.  

thanks for the replies.  None of the banks understand the term portfolio loan, is that simply another way of saying a business commercial loan?

Thanks for the answers.  I'm just so used to the traditional loan, but it sounds like to really grow, you have to go commercial loans correct?

I have 10 financed properties. What is the best way to buy more properties with loans? If i do commercial loan with an ARM, what do most investors do when the rate goes up at 5 or 7 years? In my case, i would be buying two new four plexs and i wouldnt want to sell them. My goal is to hang on to them for a long time. My main goal is monthly cash flow.

So what is the best thing to do once you are at 10?  Refinance the commercial when it goes up?  clearly people buy way more than 10 properties so what is the best way of financing them after 10?  can you give me some best practice examples of what you have done after 10?  I would buy 30 more properties if i know the path forward.  

Is that standard practice to request non-refundable, and not use an escrow with wholesalers?

That’s my thought as well

If buying as is, probably needs to be a 30%+ discount 

Possibly buying a four plex through a wholesaler in UT.  I’ve never purchased that way before.  The price is only about a 7% discount.  They want a $5k non-refundable.  How do I protect myself if I can’t do a inspection before giving the 5k?  Do I just make them wait until I can do my inspection? It’s being remediate for meth which will take a few weeks.  It’s from the 70s

I would love to continue in Utah.  I have self managed for 7 years (I have 10 units) so I am very comfortable and prefer that route.  Prices have just increased so much here that I cant find anything that makes more than $150-200 a door, and those are d properties and areas. I’m seeing lots of local guys just breaking even on purchases.  Stuff is selling, but not cash flowing properties.  

That’s why I’d like to try out of state in the Midwest or somewhere more cash friendly. But where???????

Maybe an easier question that has been asked s million times before, what are the best cash flowing cities currently in 2020?