All Forum Posts by: David Chwaszczewski

Bill,

Thanks for your post. I had a property looked into the 1031 and that was the information i was given (from an advisor). I will now have to revisit this again and see if it will work. I guess like going to the auto mechanic i should have got a second opinion.

I work a full time job and have successfully rehabbed several homes. I have put in many long nights and weekends to get the project done on time. If you can find a good contractor/project manager you can build your business with then it will get easier over time.

You will not. The rule is you need to own the property for 1 year from day of closing. Also remember that for a 1031 you have 45 days from the sale of the property to list 3 properties you are looking at buying (you cannot alter the 3 or you will not qualify). You then have 180 days to close on the deal or pay the taxes.

Find out if it is a full in-ground basement. I am in the Charlotte NC area and basements in this region are usually day lighted because how bad the soil here is for drainage. From the looks of the middle picture it is not. You will NEVER get rid of the issue unless you put costly drains around the foundation to drain off excess water properly.

I would be concerned that if your current tenants are NOT S8 and you chose to go that way you may loose tenants who do not want to live with S8. Also if you have to have the tenants who are there now apply for S8 it may take a LONG time for them to get on list and get approved. And last you need to know what S8 rents are in your area. You don't want to over improve and find out that you may not be able to get what you were thinking from an S8 qualified tenant.

Good luck and let us know how it goes!

I personally have not done any online auctions, however i remembered hearing about "Phantom Bidding" on this BP podcast:

http://www.biggerpockets.com/renewsblog/2013/10/24/bp-podcast-041-flipping-lease-options-douglas-larson/

I hope this helps!

Welcome! There is no better place to learn then BP!

I usually break it up into thirds. If the contractor (who I know/trust) is getting everything and I am hands off, then I will give them enough money to cover materials. They get the second part after they are done and I inspect the work. I always hold 10% for 30 day after incase there is an issue later or during the inspection something comes up on work they performed they will come back and fix any issues quickly. If I don't know them and using for the first time I try to pay after they finish the job and hold the 10% for 30 days.

Thanks for you replies. Just wondering how I will protect myself if I was sued by a tenant from getting at my personal assets (my house, other business, bank acct etc..)? Will the umbrella policy be enough?

I am picking up my first rental and wondering since the loan I am getting is in my personal name how I can put it into my LLC at closing for personal protection.