All Forum Posts by: David S.

@Mike Dymski

You said, "Just understand that other sites are popping up that cater to commercial investors and they are going elsewhere to network and discuss their investing questions."

Can you share some of these other sites?

@Kai Van Leuven

I do not know anything about SWAP loans but am intrigued at getting 5.75% (fixed?) for a 20 year term. Can you share any other details on how it works? How is the loan structured and what does the bank charge for that? what loan to value are they underwriting on?

@Nicholas Aiola

Thank you for your response. To provide further clarity...You asked, “Was the property in service prior to beginning the retrofit project?” Yes, this retrofit is to the garage of a multi-family residential building that is already in service. (It has been for many years. We are just satisfying new mandatory earthquake retrofitting requirements).

Your high level view suggests that that we can add the fees and permit costs incurred in the first year as an additional item (say phase 1) and depreciate over 27.5 years. Then, when we complete the construction piece the next year, we would add on another item (say phase 2) and start depreciating over 27.5 years. Correct?

@Nicholas Aiola.  Thanks for doing this. This is a tremendous service you are doing for the BP community.

Some construction improvement and tax related questions for you.

We are in the beginning of a seismic retrofit project on our rental building. Last year (2017), we paid for engineering and permit costs but then put the project on hold. We will start the construction/retrofit piece this year.

Is my understanding that these engineering and permit costs are to be capitalized and not to be expensed as professional fees in 2017 correct?

If they are to be capitalized, do we have to wait until the entire retrofit project is completed before increasing the basis of the building and depreciating these costs? Or can we currently increase the basis by the amounts of the professional fees and permits and take some depreciation for the 2017 tax year? If so, how do we go about reporting these? Do we show it as a new depreciable item like if we were to purchase a bunch of appliances?

@Jay Hinrichs.....you said, "I personally think for a 10 year investment Richmond could be one of the best in the area for those that can't pop for a 1 to 2 mil dollar investment."

Can you share further on why you like Richmond, say over Vallejo?....Does that comment apply to multi-res too or just SFR?....Any particular neighborhoods you can suggest researching?

What is the 70% rule?

@Robert Schumacher. I am with you regarding cash flow....Can you share where and what you purchased "out a few hours"?

@Gary F.

@Gary F.I see Bay area real estate continuing to increase over the next year due to continued strong job market and RE supply issues, despite some migration away due to affordability issues...Sometime in 2019-2020, I am speculating a dip due to effects of macro down turn (again a speculation)  but over the long haul, bay area real estate should continue to be a good investment, if you are willing to tolerate lack of cash flow upfront for a period of time.

@Brent Silberbauer. Thanks for your input....I'd be expecting higher than 4.5% if there is no upside in rents. I think 800 new beds could create a lot of uncertainty for existing college stock. What is the non-college multi-res market like?..Is it getting as hot as Sacramento? 

@Dylan Vargas. yes, I have been concerned about supply coming near term too. Can you refer me to any news or articles re current market conditions in Chico. If u can share what you find out from your friend, that would be appreciated. Thanks again!

@Dylan Vargas and other experts in Chico income properties...can anyone advise what they think of this property and the neighborhood it is in?

A six-plex located at 220 W 1st Ave, Chico, CA.

Thank in advance!

@Paige Feddersohn. Can you share when you bought (year/month) and in what neighborhood of Sacramento? Thanks in advance.