All Forum Posts by: Todd Keith

Hi BP,

I'm hoping to get some advice from you BP members who are experienced with 1031 Exchanges. 

Background:

I just made an offer on an 80 unit apartment building. I will be assuming the existing mortgage on the property, and plan to pay the current owner $4,000,000, above the assumption, to sell to us. (The assumable mortgage is held by different investor than the seller)

I will pay the seller $2,000 payments each month over a 2 year period with a balloon payment at the end of that term. The idea is that this will allow me to stabilize the property in year 1 without draining all monthly cash flow.

Complication:

The owner is interested in doing this, but there is a hitch. He would like to take the $400,000 and use it in a 1031 to purchase a larger property. He's okay with waiting until the end of the two-year term to receive the balloon, but not sure how that will affect his ability to use a 1031 Exchange.

Questions:

1. If he accepts the monthly payments, will the 1031 clock begin at closing?
2. If so, is there any way for us to take title/ownership and still allow the seller to defer the 1031 clock until the balloon payment is received?
3. If not, what other options would you suggest?

Thanks, in advance, for your help.

Todd

8 Unit Income Producing Multifamily Property

Grossly mismanaged property means value add opportunity for YOU.

Due to poor management, 3 vacancies, unutilized assets, and under-market rents, the current NOI is: $4,560.

With a few value add modifications (Not major repairs) a new owner could bring the NOI on this multifamily property up to $34,260

Don't let this opportunity pass you by. 

Link to Property Photos

Cash Buyers Needed - Owner Financing Not Available

To receive the Executive Summary, please email me at [email protected] or give me a call at 214.272.2348. 

This one won't last long!

Another vote for Estoppel Certificates. We usually have the buyer fill out one for each tenant as well, but that might not be feasible in your case. 

Hi BP, 

We just sent over an LOI on a 27 residential package deal in Ohio. All houses are located in the same neighborhood, all leased, and cash-flowing at $21k a month. We have a property management company ready to start managing them as soon as we close. 

The only question mark in this deal is the funding. 

This is my first time to purchase something this large and I'm hoping to draw on the collective genius of BP. 

What is the best way to fund this deal? 

Thanks for your help

Todd

Property Address:

933 Lister Drive, Garland, Texas 75040 (Link to Map)

B/B/G:

2/1/Carport. Was originally a 3 bedroom, but previous owners removed a wall to make the master bedroom larger.

Construction:
Frame

Exterior Wall: 

Brick Veneer

HVAC: 

Central Full

Roof:
Composition Shingle

Foundation:
Slab

Year Built:
1963

Repairs:

If you plan to rent it out, very little required, (<$1K) but don't take my word for it. As always, we recommend that buyers do their own due diligence when it comes to repair estimates. We all know these can vary greatly depending on who you talk to.

Was originally a 3/1, but owners removed wall between master and bedroom #2 to make the master bedroom larger. Can be converted back to a 3/1 by adding a wall. This is why our repair numbers are admittedly vague. Repair costs really depend on what you want to do with this one. 

Sales Comps:
Market comps show similar properties in the area selling for $124K. (CMA Attached)

Rental Comps:

Rents range from 1174 (2 Bedroom) to 1310 (3 Bedroom) in this neighborhood. 

2/1 Rents

3/1 Rents

Deal
105K. Property can only be purchased with Cash or Hard Money.

Please let me know if you have any questions.

Hi @Dan Voykin. Thanks for contacting me. I just sent over those pics you requested. I'm also getting those lease existing lease details. Will send over that info as soon as I have it. Thanks!

Off Market 8 Unit Apartment Buildings (3 Buildings)

Plenty of Value Add Opportunities for the right investor.

627 Koerber AvenueAkron, OH 44314

If it were me, I would take the $100,000 and use portions of it as down payments on multi family property in a more affordable market. There are definitely places in America much more economical than the California market, where you can find cash flowing multi family property. I am actively hunting for, and finding, excellent MF deals in a more affordable market than where I live. I also wouldn’t be afraid of out-of-state investing. If you have questions about this, BiggerPockets just released a new book on long distance investing. There’s also a podcast where Josh and Brandon interview the author, if you would prefer to listen to his thoughts. Excellent tips in that podcast. Best of luck.

Welcome @Thomas McFarland! Multifamily properties are the way to go. 

Todd

Welcome, @James Galla! @Veni F. had some great tips in their post.