All Forum Posts by: Buddy Holmes

It is hard to image the concept in California. I have a SFR in Orange County. I bought fo rthe wrong reason: i.e. Appreciation. That was before the bust. I still have it and it has about recovered and the tenant has paid down the mortgage a bit so i can live with it. However CoC or Return on Investment, Cap rate, what ever you call the monthly return is not there.

I recently sold another Orange County rental and moved the money to Charleston, SC in a 1031 exchange. It took 3 SFR to make the exchange. My Orange Co rental rented for $2750/mo.

The three Charleston SFR's total $4900 /mo.

The last purchase was for an 1800 SF end unit town home for $135k and rent of $1450/mo & No HOA.

This gives you an 12% CoC with after a 20% down mortgage.

The OC unit was a 1500SF end unit condo with HOA of $275/mo and a community Assoc of $35/mo

All that said...

I think what you missing is that is you were to get a 20% down mortgage on your property,

Your investment drops to 125k +say 10k closing = 135k Then the 1900/mo yields a 16.9% CoC

  Which sounds much better right?  Take the rest of the 500k you save and go buy other deals.

Cheers,

Buddy

~3% is what I get as well on my own calculator. ROI is based on the $'s you invested:

$625,000 + $10,000 closing or so even 1900/62500 is only 3%

I have not visited the 1000 W site, but the location is not the best in terms of traffic to downtown.

I was surprise at where is was compared to what the brochure words indicated.

I have invested in the Student housing offerings of Nelson Brothers.

Have you been on one of Leslie's tours?

I have attended a couple of PASSCO webinars and have visited there office in Irvine with @Leslie Pappas.  I have read @Leslie Pappas Book on DST's. I have invested in some DST's using my Self Directed IRAs. I do plan to visit Marisol at toward the end of next month.

I plan to work a 1031 Exchange into DST's in the near future once I have a firm closing date on a property sale currently in due diligence. I would very much like to continee discussion on the 1031 property to DST process.

I don't see a reserve for Repairs and Vacancy or a CapEx. Have you included that in Operating expenses?

Not sure of experience level, but to me this sounds like a VERY risky investment. I live in an upscale gated golf community with several still vacant lots. The development is about 25 years old. Recently a builder built 3 spec homes in the community. They have been on the market at least 3 months since they were finished. This is Charleston, SC where Boeing, Volvo, Damlier Benz (Mercedes)... Business is booming. You must know the local market very well. Our HOA decided to save the golf club by requiring all new owners to join. Result is over $500 /month added cost to buying a home of $400-700K. Result slow sales and large discount in home values.

Be sure to know your market before jumping in!

Cheers.

Why is it empty?

I would try to wholesale it for perhaps $75K, take your profit in a 1031 exchange and buy a rental in your new location.

A Home Equity Loan or Line of Credit (HELOC) on your parents home, which is in your name, should be able to be spent on anything you want to do with it.