All Forum Posts by: Gavin Delmas

Thank You Bill Exeter for that information!  That clears up a lot of questions I have had!

Hello Brian,

I am not from Reno but go there often.  I live to the south in Bishop.  I too have looked for property in the Reno area and you are right it is not easy with the current state of the market......  Good luck investing and if you ever have any insight to share about the area please keep me posted.

I have a Condo that I will be trying to do a 1031 Exchange with in the near future.  The details of the next purchase are still a little murky but there is a 15 unit apartment complex that I may have a chance to buy.  Problem is I don't have the down payment to purchase it on my own so I would be purchasing this place with 2 other partners.  Does anyone know if the laws allow you to 1031 exchange a piece of property into a property that will have partners?  Or am I better off selling the condo and taking the tax hit now?  Thanks for any responses! 

Thank you all for your replies!  I am starting to look into the suggestions and I have bought the book by Frank Gallenelli.  I think this will set me down the path I was trying to go.  Thanks again!

Hi all,

I need some help here please.... I have followed all the suggestions from bigger pockets and the books I have read. I have created a business/investment plan along with operations manuals. Funny thing is I only own two pieces of property, my home and a condo, but hey I am ready to go into a multifamily next July when the condo comes available to be 1031 exchanged. In the meantime I am practicing analyzing properties. I understand what IRR is I just can't figure out how to calculate it? Is there programs/software out there that the sophisticated investors are using that help them determine this metric?

Hi all,

I need some help here please.... I have followed all the suggestions from bigger pockets and the books I have read. I have created a business/investment plan along with operations manuals. Funny thing is I only own two pieces of property, my home and a condo, but hey I am ready to go into a multifamily next July when the condo comes available to be 1031 exchanged. In the meantime I am practicing analyzing properties. I understand what IRR is I just can't figure out how to calculate it? Is there programs/software out there that the sophisticated investors are using that help them determine this metric?

Thanks for posting that article Logan!  Good insight, and it helped to clear some of the confusion.

I am looking for some help on how to determine what my CapEx expenses and Maintenance and Repairs cost will be on potential multifamily properties......? The market where I live is fairly tight, meaning that not a lot of places come on the market and when something does come available that looks intriguing it is put into escrow quick. When I use the generic calculations like 10% for CapEx and 10% for Maintenance and Repairs I'm finding that I'm not even in the ballpark of getting to play. I have a feeling my percentages are too high. Can anyone help me with how to more accurately determine what those expenses will be? Are there spreadsheets available for CapEx that break down life expectancy of capital items where you can plug in the years of useful life along with the cost of replacement to more accurately determine what the percentage should be? As far as Maintenance and Repairs go I'm at a loss with how to determine that as well.....? I know it varies from property to property and the owners are never that forthcoming with it, so how can I determine what that cost should be? This is the one thing that makes me the most nervous given the fact that if this area gets screwed up in the analysis then all of the sudden it has turned into a bad investment. Any help is greatly appreciated!

@Shelby Pracht

I did decide to purchase..... Escrow should be closing in a week and a half. As for the rents, I know that there are places in the complex renting for $1100.00 and one at $1200.00 in worse condition and are not on corner lots like this one. I am confident I can get $1100.00 and then work my way up to $1200.00 eventually. The CAP/EX and Vacancy rates I used are not totally correct being that the place has not been vacant for the last three years and all appliances are new so ROI should be substantially higher. My plan is to 1031 exchange next year into a multi family.

Thanks in advance for any feedback.  Here is the scenario looking ahead a year from now.  I'm in the process of buying a condo.  Between my down payment and  discount I am receiving from my father in law I will have about $70,000 in equity.  I have a couple of questions about how a 1031 exchange would work.  I am a little nervous about selling the condo and then looking for another piece of property to do the exchange with because I live in a rural area and there are not an abundance of properties to pick from.  So my questions are:

1.  Can I identify another piece of property and put it under contract/give earnest money, then sell my condo and have the proceeds used to complete the purchase of the new property or is this disqualifying?

2.  A year from now I would like to partner with my sister on a small apartment complex.  Can I do an exchange into a situation where I would have a partner?

3.  What is a good resource to read to educate myself in 1031 exchanges?

Thanks