All Forum Posts by: Alex Olson

Alex Olson has started 14 posts and replied 2087 times.

I’m currently under contract for a duplex in KCMO zip code 64131. I’m shopping for homeowners insurance and wondering if I should also get flood insurance?

Unless your lender requires it or unless you can get it for dirt cheap I would avoid it. It is not a well used expense. Hope that helps!

1 Vote

Kansas City, Missouri

Originally posted by @Andy Hayes:

Hi BP!

I own a vacation rental property that I'm looking to sell to free up cash. I have an opportunity to buy another, more expensive property and the current owner of the property we'd like to purchase is offering seller financing.

My question: Could we use a 1031 exchange and buy the new property using seller financing? Are there any legal or tax implications we should be aware of?

Really appreciate your advice!

-Andy

How are they providing seller financing? Is it that they are willing to take 2nd position on the mortgage and you are paying interest? Or are you paying in a lease purchase option. If you are wanting to 1031 exchange, whatever is on the title as owner of the current property needs to be on title as owner of new property. So, it depends on how your old property is titled and how the seller financing is structured.

0 Votes

Originally posted by @Wes Sherwood:

Hello BP community. I absolutely love these forums and have learned so much since joining BP a few months ago. So firstly, thank you to all that post and help people like myself in their RE journey. I'm hoping to receive some feedback from y'all.

My goal:

$1000 - $1500 monthly cash flow within 3-5 years.

I currently own to two SFH homes out of state. One is located in Spokane, WA and the other is just outside of Birmingham, AL. Both are currently rented and under Property Management. After all expenses (maintenance, CapX, PM fee's) they are breakeven properties.

There might be 90-100k in equity in Spokane property and 50-60k in the Birmingham property. (according to Zillow)

I had Spokane's loan modified in 2013. Because of the modification, the agreement states if and when I sell the property the bank gets 25% of the proceeds. I'm hoping I can refinance into a new loan and not have that 25% hanging over my head?

My ultimate plan is to 1031 both properties for SFH's in the Midwest (Oklahoma City and or Kansas City)
however, the appreciation rate has been really strong in Spokane these past few years, but is that reason enough to hold on to a property that is not cash flowing.

Can anyone make a good argument on why I should wait on doing a 1031 now vs later? Is Potential/speculated appreciation reason enough??

Thank you in advance for your feedback..

If your goal is cashflow, sell both of your houses and buy a few duplexes in the Midwest. I am partial to KC because I live here and believe in the long term growth. You can 1031 exchange into these properties pretty easily. Make sure you use a good QI like Dave Foster on this forum.

0 Votes

Originally posted by @Account Closed:

I'm 19 years old (born and raised in KCK) and have been wanting to get into real estate/entrepreneurship since I was elementary school! I've finally reached a point in my life where I am able to start, and I've been trying to hit wholesaling/real estate investing hard. I have about $15k saved up and a motivation to make more. Background on me: I restore classic cars / hot rods full time and do real estate in my off time. I have been networking my butt off (attending meet ups, Facebook, contacting other investors from their bandit signs, BP, podcasts etc) and reaching out to entrepreneurs/investors to get an input and see if I could provide any value in exchange for knowledge and experience.

I've been researching a bunch more on House-hacking and different ways to get into real estate. I'm looking in the Bonner springs/De Soto in Kansas for a duplex or triplex. Just trying to figure out the best way to fund my House-hack, then I'll look for a property. While I'm doing that, I'd really like to start wholesaling or even buying/flipping cheap commercial/residential properties as well. Or I might look into starting my own short term rental management business (Air BnB etc) until I get enough capital for fix and flips. Anyone have any suggestions?

I've been attempting to wholesale, but its been pretty inconsistent, and I've been doing it for 10 months with no return, although I've gotten close on multiple occasions. Does anyone have any tips on what I should focus on, or how I can restructure myself in order to fulfill my dream of becoming a successful entrepreneur?

10-20+ years from now I'd like to own and rent 30+ Single family, commercial, and multi family properties. I also want to have a fix and flip business targeting $100,000-$250,000 properties, and high end properties 600k+. Then for my less income producing business, I want to start a performance car shop for my dad and I to work at together. I know its going to take a lot of hard work and planning, but I'm really dedicated to making it happen. Just trying to figure out where to start.

Thanks everyone!

The best advice I can give you (or myself) 19 yr is to get an fha owner occupied loan. You could get something up to $400k with your $15k. It is amazing. Then you buy a duplex or in your case a fourplex and you live in one of the units and rent out the other four. You can talk to local lenders - us bank even, mazuna, cap fed, community america is great.

Then, you already have 4 units. You can do it again in a year (but you move out of your first one and buy another fourplex with with money you saved up). Do this over and over again until you can't stand living next to someone and you will have a large portfolio of rental homes!!

3 Votes

Yes. If you sell your smaller house use that to buy a bigger house, then, refinance the bigger house. I would also call around to smaller town banks. Odessa, stillwell, warrensburg.

0 Votes

@Stephen Lyons read @david greene s book on Long Distance Real Estate investing. It is essentially a step by step process. Most important thing is your broker that has a great reputation, lender, and property manager. If you have those, treat them really well, and they will treat you extremely well. Hope that helps!

1 Vote

@Oscar Moreno cornerstone bank. I would also consider selling and 1031 exchange into a bigger property with more cash flow and more upside. If you can get a duplex or bigger, I would do that. You have great leverage options right now and you can get incredible rates on purchase.

0 Votes

@Ward Sorrick I would consider selling your property you mention, ensure that you keep your funds in a QI (qualified intermediary) and then you have 45 days to identify 3 properties. I would recommend a Midwest market. You can do quite a bit with $1mm in the Kansas City market and depending on how you leveraged, have significant cash flow. Hope this helps.

1 Vote

@Matt Lawenda I have been there, like you. I have (had) four large vacation homes. My strategy moving forward is to sell or turn in to long term rentals. The set up cost, if done right and nice, is too expensive and takes too long to get back. Look at the KC market.

0 Votes

@Bailey Christenson I would look to trade up. When you are trading up look at total cash flow difference. You may not have a better deal from a cap rate perspective or IRR but if you are cash flowing more with the new property than the old property (assuming you have your income and expenses accounted for) then you should trade up. Make sure that you are confident that there will be a new property for you to close on. Also, make sure you identify 3 properties before your deadline with a qualified intermediary. If you need a great QI, @Dave Foster who is all over this forum is great.

1 Vote

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All Forum Posts by: Alex Olson

Alex Olson has started 14 posts and replied 2087 times.

Post: Flood Insurance in Kansas City Mo

Post: 1031 Exchange and Seller Financing

Post: Cash flow is King, or is it..

Post: 19 Year Old Wanting to Househack His Way To Success!

Post: Refinance options in my area Kansas City MO

Post: Long Distance Real Estate Investing

Post: Refinance options in my area Kansas City MO

Post: When to sell an inherited property?

Post: What to do with $100K?

Post: Decision: Keep or Upgrade