All Forum Posts by: Alex Olson

Alex Olson has started 14 posts and replied 2086 times.

Originally posted by @Beliria Sims:

@Alex Olson That does help, Thanks! My broker has been on me pretty tough about making those expired calls. I'm not sure why I've been so hesitant, but I know I need to change my thought process about it, and just MAKE THE CALLS. Thanks again!

Set aside 1 hr per day to make at least 5 calls with verifiable information. Do this for a week and you will see how much more confidence you get from this. Keep going!

1 Vote

Originally posted by @Jeff Hedfors:

We are completing an exchange in St. Paul, MN. While keeping our primary residence in Arizona, we want to stay at the property for a couple of months to get it rent ready. Is this going to cause any trouble with the 1031 exchange?

Since you have a primary residence and a mortgage on it this should be no problem. Make sure you hold it as an investment property for a year and a day (rule of thumb) to help with your 1031 exchange case. Hope this helps!

0 Votes

Originally posted by @Destin E. Thomas:

Hello,

Rookie investor in need of some guidance with regard to a potential long-distance rental property in Kansas City, MO. My aunt is going to be selling her Single Family Home (currently off-market) and wants about $220k-$225k. It is in good condition and she says just needs a new roof (I’d still get it inspected), and given the closest comps in the area are about $260k at minimum, I inquired about buying it from her (for both the discount and the immediate equity of about $35k-$40k).

This would be my first long-distance rental property (and my first property in general), so I’ve run the analysis numerous times and just can’t seem to make the numbers work (even with the discounted price). For those of you experienced investors (and even better anyone based out of Kansas City, MO or with experience investing in this city), do you have any opinions/suggestions/critiques about the inputs I used for my numbers (below)?

P.S. I used a lot of conservative rules-of-thumb figures (given that I am a rookie) in my numbers obtained from Brandon Turner’s books, as well as from podcasts, webinars, blog posts, and YouTube videos of other investors, until I gain the experience to know how to calibrate my numbers organically.

P.P.S. No seller/owner financing because she is getting too old and sadly might not be around much longer, so she's not going to want to postpone cash payout.

If anyone can provide any input, it would be very much appreciated. Thank you!!

Purchase Price: $225,000

Closing Costs: $5,625

Misc. Costs: $2,500

6-month Cash-Reserve: $9,204

6-month Holding Costs: $6,000

Approx. ARV: $260,000

Approx. Repair Costs: $23,000

Down Payment: $56,250 (25%)

Interest Rate: 3.8125%

Points: 2%

Loan Term: 30 Years

Approx. Gross Rent Income: $1,743

Property Taxes: $277/month

Landlord’s Insurance: $238/month

Repairs & Maintenance: 10%

Vacancy: 8%

Capital Expenditures: 10%

Property Management Fees: 10%

Electricity: $0 (tenant to pay)

Gas: $0 (tenant to pay)

Water & Sewer: $0 (tenant to pay)

HOA: $33

Garbage: $10/month

Lawn Care: $100/month

Pest Control: $50/month

Snow Removal: $50/month

I would stay away from this type of deal. It is not a typical KC flip or rental property. It simply needs to be sold. Or fixed and sold but you won't really make much money on it.

2 Votes

Originally posted by @Jake Lee:

Hi my name is Jake. I live in the bay area of California but have lived in multiple areas of California. I currently have 1 property but am looking to meet fellow members from Kansas City, Atlanta, Sacramento, or San Antontio region of Texas.

My goal for 2021 is to close 3 properties, and I am a Jack of all trades in life. Nice to meet you all

I recommend that you owner occupy your first place. And continue to do so until you can no longer stand living next someone that you rent to. Your wealth will explode over time and you will be able to do so much with all of your real estate.

one thing that is not in books much is that location does really matter. You can gain forced appreciation by buying in established area or in definitive path of progress. Hope that helps!

1 Vote

@Max Kats This is the great thing about joint ventures. You can structure it however you want to. There is no rule. If this is a close friend or family talk it through with your concerns and make sure he shares his. It is important that you are both happy with the deal. That is all that really matters. I think the deal you outlined sounds reasonable. If there is a way to make it simpler, that would be better. Hope this helps provide comfort.

1 Vote

@Natisha Phouphayly Is this a flip or a rental? What location is it in? If you put granite in, how long will it take to pay off the granite countertops? I would only put granite in if the area demands it. If it is a rental and the area does not demand it, I would look at doing IKEA countertops or something that is more new age but still laminate. It is SOOO much cheaper and still looks and feels awesome. As for adding value - depends on if this is a rental and what market you are in. In KC, the best bang for you buck are kitchen upgrades, adding a bathroom if possible, adding a bedroom if less than 3 bedroom house, and upgrading paint and flooring. You can also upgrade lighting really cheap by getting home depot/lowes fixtures. Hope that helps!

0 Votes

Originally posted by @Raymond Turner:

Hello everyone,

This is my first post on BP, but I've been listening to the podcasts for several months now. I own a rental property in Washington State that cashflows only a few hundred each month, but has a large amount of equity according to online sources such as Zillow. Roughly $140,000. I do not have a large amount saved for down payments, but I am working on that by saving as much of my main source of income as possible and working a side job. In addition to that, I've been driving around in my spare time and writing down the addresses of homes that seem to be in need of repair, although I'm mostly only seeing homes that have drooping blinds or peeling paint, not many true distressed properties. I'm also not entirely sure what to do with these addresses as I am not a wholesaler. However, I am beginning to work on some real estate classes and may attempt to get a real estate agent license, but mostly just for the knowledge.

With that information, I have several questions.

Would you consider a HELOC on the Washington property a good choice, or is it a better choice to Cash-out refinance and essentially lose all cash flow?

Do you have any recommendations on how to find a lender that might provide a HELOC on investment property equity?

Do you have any recommendations for wholesalers in the Tempe, Arizona, or Pensacola, Florida areas?

Do you have any other recommendations for networking outside of the BP website?

Thank you for your time!

I would 1031 exchange out of that property in Washington and put that $140,000 of equity into a midwest market. You can get a nice 4-8 unit building in the KC market that is low risk, 8-10% CoC + solid forced appreciation. Hope that helps! And nice work on having some property to build wealth!

1 Vote

Originally posted by @Christine Krizenesky:

I recently used a personal HELOC to purchase a flip house then rehabbed and sold the house. I decided to use a 1031 exchange for the tax advantages and our accountant told us we can't use any of the proceeds to pay back our personal HELOC. Have any of you ever used the proceeds to pay back your personal HELOC and how did you do it?

I don't completely follow but you can pay back your HELOC with any funds you have as long as it is legal and conforms to your HELOC terms. I would speak to a different tax accountant who is an expert in real estate.

1 Vote

Originally posted by @Uzair Syed:

Hi,

I've read prior posts about permissibility of renting a 1031 exchange property to family members (as long as it is fair market rent and well-documented).

Is it permissible for the parents to leave the property in inheritance to the child that was renting the property from them?

Ex: Parents do a 1031 exchange of a multifamily home to a SFR (or commercial property), which they rent to a child at FMV. Then that property is designated as inheritance for that child who is renting it.

Is that allowed?

Thank you

I think you guys will be just fine with your 1031 exchange and renting it to your bequest. Make sure you document EVERYTHING. Hope that helps!

0 Votes

Originally posted by @Angelique Tinney:

Advanced 1031 Exchange Case Studies

Dave Foster did a great presentation for us a few weeks ago on the basics of 1031 Exchange. This will be a continuation with more advanced examples.

Watch the first meeting here:
https://drive.google.com/file/d/1bbzxNyUERVSO9CRuU7Jc3h_TVXfJvgu_/view?usp=sharing

Try to watch this first as we will not be reviewing the basics to much in the next meeting.

Guests $20
FREE Members
First time guests can attend for free. Find the promo code during registration. Wow this seems super valuable. Is this only for CA people or can anyone attend? Dave Foster is awesome!

0 Votes

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All Forum Posts by: Alex Olson

Alex Olson has started 14 posts and replied 2086 times.

Post: What Works for acquiring more clients

Post: Staying at 1031 Exchange property during rehab

Post: Kansas City, Missouri Rental Property Analysis HELP!!!

Post: When did you experience a rehab lifehack/revelation?

Post: partnership structure- is this fair?

Post: What renovations will significantly increase appraisal value?

Post: What would you say is my best option?

Post: Using Personal HELOC to buy a flip house

Post: 1031: Rent to Child, then give in Inheritance to that child?

Post: Advanced 1031 Exchange and Case Studies