All Forum Posts by: Jack Martin

 Hi Jack,

Can you please explain more about the rent survey? How did you design it? what questions are included and who did answer your questions? 

 Well, Jack, I shouldn't have jumped on you. People talking about spending money primarily to get a deduction is one of my pet peeves.

My primary criterion is, will it make me money. I also evaluate how much work is involved in ownership, and is it an asset I want to own.

Hubby and I are in our early 60s, so we aren't building an empire. Our real estate investments are all in the small town that we call home. We buy distressed properties and make them into nice rental houses. Upfront that is a lot of work, but once it's done and a very well-screened tenant is in place, there is very little to do.

Do I want to own it? In regards to real estate, there are a few questions we ask ourselves. Location, of course, is first. Is it where we want to own? Will it make a good rental? Is it too big/small? Is there too much/little land with it? Is it too old? Will we be happy or ashamed to say we own this?

And will it make us money? How much will we have in it once rehab is done? How much rent can we charge? What is the outlook for appreciation?

All that is, of course, evaluation of potential new investments. There is a very different way we evaluate investments that we already own. But this post is already over-long.

After sales i'll have about $300k.  I'm experiencing analysis paralysis.  If I want to save ~$60k in cap gains tax i need to 1031 into something.  Or, should i just pay the tax and throw it into the S&P500?  I figure over 10 years that's only 2% a year in taxes.  1031 isn't a ton of savings spread out.  People here advise against paying all cash for a house but at the moment my market has negative cash flow on rental properties at 20% down.  Should I buy a nicer/newer primary residence, rent it for 24 months, and then move in to satisfy the 1031 requirements? s&p 500? or some other strategy?  

Looking for general information or advice on using DSCR Loans as a cash out refinancing. If you have used this option before or are a lender who has helped clients with this type of product please comment.

I am looking at using this type of loan for BRRRR projects and would like to see if it's a strategy that could work.

Background: a couple years ago my brother had his wedding rehearsal dinner at a winery near my mom's house. We only knew about it because a friend of the family lived on the same road as the winery since the current owner does no marketing or anything. Nice location but could do with improvements.

Just this week my mom called to say that the location was for sale for sale. The asking price is $1.2 million. How would you approach hard money lenders or a bank regarding financing of this/ what other options for financing are there?

My mom, who loves event planning and has catered numerous events, and I have talked theoretically how to improve the venue and various other ideas to make it a profitable investment. Initially she/we would focus on turning this into an event venue. We would put a hold on the winery side of things but keep that infrastructure so that we could eventually produce ourselves, not the main goal currently, or lease it to a winery or someone wanting to use those resources already in place.

Thanks for your input!

I want to buy a 10000 sqft 5 unit commercial building but the owner wants to back out and keep leasing. The owner is 80+ and just cant give it up. The price to sell is $450k. It currently brings in $4500 a month with potential for $6000. What could I offer the seller in terms of a creative deal where he could be convinced to sell?  Lease to own ? What else is there?