All Forum Posts by: Stone Jin

@Michael M. So if I read your updates right you haven't worked in 2 years?  Have you just been living on your savings?  

@Justin Petrides No way. For example one of my contractors who rented to his sister is now in the process of taking her to small claims court I also get requests from my contractors to rent my property. I always tell them that if they want to rent from me prepare to never do business with me again. They usually pass on that offer. Why put yourself in a difficult situation when it can easily be avoided

Can you just refinish the cabinets?  On my rentals when the cabinets get beat up I just refinish them white add hardware and they look great.  I have a couple of contacts that do this type of work.  PM if you are interested in them.  I've used them both multiple times on my properties.

Why don't you just raise the rent and then do a cash out refi. at 75% LTV you can pull out 90K, if you sold unless you can 1031 exchange into something fast, you would otherwise pay capital gains.

146 after paying capital gains is not that much more than 90K you can get in the refi.  I wouldn't sell.  I think the Phoenix market still has some legs for a few more years as our in migration is lots and entry level home like what you have is in high demand.

Why did you keep the rent low?

Good luck,

Stone

@Shannon Morales @Mary Mitchell Here is the response from my 1031 intermediary You can sell to related parties, you cannot buy from related parties unless the related party is selling and investment property and also doing a 1031 Exchange.

@Nathan Wankel @Kyle Hern 

Indiana also has very favorable landlord laws.

@Shannon Morales

So I have 10 conventional loans in my name and am no longer able to get more per fannie underwriting.  Currently the best financing is conventional for 30 year fixed loans.  So my parents can get conventional loans.  The idea is that they would buy my property via traditional method 25% down conventional financing.  The property would then belong to them.  I would then take the proceeds from the sale and 1031 exchange more properties into my name.  They can also just buy the properties I was going to buy with cash and financing, however I've found that with cash deals you typically get more favorable terms.  Once my parents max out on conventional loans, that's when I'll have to get more creative with this.

@Mary M., thanks for providing the link, however I'm not sure it talks about my specific situation but maybe I misread it.   I've done many 1031 exchanges before but never in this manner.  I'll check with my intermediary as well but thought I'd ask the forum.

@Shannon Morales I'm not asking about like kind properties, I'm asking about related parties. I can commercial refi out but the terms are not as good as conventional financing. Since my parents still have capacity for more conventional loans we are exploring that avenue where they acquire via conventional financing and I exchange with the proceeds in to a couple SFH with the cash.

At this point of the cycle I'm not aggressively acquiring properties esp with my own cash, I'd much rather use the appreciation in equity.  Playing the small ball shell game :)

Hi Gang,

I have a property that is currently a rental.  My parents are thinking of buying and adding to their portfolio and I would take the proceeds and 1031 exchanging into some more properties.  Does this violate the 1031 exchange related parties clause?  My mortgage broker says it should be fine but I'm not 100% sure.  

Thanks in advance.

@Shiloh Lundahl has something that he offers to new investors.  I'm not associated with his investing, just know him through networks and what he offers seem very good for new investors.