All Forum Posts by: Jon A.

She isn't going to pay the overdue amount and you should assume that she won't. She will tell you to take it out of her deposit. I would post a 5 day pay or quit on the door and send her a photo of it through text. If she does not perform then proceed with an eviction for holdover tenancy. The longer you wait, the longer it will take if she does not perform or does not respond. 

Call Crown Electric. I know everyone is very busy at the moment but that is who I use when I have a problem. For plumbing I use TP Howard and for HVAC problems you can try Messer Heating and AIr or American Air. Another option is MB Haynes although they are more than likely the most expensive but they do it all.

Keep in mind that you need 20% down usually to get around the requirement of mortage insurance, although some on this thread have obviously said they can do 15% without it. It sounds like a lot up front, but so is mortgage insurance when you look at cash flow. 

Don't forget to calculate the Heloc into your debt to income for qualifying for the home you are planning on buying in case you haven't considered that part. 

You can look up span charts that will tell you the the length, width and spacing of joists for a live load of 40 pounds per sqaure foot or 40 psf which is basic residential code. I was told by an inspector years ago that is the equivilant of people standing shoulder to shoulder on the whole deck. When I was working for a well know deck franchise I was taught to always double these joists to accomodate a hot tub due to the weight. I know that is over kill to a lot of people but this company had engineers on staff and we built a lot of decks. This will also depend on what type of decking you use. Wood vs composite and the design of the deckboards. Composite decking requires tighter spacing on joists and is also required if you are running your deck boards at a diagnol. If your joists are setting on top of a beam then the span you are calculating is from the beam to the house. Not the whole length of the joist. Buncombe County has a printout you can google to see their mimimum requirements although they do always seem to change. 

I will chime in here as I have been watching the market around Asheville change signifigantly over the last several years. Everything around me feels like an STR. When were looking to 1031 I just felt like the market outside of Asheville was so saturated and I really couldn't see past it. We sold a LTR for various reasons and just went ahead and paid the taxes. Everything from Black mountain all the way to Lake Lure and beyond seems like someones vacation rental mountain cabin in all directions. I see homes now being sold in town with home stay permits and the prices reflect that which has even driven prices in Asheville up higher where STRs are not allowed. So many people paying cash for homes I don't even know you compete if you are looking for a decent ROI. Even the little coastal towns that were somewhat approachable for your dream retirement vacation home are so out of reach financially it just seems like it doesn't make financial sense.

I am not an expert on the subject by any means but it is my understanding that you would have to rent the SFH for 2 years and then you could move into it without paying capital gains. BUT, if you were to ever sell it then the capital gains would kick in at a depreciated rate. My understanding of the 1031 exchange is that is serves two functions for investors in the end. 1) It allows you to pass on your investments to your children without them having to pay the gains tax. 2) It can allow you to move into your dream home if you do it in the way you described above but then if you ever move or sell the gains kick in , so you better really like that dream home and hope nothing ever happens that would force you to have to sell or move.

I think a lot of this really depends on your end goal. If you never intend on selling an investment property and paying down the prinicipal and want to live off the rents and pass this down to your children then it makes perfect sense to keep upgrading and expanding your portfolio with a 1031 exchange. An investor could also do a cash out refinannce to pull some money out tax free but that would upset your cash flow accordingly. 

But if your end goal is to sell them all off with a windfall of cash then you will pay the captial gains. At least that is my understanding of it. @Dave Foster was a huge help to us when we were trying to decide what to do. We don't have any children and I don't think our plan is to become real estate moguls living off the proft of rents for the rest of our lives. So we just sold one and paid the taxes. One thing that Dave said that really stuck in my mind is that noone goes broke paying taxes. If you have to pay taxes it means you are making money. I don't want to misquote him but that is how I remember the conversation going. Maybe, he will chime in. 

@Dave Foster

I think you will find that travel nurses are expecting lower prices due to their profession and stipend. The market will dictate mid term rental prices. Not what nurses are willing to pay. But, I understand if you are wanting to cater to that profession out of a need for health care in your area. That said, you can use furnished finder and a few travel nurse fb groups. We didn't see any results from any of those places for our mid term rental and ended up finding tenants through air bnb for our furnished montly rental. 

I would refinance. My concern with a heloc is if you don't use it they can revoke it. You could pull a heloc and cash it out and put it in savings, but if that's the case then I would just refinance. 

The most cost effevtive way would be to move into it and refinance it as owner occupied.