All Forum Posts by: Julien Jeannot

I'm in a similar situation getting ready to sell 3 condos/townhouse via 1031x. Here how we thought about the making the call, maybe that will help in in making your decision:

1. De-risk: Reposition the asset out of HOAs. Increase control and pocket the HAO fees to build reserves which we get to keep if we sold.

2. Scale the portfolio: go from 3 to minimum 6 units.

3. Strategy: 3-5 yrs out, take advantage of appreciation & YOY rent increases. Likely to lower initial cash flow, but in the long term, it will be higher then if we kept to condos.

4. Leverage the investment with a loan, but keep LTV low around 40% to 50%.

5. Tax: 1031x, I'm a CPA and ran our math. Its the best course for us and our long term goals.

6. ROI & Metrics: I use my own to match my strategy. I could care less about "best" and what the gurus days.

@Ari Evans

Inspections and sewers scopes are critical. I know flippers will do a sewers scope prior to acquisition since it can eat up margin quickly.

Like the others have said waiving the inspection does not put you in a good spot. Inspectors are generalist and as good as some are, they can miss things.

Talk to an attorney and see what is there. Keep in the mind the ROI on going through a lawsuit, it is time consuming, brings on stress, and costly.

Even if you win the lawsuit, its not guaranteed you would be able to collect. The flip could have been in an LLC which could be closed by now. The contractor's bond is likely to be the bare minimum, maybe $10k and the contractor may not have funds to pay.

 Check this website out to get a sense of appreciation: https://map.reventure.app/dashboard

@Amanda Black

Not stoping me from buying. I'm selling two condo and looking to buy 2 multi.

When rates lower in a short supply market, I'm expecting prices to rise which means bigger downpayment and higher mortgage.

Start with the house hack strategy, grab a duplex if you can.

 - Your realtor friend sounds like a good choice. I double check my client or mentee's number as well.
- Lenders can help if they also are investors. On the commercial side, lenders run their own number and help out as well.

@Jordan Jensen

Duplex all day long!

@Chad Swanson

Assess out your resources, that will dictate the path. To oversimplify the business model in acquiring leads:

1) Time: cold call, drive for dollars, network

2) Money: Mass mailers, virtual assistants, CRMs, ect.

@Irene Low

Difficult to make anything cash flow with 6%-8% down, especially with current interest rates.

Instead, look at it from a long term perspective: 3 to 5 years out. Play out a conservative appreciation, principal pay day and year over year rent increases.

You'll see significant net worth growth and the asset more likely to cash flow after you move out.

@Sharlene Ko

Call the home warranty company to figure out if it is covered. That's likely your best options. litigation is expensive and slow. You'll end up out of pocket until it is resolved and unlikely to recover litigation cost anyway.

Call the local BAR association if you choose the attorney road. In my state they refer you to an attorney with 30min free consultation.