All Forum Posts by: Kurt Pourbaix

I think returns are relative.  I have a number of rentals in Northern Colorado, but the market is so hot here that the numbers for cash on cash returns are now very low.  I am now looking in the Phoenix area because returns are so much better than Colorado and I have a condo down there.  Casey, how are you finding the newer MF repossessions?  I would be interested in learning about that.

Hey Craig,

I would also be interested in hearing who you use for Property Management.  Thanks.

If you use a water submetering service, I would like to hear what you think.  Is it a good way to go? What are the costs, and is it cost effective? What do I need to know, and what are the drawbacks that you have run into?  What company do you use/recommend?  Thanks for your help.

Anyone have a recommendation for a good multi-unit property inspector in the Phoenix area?  Thanks for your help.  

Thank you so much for the responses. That is very helpful. We do operate within an LLC, but our arrangement for the rehabbing is a Joint Venture, with the other party also operating as a LLC. I appreciate each of you taking the time to share your perspective on this.

Thanks Jonathan - that seems like a good approach.  I appreciate your help.

Hi Neil,

Thanks for responding.  Yes, I believe he would report his profit as a short term gain and report the share that he gives to me as a cost of the sale (like commissions, accrued interest, taxes, etc).  But since I never own the asset, I am thinking that it would not be a capital gain for me.  All I do is lend him money.  Does that help?

We partner with a guy who does fix and flips.  He buys the house and does the rehab.  We loan him the money both to buy the house and do the rehab and we share in the profits when it sells.  We don't charge interest per se.  It is not a capital gain because we never own the property.  It doesn't seem like it would be a business activity (subject to SE) because all we do is lend the money.  Would that mean that is it an investing activity (and classified as Investment income)?  And if so, would expenses of running our business be considered investing expenses and subject to the 2% rule?   Thanks for your help.    

I am new to the Phoenix area and I am in need of a good bank or other lending institution who will lend to real estate investors.  Any recommendations?  Who are you using?  

I own multiple rental properties in Colorado and have a great lender here, but they do not do out of state loans.  I am currently under contract on my first rental property in Phoenix, and plan to buy more.  Because of the number of rental properties I have, I no longer qualify for loans that will be sold on the secondary market, so I need a lending institution that keeps their loans in house, that works with real estate investors, and will offer good loan terms.  Who do you recommend I go to in the Phoenix area to get this?  Thanks for your help.