All Forum Posts by: Kenny Tran

Hi all,

Just wanted to get some advice from the veteran investors out there. I'm 29 years old and bought my first investment property two years ago for $130K. I purchased it well below market value (which was around $190K at the time), and I was able to BRRRR it—so I currently have zero money invested! Today, it's worth about $200K. I cash flow around $60 a month from it, and I've got about $70K in equity. The low cash flow is mainly due to the 8% interest rate, but hey—I'm not complaining.

Now, I’m looking to “move up” and use a 1031 exchange to roll that equity into a duplex with stronger cash flow. Based on some rough numbers in my area, one side of the duplex would cover all expenses, and the other side would be pure cash flow—around $1,600/month. So I’d be jumping from $60 to $1,600 in monthly cash flow.

My strategy is to move my equity into something turnkey and with better cash flow. My question to all the veterans is: what do you think of this approach? The only downside I can think of is that, since I’d be buying at close to retail value, I probably won’t see much appreciation. Also, the property barely appreciated in 2 years due to the current economy so should I wait a little longer to see it appreciate more or cash in that 70k equity and move on. I understand its a personal preference on what to do and I am in no financial strain to need to sell right away.

I'd also love to hear from some veteran investors who started out like I did and worked their way up from SFH to apartments or commercial buildings. Hearing your stories would really motivate me!

Hi all,

Just wanted to get some advice from the veteran investors out there. I'm 29 years old and bought my first investment property two years ago for $130K. I purchased it well below market value (which was around $190K at the time), and I was able to BRRRR it—so I currently have zero money invested! Today, it's worth about $200K. I cash flow around $60 a month from it, and I've got about $70K in equity. The low cash flow is mainly due to the 8% interest rate, but hey—I'm not complaining.

Now, I’m looking to “move up” and use a 1031 exchange to roll that equity into a duplex with stronger cash flow. Based on some rough numbers in my area, one side of the duplex would cover all expenses, and the other side would be pure cash flow—around $1,600/month. So I’d be jumping from $60 to $1,600 in monthly cash flow.

My strategy is to move my equity into something turnkey and with better cash flow. My question to all the veterans is: what do you think of this approach? The only downside I can think of is that, since I’d be buying at close to retail value, I probably won’t see much appreciation. Also, the property barely appreciated in 2 years due to the current economy so should I wait a little longer to see it appreciate more or cash in that 70k equity and move on. I understand its a personal preference on what to do and I am in no financial strain to need to sell right away.

I'd also love to hear from some veteran investors who started out like I did and worked their way up from SFH to apartments or commercial buildings. Hearing your stories would really motivate me!

Just curious on how a REIT works? Do you invest in a fund and get paid monthly? is it a set ROI capped at a certain percentage? Where do you find REITS?

Just wanted to ask for personal knowledge and nothing more

2 questions:

1. Does your 1031 exchange have to cover the whole down payment of a property? For example if my profit from a sale is 50k but I need 100k for a down payment for the next property can I bring in the remaining 50k or does the 1031 have to fully cover the down payment of the next?

2. Can I sell a portfolio of my rentals and 1031 it into 1 building like an apartment? I have 6 single family rental properties and was wondering if I can just sell them as a package and 1031 the combined profits into 1 building?

Hi everyone, I currently own 2 rentals under my corporation. My mother let me use some of her line of credit to purchase both properties. One house I borrowed 80k and another I borrowed 30k. The interest on the credit line is currently around 8%.  My father who is in the loan business told me I am qualified for refinancing and getting a rate at 6% but the only catch is I have to put the rentals under my personal name to qualify for the 6% rate. It has something to do with my W2 qualifying me with my income or something. I forgot the details on what that program is, but my father said I qualified for it.

I always hear investors say to never put rentals under your personal name and I followed that. My father said since its only 2 rentals, I shouldnt be too worried compared to having 20 under my personal name. I want to refinance and pay back my mothers line of credit and both houses I have enough equity to do so. I will cash flow great still at 6% or 8% too so my question is what would you guys do in my position? 

transfer the houses to my personal name and get a 6% interest or keep the line of credit until rates drop im guessing closer to the end of the year? but the latter is all speculation in hopes rate drops by the end of the year and I dont like to do business that way under the assumption it will drop.

This question is for the RE investors 45+. I think thats a big enough age gap where investors in that age group lived by different rules. Technology wasnt the same, info wasnt the same, youtube wasnt established, they definitely didnt have bigger pockets to help them haha so my question is

1. How did you learn about RE investing? who taught you the hidden secret of owning rental properties instead of just selling RE as a realtor? I feel like back then it was like a hidden secret for the rich ppl and today everyone is RE investing haha.

2. How many years into your investing career did it take for you to truly feel like you "made it". I know everyones answer will be different and success doesnt have a timeline but at least I can take the average of everyones answer

3. After all these years investing, did life turn out the way you dreamed? Im sure most of you have been investing over 20 years and I wonder if what you promised to your younger self came true

I am 26 years old and have 2 rental properties and I am continuing to grow and add more and just like to learn from those before me. It motivates me talking to older successful people who are living the life I want that I know I will have one day.

Hi everyone, 

I was wondering if their is a math for land appreciation? For example, empty lots in my area are selling for 10k. Ive been buying and building houses on the lots but I was wondering if I started accumulating a land bank would the land appreciate at all? 

I am currently building houses to sell but I know true wealth is in ownership. I plan to switch from building and selling to building and renting in the next 7 years. Every house I sell I plan to use some money and buy some lots to hold as a land bank and when ive made enough money, I will build rentals with the lots I have accumulated. I was wondering if I bought lots now for 10k would it appreciate much in 7 years?

Hi everyone, I  wanted to get some advice from everyone.

I recently bought a property in Chicago and I inherited the tenant. The house is a section 8 house and the tenant has been there for 6 years. She is a 65 year old single retired teacher and her rent is $1,000 a month. She has a 2 year lease that is due January 2024. The comps as of right now are around $1,200 for other Section 8 homes and I assume by 2024 it will go up slightly. Without going into detail, I cashflow $550 per month on this house.

When her lease is up, I do want to increase her rent by 100-200 but to be honest, the human aspect of me is battling with the business side of me. She is on a fixed income and I know any rent increase would give her less spending power on herself. Of course I know this is business and I have to put my feeling aside

I guess what Im looking for is some words of advice from seasoned investors who have dealt with similar situations and to help me get a different perspective on how to approach this mentally and see it more intuitively than emotionally. Does it come down to how greedy I want to be? 

Thanks everyone

 Its a ground up construction home I built with a partner that we sold. I have deductions but I was just seeing if there was other deductions I can do 

Hi everyone, I recently sold a house and made 80k net profit. Can I defer paying taxes on the 80k if I bought an investment property with the earnings? I currently am in the process of buying 2 properties and putting down a total of 50k. I am using the proceeds from the 80k to purchase these 2 investment properties but I dont know if its possible to lower my tax bill by purchasing these.