All Forum Posts by: Kira Golden

@Micki M. Sure. call or email me and we can set up a time. 

I think the trend for 2015 will be all about sub market specialization. What I mean by that is that the general US population used to move as one. i.e. market went up market went down by asset class across the US as a whole. Since 2005 this has not been the case. Increasing market volatility and asset class specialization is driven by three things: 1) Consumer demand, and 2)Banker options, 3) Regulatory climate.  

To the first point, areas such as downtown Denver, Houston, have lots of tourism demand, but an area like Dayton Ohio is better served by value add rehab. 

To the second point, wherever the banks "feel" the demand is is where they are more apt to lend. Low cost lending drives investor behavior. If you can get a 0 down 3.5% 30 year fixed to buy a rental that is much more attractive than 20%  down 15% interest fix and flip loan. So as banking loosens up investors will be driven to invest in product that the bank favors. 

to the last point, the regulatory climate has a large impact on investment strategy. For example, I won homes in Sedona, AZ. While this would be a GREAT market for Vacation rentals  the city has strong policies (and consequences) against short term rentals. On the other hand I have units in Puerto Rico where the government gives tax invectives fro condo  vacation rental in the way of only taxing 10% of my total income form the units.  These factors impact the overall strategy. 

To have success in 2015 I suggest starting by CLEARLY defining your goals and then evaluating the specific sub markets you are looking to invest in and drill down to a strategy that makes the highest and best use of that market. 

Lastly, no matter what strategy you use make sure you diversify. your portfolio should have various asset classes as well as geographical exposures, and EVERY deal you do needs to have three exit strategies or DONT DO IT. What I mean by this is your vacation rentals should also cash flow if they had to be long term rentals, and they should be purchased for a price that could be flipped for 5-10% under market if you needed to exit. 

We have some turn key vacation rentals in PR. I truly believe you are in one of the best markets in the US to be an investor right now. The good and the bad about PR is that it is a few years behind man land US. This means prices are still down and there are a LOT of opportunities. Good luck. 

There are structures that can make this possible, but it is VERY easy to do it wrong. As Victor said, most states will go after you for state income tax for any activity you do in the states. The PR law is focused on export services. This means your PR business must provide services to your CA business.  There are many subtleties to setting this up correctly. I just went thought it last year and I am filing my first return under the PR tax structure.  I am happy to connect you with the professionals I used to set things up. Just let me know if you are interested. 

Gary, 

I own 30 vacation rentals in Cabo Rojo we bought last year. We learned ALOT. Too much to post about. Did you move under la 20 or law 22? 

Hi. I tried to call you just now. I did buy that property. You know the old saying price or terms.... I couldn't pass it up. When all is said and done we should be in a good position. I know that project has a LOT of hair on it, but that I what I specialize in. Its only 321 units after the fire the other day and one a while back, but we will rebuild those units down the road as well. We aren't expecting any return for at least two years, but fortunately my husband and I do not need cash flow now, we are building for the future. I would love to hear your thoughts on that area.  The overall topic brings up an interesting discussion can any property be a good deal for the right terms....?

I have been an investor for over 10 years. I started in single family and then branched out geographically to three countries and 5 states. Then diversified by product, office space/ smaller multi family. This year I am doing institutional size assets for the first time (300-500units). Has anyone worked in that size asset class that can give some feedback on what mistakes to avoid? 

I just closed on a 300+ unit mulit family in Dayton Ohio. I am looking to connect with the local investing community for feedback on the area and some ideas on how to best target tenants.