All Forum Posts by: Leslie Pappas
Leslie Pappas has started 1 posts and replied 820 times.
Post: 10 Ways to Strategize & Save on Your Taxes
- Professional
- San Francisco, CA
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Originally posted by @William Allen:
Let’s talk about taxes. If you are already groaning, you are going to want to read this. The trick with taxes is creating a strategy a year ahead, executing your plan during the year, and reaping the benefits the following year.
- 8. Have you heard of doing a 1031? This year was my first time taking profit from the sale of one property and investing it right back into another property.
Nice post. Saw this and figured I'd share this,
Post: 1031 exchange process
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- San Francisco, CA
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Originally posted by @Dave Foster:
Kay is spot on with her recommendation to look into DSTs if you're wanting to go passive. They are basically a syndication whose structure has been blessed by the IRS for 1031 exchanges. Other than that you can look at any type of real estate anywhere in the country for your replacement.
@Anita Ahuja, feel free to check out my blog here on BP for more info in DSTs. I help real estate investors re-invest their 1031 Exchange proceeds into DSTs.
https://www.biggerpockets.com/member-blogs/7993-cashingin-tax-free-1031-exchange-and-dsts
Post: New investor here to network
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- San Francisco, CA
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Welcome, sounds like you are taking all the right steps. This site is great for networking and getting a ton of real estate information. Best of luck!
Post: Rental property or stock market?
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- San Francisco, CA
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Originally posted by @Eric D.:
I own two multi-families free-and-clear in a hot area of New Jersey. I am thinking of selling one in order to have less headaches and take the money to buy high dividend stocks. Thoughts?
Each multi-family clears A net profit of $30k.
I figure I can get $625k to $650k for the house.
After realtor fees, taxes, etc. think it’s worth it to sell and plunk the money down on some high dividend stocks (ie Exxon 5.7% and REITS)? Or should I stay put?
This is an instance where a 1031 Exchange can make a huge impact. If you have owned a rental property for a significant period of time, when you sell most investors end up paying somewhere between 30-40% in taxes. Completing a 1031 Exchange allows you to defer that tax and depreciation liability and invest in other properties.
If you're an accredited investor and looking to defer your capital gains tax but doesn’t want to be a landlord anymore you might consider reinvestment into DSTs (Delaware Statutory Trusts). They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse.
If I can help in anyway, please feel free to contact me, feel free to check out my blog here on BP. Leslie
Post: 1031 exchanging up to a better town and deal
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- San Francisco, CA
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Congrats! Great to see you doing pretty well with taking all the right steps.
Post: Starting out in Los Angeles
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- San Francisco, CA
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I live in Silicon Valley (similar to LA) and I specializes in real estate. I can tell you what people here have done to set themselves up for retirement. There are two types of investors here:
1. Buy or inherit and hold for a long time, then cash out and redeploy equity into potentially higher cash flowing properties or other investments.
2. Buy or inherit and hold all their lives while working the properties for income.
I've seen teachers, firemen, software engineers and all sorts of people utilize both strategies successfully. One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible. One way or another, they are building their net worth.
Building net worth is how you may possibly retire with fewer worries. If your retirement utterly depends on having adequate cash flow from your properties, any downturns will cripple you. AND you must maintain adequate reserves to take care of the disasters that may happen.
Most of my clients fall into the first group above. If you are or become an accredited investor, you can buy into institutional grade $50-125M projects with as little as $100,000 and diversify.
So my advice- build your equity.
Best of luck! Leslie
Post: Mobile Home Park Investing
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- San Francisco, CA
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Originally posted by @Debbie Mayerson:
@Leslie Pappas Thank you. New York. Are you in this business?
I'm a New York native!
I'm not, my firm specializes on the syndicated real estate side, mostly reinvesting our investor's 1031 proceeds into something hands-off for them.
Post: Keep home as rental in CA, moving out if state
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- San Francisco, CA
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Originally posted by @Justin Anspach:
I live in the Central Vallet of California. I am considering moving out of state. I am trying to discern if keeping a CA home will be more trouble than its work if I Move away. Rent will be double my current mortgage. So Cashflow is excellent. But CA as a whole is declining in quality and stability. So Should I cash out now? and just take while the getting is good? Or is this viable long term investment?
One question to consider is if you're looking to be an active or passive investor?
I think @Dave Foster and @Kathy Henley gave some great advice.
There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.
A very good source of local analysis is rereport.com.
Post: Mobile Home Park Investing
- Professional
- San Francisco, CA
- Posts 876
- Votes 301
Originally posted by @Debbie Mayerson:
I am researching mobile home park investing. After many months of learning and reflecting, I have narrowed my REI niche to commercial multi-family and I have landed on mobile home parks.
Is there a mobile home investment group/forum on BP or FB that I can go to? Also, can anyone share their MHP experience with me. I live on Long Island and will have to manage from afar. I know this is possible-but, please share your thoughts on this.
Also, if there are any female investors on here who can share their real estate investing experience in mobile home parks, I would truly appreciate it if you would reach out.
Hi Debbie, mobile homes can be a great venture for investors and like others I would recommend seeking out the advice of an expert who works in the industry every day, knows all the players and their track records, and has performed due diligence on properties. What part of the country are you at?
Post: Unbelievable tax rates are killing my cash flow. Hold or sell?
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- San Francisco, CA
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Originally posted by @Jeff M.:
Hi. I would like your advice on one of my three rental properties.
I purchased this SFH in Cook County, IL., in 2018. I paid 168,000 and put 25% down. Over the past three years, I have raised rent to 2,300 (It's Section 8, great tenants). I have also refinanced once, and have a 4.5% loan, owing 122,000. However, the taxes in this county are unbelievable, and keep rising. I have appealed successfully once, but next year I will pay an astonishing $11,000+ in property taxes. Or 900+ monthly. It really kills the cash flow, which is appx. 250 monthly. The tax situation continues to be controversial in this area, lots of news reports of people not being able to afford it, threatening to leave the area. My fear is this will impact the future of the area, and this property. Property market is strong in the area, somehow, and the Zillow estimate for the property is 200+. I don't know whether to hold it, or sell it?
Yes, these taxes are real, I know they are much higher than other areas, even California where I live.
I would like to refinance, but this property is held in an LLC and the best offer for a refi is appx. 4% and it's expensive.
What should I do?
Thanks and have a great day!
Hi Jeff, if you ever want to take your appreciation out of IL and defer your capital gains, you might want to also consider syndications if you qualify as an accredited investor. If you like to be somewhat active, great, do that locally but for distance and diversification, it's worth looking at being a part of institutional grade $50-125M projects in strong markets that offer potential cash flow, tax shelter and appreciation.
Happy to help, more info on my blog here on BP.
https://www.biggerpockets.com/member-blogs/7993-cashingin-tax-free-1031-exchange-and-dsts