All Forum Posts by: Marc Rice

You could sell it to them on seller financing since you own it free and clear and act as the bank. Or you could land contract it too I believe. I'm not sure if each of these methods is treated as an "installment sale" though which may not allow you to reap the whole tax 2/5yr owner occ benefit. It's best to talk to your CPA regarding what sale methods would qualify. The easiest way is to just have them get a loan and buy the house outright. * This is not tax or legal advice, please consult a CPA and attorney *

Great article! Owning real estate has historically been a great hedge against inflation. Also I love that real estate has not gone down in pricing in EVERY recession. I believe I read a stat that said real estate has not lost value in the past 5/7 recessions. 

You can 1031 the duplex in Ohio and roll that into the condo in SC or NC to defer gains. Where is your duplex located?

The good thing about condo investing is that generally they're easier to self manage because all of the exterior work and upkeep is already handled. Also a lot of them tend to be sold more turnkey since generally they're targeted for owner occupants. So once you place a tenant in there it should be pretty passive with some minor internal repairs.

The downside is that the condo association could have a reassessment of fees and blind side you, they could ban renting out of units or restrict them (i.e. no short term rentals, can't rent out for more than 6 months out of the year, tenants need approved by COA), and just overall less control over 100% of your property.

North Franklinton (north of Broad, west of 315) is a solid C/C+ area. There are some streets that are nicer than others up there. I personally like closer to Mt Carmel West but that's pricier. It seems like most decent duplex ARV's up there are 300-350k now which is great.

You may want to find a better lender for a refinance then or consider doing commercial which is closer to 6.75-7% right now on 25-30yr ams.

 The asking price of sellers is still very high compared to where buyer's expectations are for pricing at new interest rates. Lots of competition with people calling sellers off market driving pricing up. Lots of institutional money buying these commercial assets. 

I cannot speak enough on the tenant demand - it seems healthy.

 You can find some decent $130k single families that are turnkey in the C class areas of Linden, Hilltop, Vassor Village, Deshler/Driving Park, Franklinton, Obetz. These 3bd should rent for around $1100-1300/mo depending on the condition, amenities, and if section 8/CMHA or not. If you just buy and hold and don't refinance you should be able to achieve a 7-11% cash on cash return assuming around a 40% operating expense. The devil is in the details...if you can't operate it for 40% or less and can't get rents to be $1,100-1,300 then you will obviously have different returns.

Cash on cash return formula = NOI / Cash Invested

Try the BP agent search feature. Also joining the local facebook investing groups there should help too.

High cash flow markets like Detroit and Cleveland can be very enticing, just make sure you're buying in the right areas with the right PM and contractor. The right PM and contractor WILL make or break you there.

More stable and growing areas like Columbus, OH are great for a cash flow and appreciation hybrid standpoint.

@Misook Foley

Bill explained it very well. The folks at IPX are top tier 1031 QIs and can help you structure your sale/1031.

Let's hope! Most of my commercial lenders tie their rates to the 5yr treasury. They told me they need to see the 5yr hold for a sustained period of time to consider lowering rates.