All Forum Posts by: Marc Middleton

I would have a local broker do a CMA for her on the value and then refer her to a Q.I (Qualified Intermediary) for the 1031 exchange.

But if she lived there for 2+ years, she should be able to avoid the capital gains tax unless its a substantial windfall, thus negating the need for a 1031 exchange. I know with the new tax law, it might be 4-5 years now instead of 2, but that would be a great question for a CPA.

You can sell anytime. If its a traditional mortgage than there shouldn't be any pre-pay penalties either. 

But otherwise, ask your mortgage broker that got you the loan to make sure no pre-pay.

I would just have a broker in New Jersey do a proper CMA for you.

Do you need a referral in that area? I can have someone reach out and do the CMA for you.

 Messaging you! (there is a great PM on here though, so I'm sure she'll respond as well)

 That is such an important thing to do before investing. unless you care strictly about return and not location or anything else, you MUST drive the areas. Especially in S Fla, it can change completely within a few blocks. 

 What I had to do for my clients was often get a hotel the night before, see the property at night and during the day. Meet an inspector or contractor there to go over the place. (We usually picked out 3-4 properties so it was worth my time). 

I setup meetings with property managers too if I couldn't handle managing it. 

After closing (if its vacant), I would go get the keys, clean up the place, place lockbox, place for rent signs, drop off flyers at local realty offices and offer a bonus for an agent to bring a good tenant (most realtors don't get much money to bring tenants in Florida, only $50 -$100 so I'd offer $500-$600). Then I'd mail a copy of the key to the new landlord along with closing documents. 

Hope that helps!

HI,

It rarely includes repairs done that year or repairs needed in near future. Its mostly just EGI (rent after vacancy)  - Expenses (current property taxes, water/sewer/trash, basic insurance - rarely it includes full time property management or full insurance/flood coverage). So the Cap rate is often inflated a bit. 

For instance, I have a 4plex on the beach on Loopnet and its only a 4.2% cap. Investors are balking at it because its not 6 or greater. But the 6-7 caps on the beach have constant maintenance or tenants paying 'below market' or not on yearly leases. Once you factor that in, those buildings drop to a 2-3 cap because mine is fully renovated with warrantied items and no deferred maintenance, as well as all tenants on leases. 

Loopnet does have deals however, plenty of 7-8 caps if you are looking all over the U.S. Everyone seems to think you need to find off-market deals but with the right negotiating and patience, you can frequently find real 8 caps all over (even Florida)

Hope that helps!

As far as I know, people are buying and holding everywhere. That's the key to building wealth. 

Flipping is much riskier and you need to have a lot of capital lined up or people with money. 

Surprised you are getting such high FHA rates..5.8% as an owner occupant? Average 30year rate right now is 4.65%. Factor in a bump for FHA and a bump for Multi, should be 5.1-5.25% at best.

Have you shopped around to regular residential mortgage brokers as well as your local bank?

Except for the hassle of when they go out of business or break their lease :-)

Let's discuss privately, I can help guide you as well as provide referrals.