All Forum Posts by: Michael Encoy

@Michael Encoy,  Yep imagine having $200K in the bank and not getting paid any interest on that money (wait that's the way it usually is:).  Would you accept that?  Sell and if you qualify take the primary residence exemption.  If you don't qualify or if you also want to defer paying the depreciation recapture tax on the roughly $30K of depreciation you've taken, then you can always do a 1031 exchange and defer all.  It's not tax free but at least it's tax deferred indefinitely and going from negative to positive return isn't a bad thing.

@Michael if you're hoping to break even, but have ~$200,000 in equity...I would say sell, and use the equity to invest in a market that will cash flow. If you lived in the property for 2 of the last 5 years you can avoid paying capital gains tax, and if not you could look into a 1031 exchange. I have some buddies in LA I could point you towards if you would like help selling.

David,

Thank you so much for your input.  Unfortunately we I don't think we meet thie 2 of 5 year rule.  We lived there from Oct 2015-Jan 2017.  However, I'm looking to see if I can be excempt since we moved due to being sent to a new duty station per IRS:

If so, a sale might be in my future.  

Hi Mike, I would just be very cautious of negative cash flow in California. We are expecting a recession. In some areas, that can mean several things including lower rents, banks pulling HELOCs, and lower selling prices. I'm sure you could find lenders that will do a loan at this point. I'm shocked at some of the programs I see around town but I don't know anyone doing these non-QM loans with stated income. Most hard money lenders are staying clear of owner-occupant stuff but may do it if you have a business purpose for the money. If so, check out the California Mortgage Association. Do a search in the member directory by location. Chances of finding someone local means easier funding typically. You may have to qualify like you would a regular loan because of local regs. You can always also chat with your local credit union. they are typically far more flexible. You got equity and cash, that's a great start. 

Hi Forest, I'm a hard money lender and because of regulation in California and Florida, we don't do private loans on anything owner-occupied. There are a handful that will but I don't know if they do it regularly. PLEASE make sure to touch base with your local city and county to see if they have any first-time buyer loans. So states, counties and cities can get pretty creative. You may be able to find the money you need to assist with the downpayment. 

Hi,

Any investor invest in Student Housing near University Of Texas campus like UT Austin, UT Dallas, Texas Tech Lubbock etc... I see all campus are growing a lot and there can be recession proof opportunity in these areas.

What kind of investment is ideal in this neighborhood? Single family / Multi Family

I was wondering if anyone could give me insight to the current rental market in Lubbock.  I am in Midland and don't really see myself investing here, I was taking a look at Lubbock but noticed that lately people mention it is a bit flooded with rentals.  Any input on that market is appreciated!