All Forum Posts by: Michael Plante

Newby here. I find myself in an envious position, and was hoping to get some seasoned feedback on what to do. I have a house that I bought for my parents years ago in NC (3bed/2bath). The mortgage was for 100K, with 10K as down payment. That was the extent of my investment. My thoughts at the time was to eventually turn it into a rental unit someday. Family has made all all the mortgage payments in the meantime, and incremental improvements to the property over time (added back deck with ramp, double paned windows to all bedrooms and living room). Water heater new, HVAC recently updated.

Fast forward ten years, and I am now living in TX and with plans to have my mom move in with us here. So a couple of options to consider with the NC house, now that I've had agents view the place:

1. Sell, for around 165K-180K (after replacing carpet/paint, landscaping). If so we would go directly into a 1031 exchange for a local rental property purchase in TX.

2. Convert home to official rental property using local management company (after replacing carpet/paint, landscaping). We would then go for cash out refi for roughly 55K once tenant is lined up. We would then use these funds for next deposit for rental property in TX.

Am I missing anything obvious here? Am leaning towards the cash out refi in order to avoid the tax event but I'm sure there is something else we're not seeing here.  Thanks in advance!

Send him a certified letter with the exact part of California code that sites security deposits must be returned with in 21 days. Then state and show the correspondence on the 26th day, missing said deadline.  Id include that the penalty for improper handling of the security deposit is 2x the deposit. You are perfectly willing to overlook the fact that they missed the deadline by a week and receive your full deposit back, but if not you are more than willing to present the facts to the housing court where the penalty will in all likelihood be 2x the deposit. 

 Very important to understand the market trends in your area, good job! Yes I am buying in 2021. I bought last year, I bought two new houses this year and am actively making offers trying to tie up four more deals this year. 

You might be surprised that I buy retail, off the MLS. I buy quality real estate in good locations. Although I have a strategy to wedge the deal and get it at a discount, I often pay full asking because I recognize an opportunity. I'm not going to walk from a deal over 5-30K that they won't give me a discount for, when that property makes me 125K a year in some years, but typically 75K a year. Like I said to the other guy, if you're sitting watching the insane prices that went from 75 to 150K, sitting on the sidelines waiting for a crash, you'll be kicking yourself when those properties are 500K and you lost out. Real estate is almost always a good thing to buy, the reason being that I view it as a thirty year play. Appreciation, tax benefits, cash flow, fixed costs, someone else pays it off for me and it's an inflation hedge. Even if it goes down for a bit, the long term play is important. Hence why buying is almost always a good thing...but that said I keep just around 1.5 mil in cash at all times to buy on dips if opportunities present themselves. But do I stop buying because the properties I bought for 145 or 300 are now 450 and 700K? Nope. I just cash out and keep buying. This year I will make almost 1 million between W2 income and investments.

Make sure all rents are actually being paid-use Estoppel Certs. Walk every unit with an inspector. Examine all the paperwork. Be thorough. Believe no one. Learn how to screen and your local LL tenant laws. I know nothing about STL. All the best!

You can probably pay $1000 for the appraisal, but it will take you 3 or 4 weeks, maybe 3 months to get it. I just sold a property that we had to push the closing date back twice. I kept asking why??

No appraisers. I have been told that it is kind of a bid system that they are using now. They put out that there is an appraisal for $400. Who wants it? Lets get the details and see if we want to do it. If no one wants to do it, it just kinda sits there. They offer more, $500. No one wants to do it, $1000. And on it goes. Obviously no one wants to drive from Austin or San Antonio. 

3 mil purchase to make 3.6 over time is a money loser all day long.  U need to buy this for 1.5 to max 2 to make any money if your going to bring on debt.

Hello, I am looking to purchase my first investment property. I'm agnostic of location. I'm looking for a buy and hold property with balance of cash flow and appreciation potential. I'd prefer a newer home that I will pay to have managed. I have a budget of ~$300k.

It seems like an impossible task to find the right city and home. Is there a service that can do the due diligence and recommend potential properties?

@Michael Plante

Brave waiving inspection on a sight unseen.

You might also visit online auction sites, such as Auction.com or Hubzu, search your area, and set up saved searches. Will definitely help as you develop those relationships with wholesalers , agents or other investors.