All Forum Posts by: Mickey Petersen
Mickey Petersen has started 20 posts and replied 52 times.
Post: Long Distance Minnesota 4plex.
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $640,000
Cash invested: $192,000
We purchase this 4 unit Minnesota rental in April 2025. This is the second replacement property to complete a 1031 exchange.
What made you interested in investing in this type of deal?
This property is less that an hour drive outside Minneapolis, MN
Post: Another Southern California Buy and Hold
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $1,625,000
Cash invested: $698,750
Purchased this property as part of a 1031 exchange. We sold 2.2 million worth of propterty. this is 2/3 of the replacement value. This is a buy and hold. No major work needed to start. We have already had 3 units move out which has aloud us to raise rents on this units. Because this is a commercial loan we were required to put 43% down which makes it cash flow roughly $1000 a month. There is also a space large enough for an additional ADU if and when we decide to do that.
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Quote from @Dave Foster:
@Mickey Petersen Like what @Alex Olson said, a 1031 exchange is a great way to diversify and further grow your RE portfolio. You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.
I doubt if you'll have any issue with your hold period since it is all about your intent anyway. But make sure you make a file labeled "why I intended to hold this and what changed". Just in case.
Ultimately whatever correlates with your future plans but a solid way to build long term wealth.
The main reason I decided to sell rather than hold was the rising interest rates. I initially got a variable loan. It was only locked at the low rate for 6 months. Then it adjusts every 6 months after that. It just up a bunch of course and killed my cash flow. I want able to refinance into a reasonable rate after that. So I decided to sell and move on.
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Quote from @Erik Estrada:
Quote from @Mickey Petersen:
Quote from @Erik Estrada:
Nice!
Who did you use for financing?
I think this was good old Mr Cooper lol
That's cool! Did they also finance the renovations?
No I paid for the renovation with my own funds.
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Quote from @Josh C.:
You can’t 1031 a flip. Talk to accountants before trying this. Intent (which can be read as timing) really matters. Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.
Good luck!
We held it for longer than a year while we were renovating. The intent was to hold but circumstances changed. This satisfies the rules for 1031 exchange.
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Quote from @Erik Estrada:
Nice!
Who did you use for financing?
I think this was good old Mr Cooper lol
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Quote from @Alex Olson:
@Mickey Petersen I would 1031 exchange into a larger better cash flowing property or whatever gives you a leg up on your wealth building. Fastest way to scale.
Thanks Alex. That's exactly what I did. I traded up for a 7 unit apartment building.
Post: Wisconsin No Money Down
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $150,000
Cash invested: $1,500
A month ago my banker (who's is also also an agent) from my home town where I have other properties called me and asked if I wanted to buy this house. The previous buyer fell out of escrow and he was hoping I could do a quick purchase to get it off his books. I told him I was in escrow on other properties and I didn't want to start this and mess up the underwriting for the other properties. His solution was to wrap this loan straight into a loan I already had with him.
What made you interested in investing in this type of deal?
It was my uncles house. He is getting old and he needed to move.
Post: Socal Rat Infested Rehab
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Banning.
Purchase price: $575,000
Cash invested: $75,000
Sale price: $775,000
This was a tough one. Im sure there are worse properties out there to start with. But this was a project. Rat infestations. Huge junk removal needed. Things like that. But we moved out the low rent tenants and after the rehab we filled all units with market rent tenants.
Post: Socal Multifamily Flip
- Investor
- Long Beach, CA
- Posts 57
- Votes 33
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Whittier.
Purchase price: $840,000
Cash invested: $75,000
Sale price: $1,200,000
Full renovation of all 4 units. All original tenants were long term low rent tenants. The first hurdle was convincing them to leave via cash for keys. It went pretty smoothly luckily. Each unit was Redone inside. Some more than others. two units had wood floors that we kept. But one unit was a full redo. Even new windows. We haven't decided if we want to keep this or sell it. It would be a good 1031 exchange since we forced a good amount of appreciation.
