All Forum Posts by: Nathan Grabau

This is going to come down to the terms of your lease. If she left before she was actually served eviction papers, it is likely that is considered her breaking the lease. 

What are you trying to accomplish here? If she is doing physical damage to the property, you should be able to keep the security deposit. Are you trying to pursue her for that months rent? If so you it is pretty unlikely that you will be able to recover it. 

A 1031 only delays a future tax bill, it does not eliminate it. The only way to avoid the capital gains taxes on this and your previous property is to hold it until you die. 

That being said, you can do a cash out refi on a building you bought with a 1031, if you need to free up capital! 

I would be very weary about being in a partnership like this with someone you do not trust. You could try and get another bid for it and see if your partner is close to the other bid. I would do this with their knowledge though and just saw you want to do it as a cross reference. 

Heloc's on investment properties are getting increasingly tricky as secondary markets dry up. What LTV are you trying to get to? Even if you have one that will lend to you, the terms are normally not great, and often refi'ing the main loan on investment makes sense.

I am an agent here though, so take it through that filter. That being said I am putting my money where my mouth is as a BRRRMTR in CO was our most recent acquisition! 

I am very bullish about Denver Metro here. Really great long term real estate appreciation fundamentals and a majority of municipalities have full or de facto bans means that you are not having to compete with STR's as much for month long stays!

One of the things I have recently added to my criteria for MTRs is the likelihood of environmental disasters. While we do not want these to happen, being in an area where issues, like fire, floods, ice storms, hurricanes, happen, but being outside of the primary danger zone, creates impulses of opportunities to crank CoC returns and longer term rehab tenants.

The 12-15% rule is what I use for my phase 1 STR underwriting. I do not need to get to 15% if I like the market, know there isn't an HOA, expect appreciation etc. That being said this is one of the tools I use to be able filter deals quickly in determining whether they move to my phase 2 underwriting or not!

This depends on your goals and what you are trying to achieve. If you can start with MF and your desire is to have a massive portfolio, MF scaling tends to be easier than SF scaling. 

I generally think we are going to see better MF deals in the next 12 months than SF deals, because of how MF is valued, cap rates are at risk of coming down more than SF home values. 

What are you trying to get out of the software? When I have house hacked I have been able to without needing a software. I would just interact with my tenants directly! Building systems is a great idea though if you plan to grow and self manage your portfolio! 

You have 3 primary things you can distribute: equity, cash-flows, and profits(for tax purposes ie depreciation). I would figure out who wants each of these the most, as each of you could need one more. For example, you could benefit more from tax losses depending on your tax bracket than your partners can, making them more valuable to you. 

With regards to capital providers vs people who are doing the work, I have seen syndications where the syndicators(active partners doing the work) get 15-35% of the deal and the capital partners get the rest. Hope this helps!