All Forum Posts by: Nick B.

I get monthly reports consisting of the following:

• Executive summary/property manager's narrative
• T-12 P&L statement
• Last month P&L statement with actual and budgeted numbers
• Cash flow statement
• Balance sheet
• Rent roll
• Delinquency report
• General ledger
• Make ready & Maintenance stats
• Actual bank statements

The most important one is team behind the project and their experience. Everything else is secondary

@Diana Dorantes, there is an alternative to 1031 when it comes to sheltering capital gains. If you invest in a syndicated deal that uses cost segregation depreciation method, you have a high chance of writing off up to 80% of your investment in the fist year. Most syndicators use cost segregation these days, so no problem finding them.

Hypothetically, if your profit from sale is $100K and you invest it all in another deal, your write-off may be $80K. Then you only pay taxes on $20K. If you add some other money and invest $125K, your write-off would be $100K - right on the mark to offset the entire gain.

The beauty of this method is that you don't have to invest all that money in a single deal. You may spread over two or three, just make sure that the sale of your property and these new deals closed in the same calendar year.

If you have other investments that accumulated depreciation over the past years, that depreciation can be used to offset your capital gain as well. No need for 1031 there.

DISCLAIMER. I am not a CPA and this is not a tax advice. Please consult your CPA for your particular situation.

Some syndicators allow 1031 investors but most don't. To accommodate 1031 they have to split property ownership between a 1031 owner and their holding company. That creates a "tenants in common" or TIC structure. The whole thing becomes more complex than a usual syndicated deal.

Not enough information. 

- Location

- Demographics (employment, median income)

- Current and projected expenses

- Immediate capex

- Occupancy 

- Potential for rent growth

You got it correctly. 

The only other thing is that if you keep adding every year to this portfolio without waiting for an exit, your passive losses would accumulate much quicker.

Sure, people buy every day. It doesn't mean those are good deals. If someone pays a premium for a value-add instead of getting a deep discount, it's not a good deal. 

I'd go with a newer one. It pulls higher rent while capex should be lower based on age. Depending on location and interior/curb appeal it may also attract higher quality tenants.

@Michael Valenzuela, you did not provide any data besides prices. How much are the rents? What do you budget for initial CapEx? What loan terms are you getting?