All Forum Posts by: Craig Jones

Hi Dwayne,

I agree with Adam that there is no "right" answer and there are just so many ways to go about the Hunt.  That being said, I would say my best deals come from "time on the street".  I like to go into neighborhoods where I want to buy property and start walking the streets with an attitude of awareness.  This means you are talking to anyone in the area you think would be willing to share information.  Be mindful of homes that look like they need significant repair and contact the owners.  Be mindful of homes that appear to be occupied by tenants that are not taking care of the home and take a picture to send the owners with a letter expressing interest in purchasing the home.  Be mindful of vacant homes that you can follow up on.  

Ideally you would go into these areas with a list of owner occupied homes and then you could leave a note on the door of any owner occupied home that looks like one you would like to purchase.  You will get a great response rate from a personal note left at a property.  

Happy Hunting,

Craig

Good Morning Cuong,

A 1031 Exchange isn't a form to fill out, but rather a process to follow at the time you decide to sell a property.  I'm sure there are some good articles on this site somewhere that will detail the process.  You will work with your real estate agent, your accountant and a 1031 accommodator when the time comes.  It is pretty painless, but there are some strict time lines to follow.

There are definitely tons of books and information out there to help you learn about real estate investing.  I think Bigger Pockets is one of the best resources.  Tons of excellent free information and lots of knowledgeable people willing to help.  If you listen the weekly pod casts you will get a steady stream of recommended reading along with an hour or so of great content.

We used to live in Portland, but moved to Bend (Central Oregon) a few years ago.  More sunshine and less rain here.  

Have a great day! - Craig

Hello Cuong,

To come back around to your re-fi question.  I wouldn't spend $5,000 to save $100 a month.  As you said, this will take you 50 months to make up the expense, but what I don't think are taking into account is that you would be resetting your amortization schedule.  You would have a full 30 years of payments in front of you which means you will likely be paying more in the long run and not actually saving any money with the refinance.  I'd look at how many months into your existing payment schedule you have already achieved and remember to calculate those extra payment on the back side.

With regard to selling I'd say you have to decide if you are comfortable investing in real estate.  If you think it is a good fit for you then I'd say hold on to that property.  $800 a month in positive cash flow is great and it should only get better with time.  The 1031 exchange is a great tool if you want to sell and defer the gains in the future.  

If you decide you are not comfortable with real estate investing and holding rental property then you have a golden opportunity in the tax exclusion by selling soon.  

Before selling I would look at where you can re-invest those dollars and do any better than you are right now.  Right now, based on the equity numbers I saw earlier in the post you are earning over a 7% return on your EQUITY.  (130k equity and $9,600 per year)  This doesn't take into account any appreciation that you may get out of the market, any of the debt pay down that you are getting the benefit of through your renters covering your mortgage, or any of the depreciation benefits you get each year.  When you add these other factors to your rate of return you will start to see the power of real estate investing.  

Best Wishes,

Craig Jones

p.s. If you'd like clarification on any of my comments I'd be happy to talk with you about it.  I can be reached at 541-241-0700