All Forum Posts by: Rebecca Graziano

I sold one property in March unrelated to covid-19. It was underperforming and was better as owner occupied.

No way I’d sell my other assets, though. I’m not over leveraged and they are cash flowing. 

I don’t see my markets dropping off. I’m looking at data from different resources, and feedback from my pm is suggesting healthy demand. 

This is a completely unprecedented time and I don’t want to guess what the future holds. If I see a deal that meets our standards, I’ll move on it as appropriate. 

It’s impossible to know the future, even with machine learning technology. The best thing anyone can do is adapt and overcome. 

I agree with the others in lowering rent on individual basis. A good tenant is worth their weight in gold; cutting them some slack while covering costs is a win-win during this challenging time.

@Kevin Lefeuvre I think being an airbnb host right now would hurt $ a lot.

But buy and hold is tried and true; my properties are cash flowing just great and one of my notes is about to get paid off at 16% Interest :)

@Spencer Cornelia

They paid off the property several years ago, but have taken out two HELOC since.
The owner said he would buy a mobile home in the middle of nowhere because it’s cheap. The house looks completely unkempt inside and out. They have 3 dogs and an exotic bird, and he complains about the vet costs. He also has several vehicles and a boat.

Honestly, I think they are using the money to support daily expenses. He’s absolutely concerned about cash flow- that’s why he hasn’t retired yet. I’m trying to brain storm ideas beyond sub2.

Hello folks!

I got a lead on potential sub2 situation that is an older couple with a house worth about $325k ARV. They have $100k HELOC and have shared with me they are concerned about retirement, just want to move to middle of nowhere, worry about house payments, etc. The house is in original condition from mid 70s.

We are thinking about how to structure potential deal? Sub2 stuck out but they might get spooked since they are traditional, private people - "don't tread on me" navy veteran.

My husband, being a veteran, thinks sub2 is wrong approach and would prefer using financing. We've considered using our additional VA entitlement to acquire the property at their payoff amount. We've also considered private money(from family) to pay off the loan and transfer title and then refi later.

We want to offer them something in return to make it worth their while, since they aren’t in distress yet, but aren’t in good position either. Their only option to retire is to sell the house but they haven’t repaired anything, so they won’t get much money to live on for another 20+ years.

Strategically, there’s a lot of options here. We could move into the house and do a live in flip while keeping our housing cost very low, and rent our current property. We could acquire the house and wholesale it, or we could flip it, or buy and hold.

Any suggestions appreciated:)

Hi,

I'm about to close as the seller on a house that needed about $13k in repairs. It's selling to FHA buyer for $85k.

My agent fronted the funds, but isn’t sure if it should be listed on the final docs at closing? Will this cause any red flags as a closing cost?

We agreed to some repairs to the seller, but did significant additional work prior to listing it- it was a former rental in pretty bad shape.

thanks all!

@Cameron Lam definitely talk to your accountant and begin strategy planning so you don’t owe more come tax time.

We use a S corp structure, but there is a tax limit once you hit $150 AGI you cannot write off any passive losses against W2 income.

We ended up owing over $6000 last year(no exemptions) and we don’t have kids either, just like you two. Apparently, if you owe “too much” the IRS charges penalties and interest as well. It’s stupid. Honestly if one of us quit our job we’d be better off financially - it doesn’t make any sense lol

We are both maxing out 401k and have HSA and FSA accounts, anything we can do to lower AGI.

Anyway, congratulations on your achievements. Good luck with Uncle Sam!

Just curious- does your spouse have W2 income? From where I’m standing, it’s hard for my hubby and I to keep our AGI low enough to take full benefits of owning passive RE. We ended up paying a lot more in taxes last year. 

How are you handling that?

It sounds like you have a user-related issue, and the old cast iron is different concern. New pipes won't fix people flushing random stuff down the drain.

That being said, don't use trenchless for sewer drains. Go with plastic/ABS. A good master plumber can re-route the lines and do all the work from outside/underneath the property. They last MANY years and have multiple clean outs installed to deal with clogs in the future. We just had our sewer lines replaced/re-rerouted in our home, it took about a full week. Every plumber I consulted did NOT recommend trenchless for sewer lines, only freshwater. Food for thought. Good luck!