All Forum Posts by: Robert Rixer

Impossible to say without actual numbers to weigh but on the surface level, adding an extension seems low ROI. You're paying for a brand new build (with high build prices) but people will associate the age/condition with the existing old/leaky structure.

I recently heard a well known real estate mogul say his only regret in his career was not holding on to every property he purchased. He sold most to try and buy more and larger properties - instead he should've figured out a way to fund them all. 

When you shift in and out of properties you pay fees for commissions, loan origination, transfer taxes, etc. which will silently eat into your gains. Even if you can find an edge in short term maneuvers, you'll almost certainly be better off in the long run if you can figure out a way to keep these current properties (especially at 3%) and fund the bigger, better property either through partnering, syndication, f&f loan, etc.

You'd most likely have to look for a commercial unit, which would be more likely to have the card reading accessories you're talking about + they can keep up with the constant use, which residential units aren't designed for. You can also rent the units from vendors who will install and service them and will share in profits but at least you don't have to worry about it.

Overall I'm a fan of cc payment - scrapping for quarters is annoying, this is 2024.

You're best bet is to call a local multifamily broker. They'll be able to give you better and more concise insight.

If the title transfers, that's a sale and will cause a tax event. Unless you're talking about taking over title in 2025 under some sort of master lease agreement, she will be hit with capital gains tax regardless of what seller finance terms you come up with.

Seller financing still implies a transaction and therefore a tax event. Best solution is to help her find a 1031 exchange property, Delaware statutory trust or other.

Agreed with most of the above comments. I'll add it likely will make very little difference to the overall appraisal price given it's a 10-unit.

If you've lived there a year or more, it would satisfy the occupancy clause on most standard loans and you're good to do what you're proposing minus all the LLC shenanigans. You can actually move before the year mark if you have a legitimate life event that caused you to move out. It would definitely raise red flags if you did this multiple times.

Making broad assertions here, but unless you're paying in cash, you're unlikely going to find a property in SoCal that will "pay for itself" let alone also have a living space you can use. Pricing over there seems to be more speculative on what it could be worth 15-20 years from now rather than tied to the fundamentals of cashflow.

Also if you start in Inglewood, 2 hours in LA traffic doesn't get you very far haha

I'm not a lender but FHA is typically if you have poor/average credit and want to buy a minimum 3.5% down. You can get a conventional Fannie Mae loan for 5% down with far less scrutiny and fees.