All Forum Posts by: Shiva Bhaskar

You can totally do this. I know of someone who sold a multifamily property with a lot of appreciation / equity thanks to the value add, and they had negotiated with an older landlord who was exiting the business to buy several of his properties through 1031, that needed upgrades and rent increases. They made a killing on that one. 

Hi Ryan,

I see you're in LA - I am a local attorney and investor. To answer your first question, the law says you must acquire a property with the proceeds, so I think it would be tough to justify this. There may be some tricks, but not familiar myself. @Dave Foster is an expert on 1031 matters, and can probably answer this better than me. 

Is it a good idea? In my view not really. Interest rates are very low. If you can find a good deal to put the money into, you can get a return that is meaningfully higher than the interest rates we're paying on mortgages. 

Of course, if you're retiring soon or something like that, then paying off property and just having the extra cash flow can be a good idea. Paid off properties are great, but if you're actively growing the portfolio, this does not seem like the optimal approach.

I have a few CPA's who are good with real estate matters, not sure about Airbnb specifically but I'd bet one of them has ideas. Happy to message you the information for both of them if you want to send a message or colleague request. 

Will send details. 

More of the usual, sad to say. I do think that landlords who are really negligent and create safety issues should be punished, and we do have some of those here. Expect more Ellis Act evictions and condo conversions, which further drives up rents on existing properties.....so it goes. 

Hi Cataina. I'm an attorney and local  investor here in Los Angeles. I do not specialize in this area of law, but am happy to send over the name of an attorney whom I know and greatly trust, to review things and offer advise.  Feel free to message me / add as colleague and will send the information. 

Hi Alex, we have a monthly meetup. We are on Zoom most of the time, but we do in person like one out of every 3 months. I think in September, we will have one at a brewery in the South Bay. Please feel free to send me a colleague request, and can share information. 

We are seeing some smaller landlords selling, and longtime investor families, private equity groups etc stepping in. They tend to have resources to weather these issues. The era of the mom and pop, a landlord you personally know, is starting to end in LA. 

 I will chime in. Pasadena, and the bettter parts of SGV are totally on fire. So are Torrance, Redondo Beach, rest of the south bay. 

Cost segregation can be great for motels and hotels. Many owners do it, lot that you can depreciate. 

I think there are a few reasons. One is that money is cheap right now, so they can use someone else's money, and put their own to work for something else.  Another, and this is not one flippers like to discuss, is that if the project goes south, the risk is on the lender more than them. They might offer personal guarantees, but still. 

Another situation is flippers who are involved in many projects. It's hard to fund 4 or 5 projects at once, all on your own. You might hypothetically do it if you have capital, but it can be tough. So, use other people's money