All Forum Posts by: Stephen Horan

I would analyze the prospective purchase and conpare the numbers. consider appreciation, cashflow, principle into new loan, and consider after tax effects ie writeoffs such as mortgage interest, depreciation, property tax

0 Votes

Tampa, Florida

I have a theory that it's all how you approach the meeting. Everyone has supposed needs, making ANY impact if memorable and highlights your name in their contact list.

1 Vote

Quote from @Josh Rothey:

So I live in a small rural community average rent goes for 1890 for a 3/2 in my zip code per the county data.

Current first house is a 3/2 I purchased in Jan 2021 for 210k currently owe about 180k with current value around 260k. Monthly costs are about 2k/month including fire insurance (high risk area). So that’d likely put me at a $100-200 deficit.

The prospect property I’d like has an attractive price of 270k with 600 more sqft and would be great for the fam to move into. I believe the mortgage will come out to around 3k/month which is fine but in the event I have to cover both 5k for several months would be difficult.

Should I proceed? I called a lender yesterday and they said if I had someone sign a lease with a deposit down I could use that income towards my new loan. Sorry if this is too much info im new to the rental game.

I have rentals in Redding. But they were all Fixer uppers that gained significant equity after fixing and to where they cashflow after only financing so much of the new value. Hope this gives perspective.

0 Votes

Redding, California

Quote from @Michele Fischer:

Personally, I would not keep a rental at an expected deficit, and I would not want a rental without a safety net to be able to cover six months of disasters. With only one rental, you never know what costs or vacancy will come up. With more rentals it becomes less likely that a loss will wipe you out.

I do agree with this view.

0 Votes

Redding, California

Quote from @Grant Smith:

Hello, (California, Shasta County)

Navigating an interesting trade-up 1031 opportunity and thought I would turn to the community for insight.

Selling 400K wholly-owned rental property head for 10+ years. Planning to 1031 into 600K 'investment' (held for investment or rental) property with the intent to hold for 2 or more years.

1. I'm lead to believe I can add a non-spouse owner (TIC) as part of the remaining 200K to be financed (both on mortgage) - fractional ownership. Is this true?

2. If so, can the 2nd TIC owner use the property as a primary residence if I am holding for investment my TIC ownership?

3. If 2 is no, what arrangement might work.

Any insight and resources you might offer would be helpful.

Did this work out for you? what are the numbers that are beneficial?

0 Votes

Redding, California

Quote from @Ally Shroff:

Hello Community,

I have found a really nice property to do my first fix and flip in Cleveland.

Question: Does my licensed GC tell me what needs to be fixed, repaired or gutted? or I have heard of something called the POS Inspection? Apparently the inspection reports is something that the GC follows and does the repair work so the property can get occupancy permits. Is that true?

Am a but confused so I do apologize if my questions are a bit off?

Basically I just want to know the step by step process after I have decided on number worthy property to flip?

Thank you in advance to all those who help

Ally

I would take the GC opinion, weigh it, consider their position, also get other GC opinions. They can vary greatly. But remember it is your ship. Strongly consider TIME in the project.

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Cleveland, Ohio

I should. Since 1 quadrant here is the first year, an IRR would need the following years, wouldn't it?

1 Vote

Sacramento, California

Hello BPockets family. After reviewing some multifamily walkthroughs and deal analysis bigger pockets videos, I appreciated the "Quadrant" analysis, where they look at the Return on investment in all forms and combine to something usually well above 20%. Top left quadrant is proposed appreciation, top right quadrant is Cashflow, Bottom left is Principle paid, and bottom right was labeled and clamed as "taxes". I took that as property tax writeoff, and if so, I chose to add mortgage interest and depreciation into that bottom right quadrant. Knowing my own tax bracket, i then take the percentage of the writeoffs listed in that quadrant, and can then apply it to ROI with all other quadrants. How does this deal analysis method sound to others? Additionally, I prefer to consider rental income scalability based on proposed rental increase, and compare that to the alternative deals I am looking at keeping or acquiring.

If this wasn't clear enough I can try to be more descriptive.

1 Vote

Sacramento, California

Hey Dino, I have the same interest. Im willing to sell a couple places to have good capital and open to looking at the benefit of partnering up.

0 Votes

All Forum Posts by: Stephen Horan

Stephen Horan has started 8 posts and replied 18 times.

Post: Quit your W2 with cash flow - wrong idea

Post: Best approach to investing equity

Post: Is networking overrated?

Post: Should I rent out my current residence?

Post: Should I rent out my current residence?

Post: 1031 exchange + adding TIC on new property + investment usage

Post: looking for advice

Post: Bigger Pockets Multifamily

Post: Bigger Pockets Multifamily

Post: New investor looking into commercial real estate