All Forum Posts by: Steve Dudeck

I'm looking at a deal the includes 2 multi family houses. Each is a 2-Family. Each property has 3bd, 1.5 baths, on each floor. For a total of 12 beds. The NOI is 60,000, and Cap Rate is 5%. The list price is $1,275,000. We will have a down payment of 320,000. And want to finance ~955,000.

The problem is, there are not any comparable sales that come close to these property's valuation when a bank looks at this for lending. This is a college , and rents are there. But the market price of other multies, just 4 blocks away, are about 1/2 of this property.

Will the bank rely on comps, or will the bank rely on past rents to determine loan amount?

Excellent. Thank you Andy

Swanny! Will do. Thanks for the inspiration. I'll check it the podcast 238. I appreciate your reaching out.

Steve

Thanks @Dave Foster. That makes a lot of sense. I appreciate your response.

Thanks Bill. That makes sense, and it's what I would think would happen. 

thank you. That is a great question. If there is any Boot, how is that taxed? If there's 5k leftover in the Boot, is that taxed at Capital Gains rate? Or can I take depreciation into account at that point?

greatly appreciate both of your responses.

I have a question on what I can do out of a 1031 Exchange. I'll use round numbers to look for an answer from you guys.

I have an investment property that I purchased for 100K with 20% down. I am setting up a 1031 Exchange, for the sale of the property at 200K. The new property that we are purchasing is 300K. 

Is my Capital Gains 100K?
Do I have to put down the full 200K from the 1031 Exchange into the new property?
Can I only put down 180K? and keep 20k? What is that 20k subjected to if I can do that?

Thanks for the help! 

Steve

Thanks. Much appreciated. 

Makes sense!

We have 3 rental properties. Property 1 & 2 we own outright. The 3rd was recently purchased using a Line of Credit from our first 2 properties.

We want to refinance the 3rd property to more favorable terms. We are not sure what to do. Should we...

1. Refinance the 3rd property so that we get our Line of Credit back. (Then have the Line to use for future purchase)

or

2. Refinance all 3 properties and pull out a chunk of money to have in case we want to purchase a 4th. 

Not sure which way would be better. We are trying to figure out the + and -s