All Forum Posts by: Sunil Kapoor

Hi All,

I am planning to purchase another rental property and one item I’m looking at is property management fees.   

Most providers offer around 8-10%, but have placement fees (upto 1 months rent), renewal fees (around 50-65% of rent), repair markup fees, etc.  

My worst case estimate is about 15% of monthly rent should be allocated to property management after taking into account all the fees.

What do you all use as your expected costs for PM for prospective rentals?

Regards,

Hi Everyone,

I’m looking to sell a property and going back and forth between doing a 1031 exchange into more properties or putting the funds into an Opportunity Zone Fund. From my opinion, the pros and cons of each are

Opportunity Zone Fund

Pro:

I can pull out cost basis

After 10 years capital gains tax is reduced 15%

Capital gains of the investment are zero after 10 years

Once the property is developed, I should get a regular stream of dividends until cashing out in 10 years

Con:

I may have a 2-3 year wait until the Fund generates income

Funds are pretty much locked in for 10 years

Returns don’t seem to be as good as a rental property

1031 Exchange

Pro:

I can exchange into properties with better cash flow and collect monthly cash flow immediately

I have a tangible property rather than a fund which can be mismanaged

I believe my monthly returns will be higher than an OZ Fund

Con:

Capital gains (depreciation recapture) continues to build

Not as passive as an OZ Fund

I’m wondering if I missed anything? What are your plans for your next property sale, 1031, OZ Fund or just cashing out and paying tax?

Thanks everyone!

Hi Everyone, 

I was wondering if anyone has a good recommendation for a window replacement company in Grand Rapids, MI?  

Thanks and much appreciated!

Regards!!

Hi All,

I’m about to sell 2 properties in SoCal that have high appreciation and I am wavering between several 1031 options.

I'm wavering between just purchasing more properties, a DST or a Opportunity Zone Fund.

For those who have used a DST or Opportunity Zone Fund, can you give me your experience and expectations on ROI?

Thanks!

Ps, big shout out to @Dave Foster for his 1031 support!

Hi Fellow BP-ers,

I’m looking to purchase an investment property for cash flow. I estimate that the market rents on the unit are around 1000-1050/month and the price is around 125K. When digging deeper, I found out that the owner has his Mother renting the unit for around $650/month. He’s like her to stay, but understands that the market rents are much higher.

I’m wondering your thoughts on how to structure a deal to keep her in the unit at a slightly higher rent, but push for a discount on the asking price.

Any ideas of an innovative strategy that could be a win-win?

Regards,

A. Origination Charges $4,832

2.464 % of Loan Amount (Points) $ 3,437 

Document Assembly Fee $220

Lender Fee $430 

Processing Fees $545 

Underwriting Fees $200

B. Services You Cannot Shop For $672

Appraisal Fee $550 

Credit Report $73 

Flood Certification $10 

Verification Fee $39

C. Services You Can Shop For $2,745

Home Warranty Premium (Optiional) $550 

Title - Closing Protection Letter $50 Title - Lender's Title Insurance $1,065 Title - Lenders Endorsements $475 Title - Notary Fee

Title - Settlement Fee $455

D. Taxes and Other Government Fees. $48

E. Prepaids $519

Homeowner's Insurance Premium (12 months) Mortgage Insurance Premium ( months). $420

Prepaid Interest ($19.86 per day for 5 days @5.125 %) Property Taxes ( months) $99

F. Initial Escrow Payment at Closing $188

Homeowner's Insurance Mortgage $70 

Insurance Property Taxes. $118

G. Other.   $1,073

HOA disclosure fee $245

HOA transfer fee $155

Title owner Title insurance (optional) $673

Total: 10,077

Hi All,

I am buying a townhouse in the Phoenix area for around 190K with 30% down.

My closing costs are around 10K, and I have great credit (over 800), which seems high, but I am a newbie so wanted some experienced eyes to help me.  This would be a rental property.

Do these closing costs seem reasonable?

Thanks for your advice!

Hi Sam B, I am an expat in Singapore and looking to add to my real estate portfolio.  We should put together a group of BP members here in Singapore!  PM me if you're free to connect.

Hi Everyone, does anyone have any recommendations for a real estate attorney in Arizona, property managers/realtors/contractors in Tucson and or Phoenix?

Any recommendations would be great!

Thanks!!

Hi There,

I am new to real estate investing, and have 3 properties and want to start building properties quickly, but correctly.  My first 3 properties were purchased in my name and I thought I was smart by purchasing an umbrella policy to cover them all.

After reading as listening to advice on BP I see that I should setup an LLC and have a team (CPA, lawyer, etc) advising me.

I wonder if anyone can share the team of Advisors they use, who they are (CPA, Lawyers, etc) and how they found a good one.  

I have properties in California and am branching out to Arizona, so any referrals  would be highly appreciated!!