All Forum Posts by: Travis Sperr

@Eddie Galindo this is not a good deal - you don't show all of your expenses, but that doesn't really matter. Spend more time on the forums to learn how to properly analyze a deal, use your numbers as practice and compare to other deals you see until you get an idea of what your market will support. 

In the sincerest way I can say it, you are not ready to buy a rental. Spend more time understanding the numbers and business. BP has calculators that would probably be worth your time. Shoot me an email and I will share the spreadsheet I use. 

The short answer is probably not. If you have reasonable vendors that allow you to get things done for a good price and quickly, then it probably doesn't add a lot of headache. If you do your own repairs, than it will probably just be a pain. If you try it and like it, maybe you expand upon retirement, if you have too many problems you stop after a year? 

questions to consider - would you get 10%? - why would someone hire a hobby property management for the same cost as a professional that does it all day, every day? 

Understand all of the profit centers for PM's like leasing fees for example, that would be paid on top of the management fee.

Most importantly, check local laws, some areas require real estate license, minimum years of experience and property management licensing.  

Key Bank was pretty aggressive on HELOC's a couple years ago, in some cases going to 90% of value with a minimum household income.

@Dustin Booth do you plan to invest the money in your local market or willing to go out of state? 

@Stuart Crowell - Although not in the day to day as an agent, I agree with your analysis and would go further to say that my colleagues, their clients and myself included have gone to town homes and condos. It allows a lower basis and all things considered the rents are still strong especially on section 8 type programs. I think that everyone wants to be a multifamily investor even is that is 2-4 unit so they are paying offensive prices. Not to say the deals may not work for them, but I can't wrap my mind around it. When 2-4 units are marketed with cap rates it tells me that it is time to allow buyers who that appeals to step in while I spectate. 

A trip the city will allow you to understand what is possible, based on zoning, lot coverage, etc. A consult with a contractor or three will give you an idea if it is financially feasible and lastly an architect will be able to help you draw it up to pass the city and get a accurate contractor bids. Those are the steps I would follow. 

When doing the exchange you will need the relinquished and replacement property titled the same. I did this a couple years ago - mortgage in personal name, but titled in LLC, the LLC is used for all of the income and depreciation so the replacement property needs to be titled the same. I am not a CPA, Attorney or qualified to respond to this post, but did a reverse exchange exactly how you describe.

Any reasonably qualified 1031 company or CPA should be able to walk you though this.  

Your bigger challenge could be taking title in the LLC for the new purchase, unless working with a local bank who will allow it - like Firstbank.

@Steve Miller I think your chances of achieving this are very very slim - it all starts with a call to the city planning and zoning department. Financing is also a concern when looking at buying a non conforming property. 

@Meera Lakhavani it has everything to do with prepared you are, how quickly you can provide detailed bids and get all docs required. The reason it typically takes so long is because the borrower has no idea what they are doing and the Agent and mortgage broker are just as lost and cannot provide appropriate guidance. 

30 days is possible with The right team and a lot of hustle. 

Zero data to support a bubble in our market.