All Forum Posts by: Lane Kawaoka

you have a lot of random people coming in and staying at the house and it can upset neighbors as its not really that safe to them.

Also you start to have a lot of remote buyers buying up and bringing up prices where the locals cannot afford. Plus you lose that neighborhood feeling that a lot of people want when its a vagrant house here and there.

We just sold out on our two apartments in Gulfport. The market did not go up as much as we had hoped. It was a fraction of the other markets we are in Houston, Phoenix, Dallas, Huntsville.

If you buy the right deal sure... but its always nice to invest in the places where the tradewinds are at your back. Also if you do anything in FL or gulf make sure you get real insurance quotes (north of Birmingham you should be ok) as we got killed with increases these past few years.

It will go as long as unemployment is not doing well (which its good now).

Welcome

RSVP here

Other events here

*Accredited investors only

Birmingham, Atlanta, Indianapolis, Gary (IN), St Louis, Huntsville, Phoenix/Tempe/Mesa, Kansas City, Memphis, Little Rock, Indianapolis, Harrisburg (PA), Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

We focus on the mainland for cashflow so we can hold on to the asset incase of a recession. Live where you want and invest where the numbers make sense 🤙

In 2018 I sold 7 sfhs and had 200k of capital gains. I just offset it with 200k of passive losses that I built up by going into syndications.

The 1031 exchange is a method of pushing forward the taxes due on the capital gains of a property. You have 45 days to identify replacement property that 180 to close on said property(s).

Its a way of kicking the can down the road with taxes. I would use a 1031 in the last case resort since you have to pay taxes at some point unless you are going to take it to the grave with you and get the step up basis (so there is an exception if you are pretty sure you are on your last 5-10 years of life) which is not very practical due to the following.

1) The 45 days is almost impossible to execute. To be able to line up a deal that is “hot”. Experienced investors spend an average of 18 months to find that elusive first apartment. Now if you are buying lukewarm deals… then be my guest. But in this seller's market, I think its a way to lose everything. Again when you sell the asset in 5-10 years anyway you will be in the same but worse predicament. Take advantage of bonus depreciation now.

2) Most investors that I work with are high net worth and able to cashflow income minus expenses over $30k a year and have over 50K of liquidity on hand. I believe that most people, unless they are talented at being an elite investor, should just be an LP role in a syndication due to the scalability and being able to spread their capital across different leads, business plans, asset classes, and geographical locations. That said a 1031 exchange will not allow you from going from real property to an LLC (ownership in a syndication). Although you could do what is called a Tenant-In-Common (TIC) arrangement where an investor has 1031 exchange funds and wants to parlay that money into a syndication. It's possible but from the syndicator's perspective a lot of unneeded work when you can just raise the funds the traditional way.

The order in which suspended losses are deducted is:

1. To first offset depreciation recapture and gain from the activity that was sold.
2. If the suspended losses are in excess of the total gain, the remaining suspended losses will then offset ordinary income.
3. If the suspended losses do not offset 100% of the gain from the activity that was sold, you may use suspended losses from other rental activities to offset the remainder of the gain from sale.

This is detailed in IRC Sec. 469(g)(1)(A). And if you want to have a wild Sunday night, here's an article that explains it in-depth:

https://www.thetaxadviser.com/...

TK is a great way to get started but just know you are paying retail price plus. Also note that for accredited investors its just not scalable. At a few hundred dollars of cashflow per property you are going to need 30 of these things to get a comfortable life.

Note - I started with 11 turnkey remote rentals in 2009-2015 while working my engineering W2 job. Then went into syndications once my net worth went over 500k.

I started with turnkey remote rentals in 2009-2015 while working my engineering W2 job. Then went into syndications once my net worth went over 500k.

If you make over 150-250k and your net worth is over 500k then I would look to going passive soon. Its a total mistake to think you are going to get 10 fannie loans in each spouses name... I thought that was my dream at one time.

Investing will get your net worth over 3-4m pretty quickly and that that point its about being passive and getting a life than being a busy bee.