All Forum Posts by: Account Closed

@Evan Anderson if you haven’t considered it, I would advise you to go off market. A decent realtor will have connections with local wholesalers. The general public is not competing on these deals and the pool is much smaller. I get about 20-30 deals a day emailed to me from my network of wholesalers.

@Logan Reeve @Kyle Johnson

There was an article in the Phoenix Business Journal this morning projecting 7% average appreciation in Phoenix for 2021. I am

of the opinion that $200/month in Ohio will never touch $28k in appreciation on a $400,000 home in Phoenix. I have been the beneficiary of the 11.7% appreciation experienced here in the last year on a portfolio of rentals over $1M so maybe I’m biased? 🤷🏼‍♂️

If you’re looking for cash flow you need to hook up with my wholesalers. I get 30 deals emailed to me every day that are off market with varying viability and returns. They are out there, but with the appreciation as a bonus my money is staying here in the valley for the time being. If you want to chat about all the insane growth we are seeing from employers and migration, you know how to find me.

@Jorge Vazquez if you're looking for a realtor to do your NOI, cap rate, and IRR calcs then I'd argue that you're the fool in the relationship.

The realtor is there to guide the transaction. Do you as the investor understand all the caveats of the lending institutions, the outs you have in your purchase contract, the inspection, diligence, appraisal and negotiation tools? If so, get a license. If not, pay the realtor to do their job. And while you’re at it, do yours as the purported “investor.”

Or as my poppy used to say...Stay in your lane.

@Sable Stevens I’m a local investor/realtor in Phoenix/Scottsdale myself. First, multifamily in Scottsdale is hard to come by outside of the Old Town area. Frankly, if I were in your shoes I’d be targeting a single 4 plex in the Arcadia/Old Town area or 2 4 plexs in the Downtown Phoenix area.

My personal preference is to buy in growth areas with strong demand. Based on everything I’ve seen through my own research lately I’d go for two 4 plexs. The idea being to both diversify and to measure the success of both markets for yourselves.

If you buy an 8 plex and later figure out you don’t like the area/demand/demographics it’s much harder to sort that out.

Just my 2 cents. Good luck!

@Shaun Brown good luck brother. Let me know if you want to swap tips with another local agent/investor.

First off, I have to say that I have seriously loved bigger pockets. It has completely transformed my outlook and my life! I cannot say enough about the amazing advice and basically free education I’ve received. 4 years ago I had $10,00 and no idea how to spend it.

Today I've got about $300k in equity spread across 3 properties which are at 70%, 80%, and 85% LTV. Total assets are at about $1.1M. I bought each, lived in it for a year or so, found a renter and bought another. I haven't flipped or rehabbed anything. I've been fortunate to have hit the Phoenix market just at the right time it seems. Ive also bought in great areas and all 3 are Class A with zero issues finding quality renters to date.

My issue right now is that I don't have a ton in reserves (less than $30k) and I don't know how to scale it. I could peel off some equity on house #1 with a HELOC but I don't want to refinance because all 3 are at owner occupied rates which I bought down I could never beat.

If I rely only on savings it will be a while before I can pick up #4 with a decent down payment. I could potentially buy another primary and do my first FHA loan with 3.5% but I think that's putting me over the top in terms of my leverage comfort level.

I’m sure there’s got to be a financing trick I am missing. Please help! The PHX market is on fire and I want to acquire assets as soon as humanly possible.

@Nathan H. If it were me and I had a qualifying issue, I’d simply use the windfall of cash to put more money down on the place I was having trouble qualifying for. Unless your new loan has a drastically higher interest rate than your old loans...it simply doesn’t make sense to me to throw liquidity at something for the sake of proving cash flow.

Obviously all this can be avoided by buying the right deals 😎

@Bill Exeter @Scott Wolf

Thank you both for confirming. I appreciate the guidance!

@Scott Benton why on earth would you give the bank money early just to increase your cash flow?? It’s a phantom increase, you’re the one footing the bill with that upfront lump sum. This is so counter to properly leveraging I can’t even begin to explain. No offense...but you’re paying down a 3% mortgage with money that could earn 7-10% elsewhere for the sake of phantom cash flow. 🤷🏼‍♂️

I’ve searched the forums but can’t find an answer. I’m hoping a season investor or CPA can chime in.

I currently hold title in my own name and have a mortgage in my own name. I'd like to sell my property in a 1031 exchange and hold title on the next property in the name of my newly formed LLC. Can I do this by completing a quit claim to the LLC before sell the initial property? Are there any adverse tax consequences to doing so since I've taken depreciation for 3 years already? Or is the tax deferred as it would be in a traditional 1031?

Additionally, would you recommend a quit claim before or after the 1031 exchange is complete and why?