All Forum Posts by: Samuel DeMass

Hey BP!

Lend me your wisdom!  Please.

I've got a SFH I bought in OCT 16, rehabbed and I just got under contract in JUN 17. I intended to keep it as a rental, but we put too much into it for it to make sense and preferred to pull the capital out and put it into something else.

The numbers (rounded for easy math):

The purchase was ~54K.

I've put ~40K in.

Under contract now for 136K.

After closing costs + commissions I'm calculating ~18K profit (Not ideal, but it will set free the capital)

I have a partner who I've agreed to split the profit with, but I'll be paying him ~9K as the project manager, which will be taxed on his W2.

I'm tracking the only profit that will be taxed on Capital Gains will be my 9K.

Before we signed the contract, I informed my Realtor that I may want to do a 1031X and we put verbiage in the contract to inform the seller that it may be used in a 1031X, but that's the end of my 1031X knowledge.  I didn't think I'd ever sell property, as a soft rule.

Questions:

1.)  Is it worth trying to go through with a 1031X?  What are some of the drawbacks in this scenario?

2.)  What's the next step to accomplishing the 1031X?

Thank you for your time!

Cheers,

-Sam

I'm not a fan of early pay-down. I'd prefer to leverage that capital and make more, you don't have to leverage to the max, but you can stretch your dollars further. However, to your point and question; if you pay down early, you lose options and gain nothing. If you're a Ramsey follower, you can just wait till you have enough saved to pay off the whole loan. Same payoff timeframe, without losing liquidity. Best of luck! Cheers, -Sam

Have you settled on any of the ideas?

I"m in a similar situation, but mine is the frontage of the property.  The 4-plex is off-set to the back of the property and separated.

I'm considering putting a sign for business advertisements, but I don't know where to start.

Best of Luck!

Cheers,

-Sam

Thanks for the replies!! The property is a 4-plex and the sign is for additional income. I basically have a big empty lot that abuts a well travelled road. Also, it's actually located in NW Arkansas. Sorry for the lack of details and thanks for the detailed responses! Cheers, -Sam

Hey BP! Question. I'm looking to find a way to maximize a piece of property that I own with direct access to a well traveled road. Where do I start??? Has anyone done it? Was it worth it? Thank you for your inputs!! Cheers, -Sam

Hello BP, and thanks for the help in advance! I've got a low income efficiency simple 4-plex that I bought that is performing great. However, it came with a pretty good sized lot (approximately 100' X 150') However the lot grows grass, and grass has to be mowed (city ordinance). It's worth mentioning that I don't think the extra lot adds any value to the tenants as it is separated by a small chain link. I've had a couple ideas but thought I should cast my net into deeper waters (bigger pockets fish analogy...nbd.) What would you do with a lot that has frontage to a medium/high traffic road and no improvements other than the fence on 2 sides?! Your input is appreciated!! Cheers, Sam

The pink bathroom was likely in vogue some decades ago when it was installed/built.  I don't think it was meant to be retro, but you never know!

I'll try to keep an update going as we progress  

I'm thinking remove everything but the tub and invest in a nice floor length shower curtain  

@Kathy Henley,

That's fantastic!  Hope it does great on the market for you. 

I'm still a little torn on what I'm going to do with the pink, but in the end I'll probably just get rid of it. The market isn't big, so there's not a lot of pink niche space. 

@Ryanne Hodson,

Thanks for looking it up on Ebay for me!  That's wild.  Yes, those are gold and pink walls.  Some crazy wallpaper job.  It's actually in pretty good shape, just wild choices in style.

Thank you all for the outpouring of info!

I like the idea of re-glazing.  That's solid.  I'll see if there are any contractors in this market that are capable of it.

I've attached some pics for fun!

Note: This is not an ABQ market, it's in rural Arkansas where I have some other investment property.

Thank you for your time.

Cheers,

-Sam