All Forum Posts by: Adam Widder

@Carl Fischer my wife and I were literally just asking this in text to each other. Here's numbers:

Purchase: 136k, 5% down = $6800 + closing costs and prepaid insurance will be roughly 10k down

ARV: 175-180k, have to see how the neighborhood does in the next year, my realtor firmly believes 180.

Rehab: 15-20k

After selling and paying fees we're looking at 10k profit? 

Feel free to confirm and assist in those numbers!

@Dave Foster So the grey area being, no set time for holding the property, correct?

I will look at sec 121, we're in the process of meeting with a CPA.  I was going to ask the CPA about publication 523, since we're moving for job purposes after a year, we could just sell the property after living in it and qualify for the partial exclusion.  Also we're military so the AD military exclusion may apply as well on the publication 523 but I'm not quite sure.  So hopefully the CPA can clear that up and I will ask about the sec 121.

For your last point, basically I would need to find a 1031 specialist like yourself to assist in the intent and sale of the property?

EMAW is right! 

@Jessica ZolotorofeThanks for the input! so second scenario would then be just to live in, then we move after a year, rent it out for a year, then just straight sell it.  After 2 years then would the tax implications change?

From my understanding and analysis of my own market, some neighborhoods may get a bad rep. That being said, not all blocks in a neighborhood are bad.  Go onto realtor.com or another site and look at the crime trends for your neighborhood, zoom in and see if there are any blocks that don't show any of that crime.  Another good resource is the lexisnexis community crime map website. It will show you where all the certain crimes are committed.  Another resource is to find where shots are fired in that neighborhood, and there should be a county website for that as well.  

What you can also do is play offense on your property.  What I mean by that is a good offense is a good defense.  Make your property hard to rob and the tenants feel safe by adding in physical security deterrence, lights, fence, ADT sign, a caution sign for a dog, cameras, etc.

Hope that helps, good luck!

Hey BP,

Currently we're hoping to be closing on a SF home for us. our plan is to buy this Sept 2018 and put some sweat equity in it. (it looks like walking into the 80s!) Then september 2019 we'll be moving to another state. At that time we'll rent it out for a year. after that year is passed now September 2020, we would list it. Can i then 1031 that property to a MFR in the current state?

My understanding is the 1031 has to be an investment property, and be an investment for 1-2 years minimum. Of course we'd follow the necessary 1031 rules, 45 days to find new properties then 180 days to purchase one of said properties.

Thanks!

@Jadde Rowe I would shop around lenders a bit more. Not every lender offers the same product, has access to the same credit union or bank. @Tim Swierczek is a great person to work with.  Follow his advice for a loan product and an option you're comfortable with.

You said you have a co-signer. Maybe there's an opportunity to get private money from them? Flip a house, Brrrrr method, use the money to put 20%? 

@Debra Chepkemoi sure sounds good

@Michael Breedlove you’re definitely not too ambitious! My advice from listening to the podcast and reading and analyzing like you is that you can do that all day, but the money is what will make it happen. Go talk to a commercial lender and start forming that rapport and build a relationship.  They will most likely be able to help you find the money you need on what you already have or present all the options to you.

@Taylor Colligan Yes it can be on an investment property.  And yes it has to be your primary residence. 

So how do people use 2 VA loans? They move, they satisfy the requirement the lender requires them to live in the residence for. Not all VA loans are alike. People think they are regardless of which lending institution offers it but each lender will have their own stipulations.

Example from my life: my lender said I could buy it and live in it for 3 months then move. Moving is a part of life and that's what makes the VA loan great for veterans, we move. So I buy property with VA, move in, live in for specified time, move, (most likely to a new city, not close my understanding, you can't just move within the city) then use the remainder of the VA loan for the 2nd property.

So real world, we're buying a property here, then moving across the country in aprox 1 year, we'll use the VA loan again to buy another home. If you're staying in the city and want to use the VA loan again you need to refi the VA loan or sell the property. You can refi to another loan if you put sweat equity into it. Example, I buy a perfectly live-able home at a discount because you walk in and holy crap it's the 80's! I renovate using my cash on the home and a year later, its worth more due to the upgrades and me bringing it to market value, now I refi into another loan product.

Hope that helped, but VA loans go from one point to the next easily. and they can be confusing. Talk to a lender in your area to see what they can do

Buying from a wholesaler should not be an issue.  First step to do is search on here in your area and find a local lender, then a local RE agent who specializes with investors.  Many RE agents will tell you they know investors and have worked with in the past. you want someone who works with them on a day to day basis.  They'll be able to guide you and help understand the market from an investor point of view and not get caught up in the retail aspect that most home buyers are into.