All Forum Posts by: Chris Bounds

I've only had one person submit such an agreement and I laughed. First, most folks don't have the resources or ability to enforce it. Second, the wholesaler can always file a Memorandum of Contract. Third, if the deal makes sense we're signing a contract anyway. You'll probably run into that more with large wholesaling mills than smaller, local wholesalers. 

@Garrett F Anderson, another note to consider is the acquisition strategy. Why would you be considering 20% down? On any acquisition, for a flip or rental, we use hard or private funds. For a rental you can then implement the BRRR strategy and refinance out with long-term conventional / commercial financing. If you buy cheap enough you will have little cash in the deal after refinancing.

Two points to note:

If you don't plan (or have the time)  to manage the tenants/property like a professional PM company, then hire a PM. Some of the best deals we get come from bad landlords. 

Consider the tax implications. If you sell it and have lived in it 2 of the past 5 years then there may be exemptions from gains taxes. If you have a lot of equity it may be better to sell it now and use those funds to buy rental properties. Of course, check with a CPA regarding your unique situation. ;-)

Like @Ray Lai mentioned, I also highly recommend a CRM. We tried the Excel approach for maybe a month. It may work in a very lean way with a small list, but a CRM is so much better. Don't just think about serving your current needs. Think about growth. Do you want to spend a few hours building an Excel tracking system that you'll outgrow soon or would you rather spend that time setting up a CRM that will grow with you. Think like a successful business owner, not a mom & pop shop.

Fair is market value. If you're running a business, which rental properties are mini-businesses, you must get rent to market value asap. 

When we inherit a tenant on a M2M lease and are considering keeping them, we require them to fill out an application just like a new tenant. If they still qualify, then we'll have them sign a lease agreement. We do consider incremental rent increases over a short period of time. 

Welcome Claudia! Houston has an amazing REI ecosystem with networking meetings almost every night of the week. Plug in and take action!

@Dave Foster, gotcha. I'm looking to turn one into 3-4 so I'd be spreading cash around.

@Dave Foster, most of my BRRRR properties require very little to zero cash since I get them 100% financed through private lenders. Then once rehab is completed I refi out of the PL loan.

The way I understand it, a 1031 will require me to increase my cash basis of each property. I could do a cash out refi after 6 months at a slightly higher rate, but that seems to negate the benefits, long term at least.

Thanks all. It's a sizable proceed. I'm leaning towards just biting the tax bullet for the flexibility on redeployment. I utilize the BRRRR strategy so a 1031 process may complicate things more than help.

I know the question is subjective. Obviously there is a tax savings (deferred) benefit. For those who've gone through the process on a SFR, did you find it worth the extra steps, time involvement, and (maybe) hassles that come along with the process?

I'm looking to use proceeds from one SFR to invest in 2-4 other SFR.