All Forum Posts by: AJ S.

@Paul Yousef You need a new CPA, and new associates to network with, there is alot of opportunity in your area, Detroit.  With that income you can legally with right strategy pay close to 0 taxes. 

It seems San Diego, Orange county, southern CA area and parts of the western US is experiencing a number of commercial tenants collapse or near bankruptcy such Fresh and Easy, Sport Authority, Sport Chalet, Toys-R-US and more it's getting ugly for some commercial investors.  As Joel mentioned the structure of lease, legal entity and a good attorney, CPA will make the difference.   Amazon and other online retailers and convenience of buying online is increasing this trend.

I would suggest to take a HELOC on your primary residence in first or 2nd lien position, it's much easier than getting a loan on investment property.

Most will not do a HELOC on investment property unless it's 100% or near free and clear. Try to use equity on primary residence in 1st or 2nd lien position, the rates will also be lower.

Sell it using 1031 Exchange, contact Bill Exeter or Exeter 1031 to assist you. You don't have suffer by keeping a property that barely cash flows or even worst, negative cash flow.

I would suggest to stay in your own state UT since properties are affordable compared to CA, NY, or TX, but there are cheaper areas, more headaches.  I have heard south west UT (Saint George)  is becoming popular area for retirees or anywhere near student population.

The HELOC is definitely the best option, check if your currently lender can give you a second lien position or possibility first lien. They usually will give .25% discount if you have existing checking account. I would not use hard money lender as long term solution, they are in it to make money, unless you could re-finance into loan or cash out refi.

I second Jordan says, $200 is barely enough cash flow to cover anything, disaster strikes, appliance failure and your now in negative cash flow territory.  Sell while you can, and buy where there is demand and acquisition costs. 

San Diego market is ridiculous, it is way over priced and near top of market, I would not suggest any investor buy there.

There are many bank's that will do HELOC, check with local bank, credit union or where you do business first. Thought most will only do on primary residence.