All Forum Posts by: Alex L.

 Wouldn't there also be the mortgage paydown and asset appreciation happening at the same time? 

Another variable. I could rent for 1yr or 2 and then sell, when hopefully realtor fees are reduced... 

History: We are 6 years into renting our first home, it has gone well and we are comfortable renting and what comes along with that. We are now moving from our current home(call it the 2nd home for purposes of this conversation) into a larger residence(3rd home). 

Question: Should we rent this house(2nd home), which has offers for $820k off-market to sell, or rent for $5k, which also has interested parties? 

Details: Current mortgage is $480k at 2.625%, $3,400 monthly payment. 

New Home: I would need to dump some of my brokerage accounts for the downpayment(so some capital gains taxes would need to be paid to finance the downpayment on the new house) or if I sold our "current residence(2nd home)" I wouldn't need to.

I understand the tax incentive of selling within 5 years of living there for 2 years, however, the cash flow seems larger then what I would get taking the money and investing in new RE in the future. 

What do folks recommend in this circumstance? 

We are taking on a b round for a piece of commercial real estate(remodel) + a business venture inside of that real estate. We are trying to figure out some of the best ideas regarding how to pay out the money we receive and the terms. One idea we had was to do a 14% annual return over the course of 4yrs, paid out quarterly and then having the option to pay the loan down early if we have extra/available funds. Does this sound logical, should we follow a different methodology? This would come from existing partners as well as private funding. 

We own the one we are renting. Just not the one we are about to live in.

What if the new purchase falls through and I have a Holding Deposit, but no lease signed on our current property. Am I breaking any laws by canceling it other than it not being a great situation for the tenant? Anything can happen in the underwriting process...

We have been paying the subs. When we fire them there will be a debate about how much they are owed for their trash work. We will have to negotiate with the Subs on what they did vs didn't, what equipment could be used on other jobs, etc. 

I think we are going to list it...

The building is roughly 14,000 sqft. 2 Floors. The intention is an event space, for weddings, corporate events, etc. But, could be anything else since it's "shell'ish" just due to the nature of an event space. 

Myself and several partners invested in a piece of commercial real estate + business to operate from this real estate. The hired GC is awful and has rung up the bill well beyond the Loans we have available to build the thing out. Meaning we will shortly run out of money and need to find more. Either via a better appraisal and more from the bank or private investors. However, we are likely putting the building underwater by continuing. The business operations will offer generous returns, but having the real estate underwater isn't good. We could stop construction and try to sell or lease it. Construction is 75% complete... What other options are we not thinking of?