All Forum Posts by: Allen Smith

Need advice! I am contemplating 1031 exchange in a paid off vacation rental roughly $650,000+ profit. Any ideas on the taxes I would pay if I chose to not 1031? My cpa is saying 32% roughly in taxes but IRS says 15-20%. What am I missing?

I am not a new investor but I am looking to level up into apartment complexes. It seems to be a daunting task as I don't really know what to analyze. If anyone has experience finding, analyzing, and managing apartments or if you are looking for an investor please reach out. I have the capital, just not the knowledge so I'm trying to change that.

Looking to purchase my first vacation rental. Is it common to put in a offer as soon as you find a property before you look at it. What is the etiquette for this? I am noticing the good deals go fast as they do with traditional rentals. How do you manage being long distance and not able to view the properties in person? All advice and/or quick tips are welcome. 

Thank you!

@Tim Herman appreciate the advice. Ill raise the capex on my future analysis.

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@Stephanie P. Appreciate that advice

I have been looking for the easiest way to finance my first rental property and I wanted to see if anyone has experience with Balloon Mortgages. I have a bank that will give me a ARV loan up to 85%, the 1st twelve months are interest only, and down payment is rolled into the ARV loan. After 12 months it swaps to a 5 year loan 20 year amortized. Bank says I can refinance at any time. Anyone used this strategy? I just feel like their is a big catch with this.

I am curious as to which is better and why. Using a home you get at auction for $60,000 with an after rehab value of $160,000. Would it make more sense to take your $100,000 and move to the next flip OR rent, refinance, take your initial investment back, and reinvest into another rental? I am planning to use the BRRRR method on my first house but my spouse wants to flip. Need some advice.

@Courtney Jones appreciate the advice. Im just keeping an eye out for the perfect rental. I know it will come, just got to be patient.

Well.....after running the numbers on this HELOC by myself, I feel like it's not enough. I owe $147,523 on our home that I purchased for $169,000 6 or 7 years ago. I did invest some money into it but it is only 1700 sqft in a neighborhood where properties rarely sell over $100 a sqft. Even if it appraised at $175,000.00 that leaves me with $27,476 in equity of which I can only draw 90% of. So that's $24,728. So estimating a $10,000 down payment on a fixer upper, that would only leave me $15,000 for repairs. That's not even figuring in closing cost and realtor fees. I'm starting to feel defeated with all of this, but I'm trying to find a way. Any help would be appreciated.