All Forum Posts by: Amit Rana

Yes so the buyer wants the roof replaced (based on inspection) and I agreed to a certain amount seller credit. But they are getting FHA loan and a large credit will get flagged so the solution offered is a escrow holdback.

Thanks!

From a tax perspective is giving a buyer a credit (for repairs) same as putting amount in an escrow holdback? Would the escrow amount count as selling cost and hence my taxable gain? Or does it act more as repair/improvement cost?

Great advice - thanks everyone!

Hello folks,

I bought a 4-unit in 2019 and put it up for sale few months back. I incurred a bunch of major repair costs over the years (e.g. new boiler, rebuilding of damaged porch, etc..) all paid through positive rental cash flow and so felt it was time to cash out. I got an offer which comes out to around 15% IRR after-tax.

However, I am now thinking of keeping the property because:

1. Don't know what to do with the proceeds (i.e. interest rates are high and finding a new property for 1031 might take some time) 

2. Cash flow is actually pretty decent and I can now increase rents having done most of the repairs 

Any advice/suggestions?

note: property has appreciated ~24% over the four years (per appraisal report)

I'm looking for structural engineer in Chicago as well - can you share the person/company?

Hello experts,

found an interesting retail/office (commercial) unit in a great location (A+) and since this is my first commercial unit, I wanted to review the numbers and get advice on what to look out for.

List Price: $199,000

Gross Area: 2035

Net leasable Area: 1830

Monthly Rent: ~$2500/month

Estimated CAM/sf: $1.15

Tax: $9777

Cap Rate: 7.6% 

Cash ROI (assuming cash purchase): 11.71%

Is there something else I should be considering?

Thanks for your help.

Hello BiggerPockets friends,

I bought my first investment property around 4 years ago (a 3-unit building) and it's been doing well in terms of cash-flow. I am ready to invest in my next property but am unsure whether I should stick with multi-unit buildings, move to SFH or even try flipping.

I initially thought I would maybe buy a 2 or 3 unit and stay in one of the units but haven't found anything that I would want to live in unless I really look at properties in the $1m+ range. 

Any advice on how to formulate an investment strategy or plan?

Hello,

I'm venturing into my first flip, I've have read J. Scott's book on flipping and am also working with an agent who has done a few flips.

I have an opportunity for a short sale a 3 bedroom 1.1 bathroom home with attached garage built in 1988 and with following data:

-List price: $85,000

-Rehab Cost: $28,000 (seller has disclosed $24k of major plumbing fixes)

-ARV: $130,000 (based on comps in the area)

Max Purchase Price (MPP) based on all the expenses is coming to $77k. Here's full analysis:

I'm considering putting offer of $65,000 and not planning on going over $75,000.

Given there is a considerable plumbing issue and given the numbers above, would this be a good first flip to go for?

p.s. I also appreciate any feedback on the analysis sheet I created and items I might be missing

I did a quick analysis on cap rates and assuming same expenses for similar type properties in the area, cap rates are between 4-6%.

Lesson learned is not to under-estimate the repair/maintenance. I'll hold onto it until I see a good opportunity to sell.