All Forum Posts by: Ann Seffens

I am contemplating a 1031 into a DST. I have been watching videos & reading lots of posts, but one thing I haven't seen covered is how much time, after a DST is invested in, do you spend 'managing' the DST? Meaning, do you continue doing 'due diligence' analysis after you have the DST? And, how much due diligence analysis did you do prior to investing in the DST or did you just leave the analysis to your financial advisor &/or the DST sponsor?

 Thanks for the info Dave!  I'm still doing research on DSTs.  So far, I'm not impressed with the projected returns and have to pick my jaw up off the ground regarding the fees.

I would love it if I could find properties with 80% LTV that cashflow, but I have scoured Zillow/Redfin to find properties that cashflow, and have come up empty handed. Thoughts on finding cashflowing 80% LTV properties?

I have a SFR that I bought 25 years ago and have refi'd a few times, pulled money out over the years, so my basis is low but my mortgage isn't as low or as paid off as I'd like. That said, I do have a good interest rate on my mortgage (3.625%) and I have about 50% equity in the property. It is currently rented and is cashflow positive.

Because it has appreciated and I have a good amount of equity in it, I'm debating my next steps.  I'm researching 1031 exchanges and Delaware Statutory Trusts (DSTs), but because I have a mortgage on the property, that seems (to me) to complicate things a bit.

If you were me, what would you do?

Specifics:  house is in the SF Bay Area, bought for low $200k, mortgage is low $400k.

Investment Info:

Single-family residence buy & hold investment in Concord.

Purchase price: $219,500
Cash invested: $75,000

Ranch-style SFR, 3 bd, 2 ba, semi-open concept for a 1955 built home. 1796 sqft on 0.25 acre lot. 2-car garage was converted into what could be used as a bedroom because it does have closets, but it also houses the furnace and water heater. 1-car garage was added on. Has 2 small decks out back - 1 from the living room, 1 from the master bedroom.

How did you add value to the deal?

I have remodeled both bathrooms and did a small remodel on the kitchen - cabinet refacing and slate tile floor.

Lessons learned? Challenges?

1. Screen tenants well. Make sure they have plenty of income - I require 3xs the rent. Check references.
2. Inspect regularly.

Investment Info:

Single-family residence buy & hold investment in Concord.

Purchase price: $219,500
Cash invested: $75,000

Ranch-style SFR, 3 bd, 2 ba, semi-open concept for a 1955 built home. 1796 sqft on 0.25 acre lot. 2-car garage was converted into what could be used as a bedroom because it does have closets, but it also houses the furnace and water heater. 1-car garage was added on. Has 2 small decks out back - 1 from the living room, 1 from the master bedroom. I have remodeled both bathrooms and did a small kitchen remodel (reface & new floor). Beyond that it's just been general maintenance and 'lipstick & mascara' (new paint & carpet periodically).

I did have 1 long term tenant that did not treat the house very nicely, so there was a bit of cleanup after they vacated, but beyond that, I think my screening process has provided with, if not totally stellar, at least decent tenants over the last 20 or so years.

How did you add value to the deal?

I have remodeled both bathrooms and did small remodel on the kitchen - cabinet refacing and slate tile floor.

Lessons learned? Challenges?

1. Screen tenants well. Make sure they have plenty of income - I require 3xs the rent. Check references.
2. Inspect regularly.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $219,500
Cash invested: $75,000

Ranch-style SFR, 3 bd, 2 ba, semi-open concept for a 1955 built home. 1796 sqft on 0.25 acre lot. 2-car garage was converted into what could be used as a bedroom because it does have closets, but it also houses the furnace and water heater. 1-car garage was added on. Has 2 small decks out back - 1 from the living room, 1 from the master bedroom.