All Forum Posts by: Ashley Noethe

So, I understand the overarching idea of what a 1031 exchange is, but have some questions ..

1) Do you have to roll over all equity you have in the property to the next deal? Or, just profit? For example - if you purchased a property for $100,000, put 20% down to have a loan of $80,000, then sold it for $150,000 .... would you have to roll all $70,000 of equity into the next deal OR the $50,000 that was profit above the purchase price? 

2) Talk to me about the like-kind property criteria .. so if you did this on a single-family it would need to be another single-family? does it have to stay in close proximity to the original property? 

We are in Iowa but ultimately looking to get into short-term rentals out of state. A super "justspitballing idea from my newbie real estate mind is if we could take equity we earned on a flip, get the down payment back, and roll the profit into property out of state we intend to use as a short-term rental. 

Congratulations on your first rental! We just purchased our first as well. Very comparable to your property ..  a low cost 5 unit multifamily in Indianola that cash flows well. I also recall reading "Rich Dad Poor Dad" about ten years ago as a young college student. I wish it was as meaningful then as it is now! I had to crush some limiting beliefs first I suppose ... but hey, better late than never. Once you get the first deal under your belt, it is definitely exciting to start searching for the next. Best of luck on your next venture! 

Hi Nathan, welcome! My husband and are new investors in Iowa south of Des Moines. 5 doors so far and excited to grow. Iowa is a great place to be, however as mentioned, you have to do some digging and research to find great deals. Best of luck! 

Oh my goodness, this thread is AMAZING!! It is both educational and hilarious. Trying to hold in my laughter at work. Excited for more updates. 

We recently purchased a 5 plex in Indianola and used Community 1st Credit Union. 

20% down, 20 year, 5.25% with a 5 year ARM.

Not sure on the answers to your questions but just wanted to say welcome! I am located in Iowa south of Des Moines and my husband and I just bought our first rental property here. I actually grew up in central California near Modesto. Best of luck on your new venture!

What an amazing story! I work in education as well. Over the course of the last year or so I have been exposed to entrepreneurialism in a few different ways and had a complete mindset shift. My husband and I have decided to start investing in real estate and bought our first property, a 5-plex, about a month ago. It refreshing to hear stories like yours which inspire us to keep moving forward. Congrats on all your success and best of luck in the future! 

@Dannon Anderson Everything going well so far ... granted we only closed last month so it has not been too long yet! We have 1 vacant unit from a former tenant who moved out before we closed. I went to clean out the space yesterday and that was quite the process but I suppose instances like that occasionally is what we signed up for. Hopefully we can mitigate that happening again in the future. We actually hired property management so we will be pretty hands off for the most part. 

Hey there! I am from Iowa as well and currently reside south of Des Moines. My husband and I just purchased our first 5-plex rental property. Sounds like you have similar goals. Best of luck finding your first property and good for you for getting started early! 

The LLC formation process is simple, you can file electronically directly through the state website or you can use a service such as LegalZoom for a little higher cost. To get an EIN you just use the IRS website. As I said, we formed an LLC we are using for our rental property but I heard recently that an S Corp formation is better for wholesaling. I still have more research to do on that. I agree with you, getting answers from attorneys has seemed to be a challenge. We do not plan to begin wholesaling until consulting with an attorney over how to best set up our business and to have them look over a contract to ensure it is legal for use in Iowa.