All Forum Posts by: Arthur Schwartz

If I understand, the 1031 exchange is better when there's significant equity.  Here the equity seems "slim to none" so it seems better to simply sell, pay the taxes, and enjoy a great night out on the town.  My calculation of capital gains would be 500,000 * 95 = $475,000 after closing costs (reduced commissions if you are a realtor) less $450,000 or $25,000.  Add three years of depreciation to that; multiply by your marginal federal and state tax rate, and the taxes are probably modest.  You may want to consult with a CPA for an exact number, but If it were me, I would rather pay the modest taxes and enjoy the money from the sale.  (PS it could be important of the $50K in renovations were considered to add 100% to the value of the property, or only partly.  Again, it's an issue for a CPA).  Good luck!

You may want to consider the cost of insurance.  Dwelling fire insurance, for a landlord, can be rather expensive in Florida, and a flood policy would increase that cost substantially

Good morning! I am offering for sale a SFH and Duplex (three rental units) in Orangeburg SC.

Details

1. When I bought them, they were on one lot. This has been legally subdivided so each property can be bought, sold, or financed separately. Currently, there is a mortgage on the SFH but none on the duplex.
2. It’s strongly preferred to sell both the house and duplex in one sale, rather than separately.
3. Each requires some repairs but are being offered on a combined basis at a price well below appraised value. There definitely is a BRRR opportunity.
4. As a rental, at the listing price they can be close to the 1% rule.
5. Orangeburg is home to two HBCUs so there is a possible college play by renting to students, a fraternity, or a sorority. Each school may have a list of students looking for nearby housing.
6. Orangeburg is about 45 minutes from Columbia and about 90 minutes from Charleston. Unlike Charleston, no flood insurance is required.
7. There is a large outbuilding on the lot with the duplex, about 750 square feet. With proper permits, it could be fixed into a fourth rental unit. This would be a value add opportunity.
8. The SFH is about 1,400 square feet. The duplex is two apartments of about 750 to 900 square feet each; or about 1,800 square feet total. It would be possible to convert the duplex into an two level SFH.
9. Everything is sold on an AS IS, WHERE IS basis. Seller will do no repairs. Also, no seller financing.
10. The units are on septic, although with proper permits, they can be connected to city sewer.
11. The SFH and duplex share the parking area, which has enough room for four cars or more.
12. If interested, please contact my real estate agent, Renata Smalls; 843-864-3990 – Cell; [email protected]

Thank you!

Good morning! I am offering for sale a SFH and Duplex (three rental units) in Orangeburg SC.

Details

1. When I bought them, they were on one lot. This has been legally subdivided so each property can be bought, sold, or financed separately. Currently, there is a mortgage on the SFH but none on the duplex.
2. It’s strongly preferred to sell both the house and duplex in one sale, rather than separately.
3. Each requires some repairs but are being offered on a combined basis at a price well below appraised value. There definitely is a BRRR opportunity.
4. As a rental, at the listing price they can be close to the 1% rule.
5. Orangeburg is home to two HBCUs so there is a possible college play by renting to students, a fraternity, or a sorority. Each school may have a list of students looking for nearby housing.
6. Orangeburg is about 45 minutes from Columbia and about 90 minutes from Charleston. Unlike Charleston, no flood insurance is required.
7. There is a large outbuilding on the lot with the duplex, about 750 square feet. With proper permits, it could be fixed into a fourth rental unit. This would be a value add opportunity.
8. The SFH is about 1,400 square feet. The duplex is two apartments of about 750 to 900 square feet each; or about 1,800 square feet total. It would be possible to convert the duplex into an two level SFH.
9. Everything is sold on an AS IS, WHERE IS basis. Seller will do no repairs. Also, no seller financing.
10. The units are on septic, although with proper permits, they can be connected to city sewer.
11. The SFH and duplex share the parking area, which has enough room for four cars or more.
12. If interested, please contact my real estate agent, Renata Smalls; 843-864-3990 – Cell; [email protected]

Thank you!

Good morning! I am offering for sale a SFH and Duplex (three rental units) in Orangeburg SC.

Details

1. When I bought them, they were on one lot. This has been legally subdivided so each property can be bought, sold, or financed separately. Currently, there is a mortgage on the SFH but none on the duplex.
2. It’s strongly preferred to sell both the house and duplex in one sale, rather than separately.
3. Each requires some repairs but are being offered on a combined basis at a price well below appraised value. There definitely is a BRRR opportunity.
4. As a rental, at the listing price they can be close to the 1% rule.
5. Orangeburg is home to two HBCUs so there is a possible college play by renting to students, a fraternity, or a sorority. Each school may have a list of students looking for nearby housing.
6. Orangeburg is about 45 minutes from Columbia and about 90 minutes from Charleston. Unlike Charleston, no flood insurance is required.
7. There is a large outbuilding on the lot with the duplex, about 750 square feet. With proper permits, it could be fixed into a fourth rental unit. If converted into two floors of about 750 square feet each, the value could be substantial. However the cost would be substantial also. This would be a value add opportunity.
8. The SFH is about 1,400 square feet. The duplex is two apartments of about 750 to 900 square feet each; or about 1,800 square feet total. It would be possible to convert the duplex into an two level SFH.
9. Everything is sold on an AS IS, WHERE IS basis. Seller will do no repairs. Also, no seller financing.
10. The units are on septic, although with proper permits, they can be connected to city sewer.
11. The SFH and duplex share the parking area, which has enough room for four cars or more.
12. If interested, please contact my agent, Renata Smalls; 843-864-3990 – Cell; [email protected]

Thank you!

Good morning!  A triplex is available in North Charleston SC 29406.  Charleston is one of the most romantic cities in the USA.  The triplex could possibly be used for medium term rentals. There is space in the backyard to possibly build an extra unit, if proper permits can be obtained.  Please call real estate agent, Renata Smalls;   843-864-3990 to make an offer......

Seller financing is safest for the seller, when seller holds the deed, until paid in full. Otherwise if buyer fails to pay, seller has to incur legal expenses either to take back their ownership through deed or to assert a claim against buyers other assets (if there are any). If buyer used an LLC with no net worth AND the loan is non recourse, then seller is effectively defrauded out of their property. Again, "Seller financing is safest for the seller, when seller holds the deed, until paid in full."

if the pros won't touch it, it's probably a tear it all down situation

State Employees Credit Union & Coastal Federal Credit Union

If a hypothetical property is worth $100,000; with 20% ($20,000) down; and monthly expenses of $750; your net income monthly would be $250.  Annual cash on cash return of 250*12 or $3,000 on a cost of $20,000 would be a 15% cash on cash return, which is pretty close to the 10% to 12% you'll see if you look back through many of Brandon Turner's videos, where he walks through use of the Bigger Pockets calculator.