All Forum Posts by: Asher Anthes

Thanks so much!  I will check these out today

I'm looking for a software that can use my quickbooks online account and give me real time up to date visability on my properties.  A system that allows me to look at my historical P&L and Cashflow right next to projections.  Also something that quickly can show return on equity.

Have you guys found anything out there that works well for all these functions and gives you a quick up to date dashboard for all your properties?

I have 15 rentals.  I also own 19% of our family cabinet manufacturing business, and actively manage it.  I work 45-50 hours / week in the business.  Our clients are custom home builders.  So, we are directly working in the construction industry.  My question is, does this qualify me as "Real Estate Professional" status?

IRS Code 469-7-c(7)(C): 

"Real property trade or business
Real property trade or business. For purposes of this paragraph , the term
"real property trade or business" means any real property development,
redevelopment, construction, reconstruction, acquisition, conversion, rental,
operation, management, leasing, or brokerage trade or business."

I asked my CPA and he is looking into it, he says he's not sure.  Do any of you own businesses in the construction industry and claim real estate professional status?

I have my full 10 fannie freddie properties in my name.  I put 1 in my wifes name a few years ago when she had full time income as a nurse.  So, we have a few years tax returns now showing that one rental as hers.  But now, she's not working anymore.  Would I be able to pay her a salary as my property manager, and would the bank look at that as full time income along with the one rental to qualify us for 9 more fannie / freddie loans in her name?

I talked with a commercial loan broker, but all the options have balloons.  My goal is to lock in as much low fixed rate debt for 30 years on good cash flowing real esate.  Would like to have 20 total mortgages in 3 years.

Let me know your guys thoughts, or if you have found other solutuions!

@Jeff M. I’m in North Carolina looking for the same thing as you. The problem with Penfed is they won’t do the investment property heloc if you own more than 3 properties. If you find someone that will do it, please let me know. Cause this is exactly what I’m looking for. Thanks!

@Sean Autry where have you found a lender that will do HELOCS on investment properties? I’ve been looking, but haven’t found a bank that will do them yet. Thanks!

In my opinion you should take out a new mortgage against that house, and use that capital to keep investing in more property.

If you take out the loan and intend to occupy that property for a year, you can get 80% loan to value and about .5% lower rate. If you want to rent it out right away you would get 75% LTV and a higher rate.

When you go to buy the second property, you may be able to buy a fixer upper with all cash and then refinance that one after you fix it up.

This is pretty much what I did (minus inheriting the property) and I have 11 rental units now.

One thing to be aware of is your debt to income ratio in order to qualify for mortgages.  The bank will let your monthly debt service be up to 45% of your monthly income.  And they'll only use rental income on that ratio if you have some history renting.  So as soon as you start renting property, make sure to claim the income on your tax returns right away.

Hope this helps...

I didn't realize that the new property or properties have to exceed the value of the sold property.  This may be difficult, because my goal is to go from one $240,000 property to several 80,000-100,000 properties.

I'm meeting with an accountant and a 1031 intermediary to find out more details.  Thanks for all your help guys!

Originally posted by @Avi Garg:

Why are you calculating equity return? How much cash you put in? A better idea would be to refinance to tap that equity and use it to buy more properties. Doing this, you will not be restricted by the 1031 exchange timeline.

 I'm calculation return on equity because it's more relevant in comparing what I'm getting now to what I could get if I turned that equity into 4-5 lower priced properties.  My return on investment is fantastic on this property because I only put $6,000 down on it 6 years ago, and I cash out refi-ed it 3 years ago.   

If I cash out refi-ed it again I could only get 75% LTV (so pull out only $40-$50k and I would be increasing my rate from the current 3.75% to probably close to 5%.

Hey guys, just need some advice here.  I'm in Charlotte, NC and have 6 total properties (1 is my primary.)

The first one I bought is now worth about $240,000 with a little work, and I owe $130,000.  My tenants in that property are moving out in a few weeks.  If I want to keep it as a rental I need to put in $10,000 into floors and paint.  If I want to sell it I probably need to put $15,000.   The property would rent for $1700.

I have about $120,000 liquid already to continue buying properties, but my question is would it be wise to sell this one and use the additional cash to buy 4-5 more distressed properties cash this year and refinance them.

That property would currently only be producing a 7% cash on equity return.  If I rolled those proceeds using a 1031 in several more $80,000 to $100,000 properties I could get that return up to 30%+ easily.

I've never sold a property before, and my strategy up until now has just been keep buying.  But I'm trying to figure out when it makes sense to move equity around like this.  Also, who knows how long 6-8% annual appreciation will keep up, everyone out there says it's slowing down significantly.

My primary goal is cash flow (1st) with long term equity build up (2nd).

Thanks for any input!