All Forum Posts by: Brandon Turner

Hey Stephen,

I'm just wondering how this all turned out? Did you get the property filled up?

Thanks,

Brandon

I agree with what almost everyone above said. Refinish the floors.

You can rent a "U Sand" machine from Home Depot and you really can't mess it up (unlike a belt sander, this is lighter grade and uses 4 orbiting sanding disks). Sand it for a few hours (or get a high school kid for $10 bucks an hour) and put on a dark stain. The bad parts of the floor will look like awesome character.

I think whether selling or renting, this is the way to go. If you rent it, and the renter is stupid and scrapes a huge dent in it, or spills some red wine and doesn't clean it - just take some sandpaper, some stain, and varnish and in 10 minutes you fix it. If you use Laminate- your tenants WILL scrape their Grandma's antique china cabinet across it and ruin it. Your laminate will last 2 years. Your hardwoods will last until you sell.

Good luck!

Oh and if this is a lower class rental - by all means, paint the floors. It will take one hour, cost $40 bucks, and you'll be done.

I know this is an old post, but I'm curious -

The IRS says (I thought) you are suppose to use the same amount for depreciation year after year. But property values are always changing, sometimes huge. So if my property is worth 30% less this year, shouldn't my depreciation amount be less as well? (or vice versa if property values go up)

Any ideas?

"Investing in duplexes, triplexes, and quads" by Larry Loftis. Thats what got me started. Good hands on and simple approach to real estate investing for beginners.

"The unofficial guide to Real Estate Investing" by Martin Stone and Spencer Strauss. This book helped me understand the numbers and how to actually grow wealth. I loved this book.

Rich Dad Advisors guide to Real Estate Investing. This is hands down the best book I've read on "big-picture" apartment buying. And since thats the direction I'm moving toward, its indispensable in my arsenal of books.

Good luck. If you have any questions about books, let me know. I've read way too many :)

I'd buy a 700,000 24-unit nice but slightly mismanaged apartment complex using a bit of seller-carryback 2nd mortgage and a commercial loan, live off $4000 of cashflow each month, and sell it in two years for 1.2 million.

Yep, that deal came across my "desk" yesterday. I called today and 2 offers came in today, and they accepted one. The only thing stopping me from calling yesterday - I didn't have the $125,000 for a down payment. I had my financing lined up today too.

So thats what I would do if I had 125,000 yesterday. :) Today? I'm with James - Going to Vegas.

I know a guy who does 2 and 2 - meaning 2 percent per month and 2 points down. thats more than 24% apr. Thats crazy, but I suppose on a super fast flip, the 2 points would be nice.

I haven't laughed that hard all week. European Style Wood Floors. I love it.

I'm assuming you are talking about wood floors (like hardwood) not plywood or OSB? Or would you paint them too? I can't imagine particle board looking good painted.

Thanks guys for the imput.

James - I hadn't thought of that idea - but I wonder, if I put the property into an entity, I think that would trigger the tax as well. But maybe not if it was transfered for $1.00 or something. Hmmm. Thoughts?

and Bill, I agree - churning properties is messed up. But I was curious about the question because of an apartment complex I am buying. The seller sold it 8 years ago and just took it back in foreclosure and we were trying to figure out if he would have to pay excise tax again (or Real Estate Transfer Tax as noted above) when he sold it to me. It seems a bit silly to pay it twice on the same property. And the tax is $8,000 so its fairly significant on this property. I just want to let you know I'm not a creepy slum lord takin' advantage of people :)

And to answer my own original question, I think we have discovered there is no way around paying the tax unless maybe doing what James said above. I will look into that.

Andrew - if you are looking for a hml, I think the best way is to talk to real estate agents/brokers. Especially the ones who sell a lot of REO's. They know which HML's that investors are using, and they would love to get you acquainted and sell you some property too. Good luck!

Also David, I looked at www.lakesidemoulding.com and am curious. Did you use the wood doors or the MDF doors? I have never heard of using MDF for cabinet doors. It seems with all the messy wetness in a kitchen they may get ruined easier.