All Forum Posts by: Bernadette Andrews

I'm doing a 1031 exchange and just went under contract for the purchase of two villas which are under construction in Kingsland, GA. They should rent for $2100-$2200 and just a few months ago I would've had pretty good cash flow. Now I'm so disgusted by the interest rates and concerned that they could increase even more by the time the properties are completed in November so I'm considering an extended rate lock with a float down option. I wish I could sit on the sidelines but paying the IRS is the last resort.

Yesterday, I received a quote for a 6.625% rate plus closing costs of almost $13K for each property due to extra cost for the 150 day rate lock.  This is for a 30 yr fixed conventional with 25% down. Today she texted, " Rates dipped slightly today to 6.5%, and the Origination fee decreased from $5,831 to $4,900." Please help me determine whether I need to move forward now or shop around for better financing options? Should I pay almost $8K over the standard 3% closing cost to lock the rate or take my changes and buydown later? Thank you so much for the input on a tough decision.

I'm doing a 1031 exchange and just went under contract for the purchase of two villas which are under construction in Kingsland, GA.  They should rent for $2100-$2200 and just a few months ago I would've had pretty good cash flow. Now I'm so disgusted by the interest rates and concerned that they could increase even more by the time the properties are completed in November so I'm considering an extended rate lock with a float down option. I wish I could sit on the sidelines but paying the IRS is the last resort. 

Yesterday, I received the quote below with a 6.625% rate including closing cost of almost $13K for the 150 day rate lock  from a loan officer with Guaranteed Rate. Today she texted, "  Rates dipped slightly today to 6.5%, and the Origination fee decreased from $5,831 to $4,900." Please help me determine whether I need to move forward now or shop around for better? Thank you so much BP community. 

Thanks so much everyone. Totally makes sense to address first and do it before the tenants move out. Really appreciate being part of this community of pros to help me make better/smarter decision. Thanks a bunch. 

Hello! I am hoping to get some advice on about an investment property we're about to put on the market in VA. The area has very low inventory and our tenants are moving out in May so we believe now is the tell to sell. Here's the concern...there are some settling cracks and ceiling damage that are quite visible in several areas of the home. In order to address them, we'd have to delay the sale until the tenants vacate at the end May and repairs may delay listing until sometime in June. On the other hand, we have an opportunity to strike while the iron is hot. Please advise on the best approach to take and whether these cracks could hinder the sale of an otherwise great home in the best school district with no other homes for sale right now. Thank you so much for the help thinking this through.

Hello! I am hoping to get some advice on about an investment property we're about to put on the market in VA. The area has very low inventory and our tenants are moving out in May so we believe now is the tell to sell. Here's the concern...there are some settling cracks and ceiling damage that are quite visible in several areas of the home. In order to address them, we'd have to delay the sale until the tenants vacate at the end May and repairs may delay listing until sometime in June. On the other hand, we have an opportunity to strike while the iron is hot. Please advise on the best approach to take and whether these cracks could hinder the sale of an othewise great home in the best school district with no other homes for sale right now.

Hello! I am hoping to get some advice on about an investment property we're about to put on the market in VA. The area has very low inventory and our tenants are moving out in May so we believe now is the tell to sell. Here's the concern...there are some settling cracks and ceiling damage that are quite visible in several areas of the home. In order to address them, we'd have to delay the sale until the tenants vacate at the end May and repairs may delay listing until sometime in June. On the other hand, we have an opportunity to strike while the iron is hot. Please advise on the best approach to take and whether these cracks could hinder the sale of an othewise great home in the best school district with no other homes for sale right now.

Thank you both for taking the time to reply. Yes I understand that the mortgage from the relinguished property must carry over into the replacement property. Just wanted to make sure I can recast the loan without impacting the 1031 negatively. Glad my plan will work and appreciate the feedback. 

My husband and I are preparing to do a 1031 for the first time. We're planning to sell a home in VA and purchase the replacement in DC. We are financing and plan to put down 20%, or hopefully more. Since the replacement property is much higher and we'd like to reduce the principal, is it possible to recast (lower principal) using a lump sum amount from an inheritance I'm expecting within less than a year of completing the exchange? Thank you for some expert advice.