All Forum Posts by: Blake Shultz

@Aman Sidhu Birmingham is a great market to own rental property in, glad you are coming! While I currently manage my own properties, as I grow I will probably turn it over to a local PM. @Spencer Sutton and GKHouses are awesome. I have had a lot of coworkers and clients use them with nothing but good reviews. 

I would be happy to help you however I can while you are in town next week. It sounds like parts of Center Point, Hueytown, and Fultondale would be good areas for you to start looking in. The market is heating up but there are still cash flowing deals out there!

@Wilson Lee I own a quad on Center Way S right around the corner from you! I have done a handful of renovation loans with local banks here in town and would be happy to pass the contact to you. Feel free to reach out anytime!

Sounds like you know the market well, and I think your numbers look great. You should be able to get Sec 8 in there and get a little higher than $500/mo each. Good luck!

@Brian Schmelzlen and @Steven Hamilton II

Thank you for the help! based on upcoming projects for this year, it does look like I could possibly off set the gains with a decrease of income from other deals. By not being apart of the LLC that owns the property, I think a 1031 is not an option. In this case, looks like paying the taxes is the cost of this education!

Hey BP!

This is officially my first Forum post that is not a response to one of y'alls questions! Any advise is appreciated, thanks!

One of my very first investments was partnering with a seasoned investor/realtor friend who let me tag along and learn from him in a purchase/remodel. The property is a quadplex in an appreciating area of Birmingham Al. I put in a few thousand upfront and with a back ground in construction, put in a lot of time in helping remodel the units. I am not on the loan or the deed, but had more of a "silent investor" role in the deal. (I have since learned to get anything and everything in writing even if it is with good friends!)

All of this initial work was in 2014. We got 3 of the 4  units remodeled and rented, and kept the 4th unit occupied with the low income (on time, easy to deal with) tenant. At the time, we did not have the funds to remodel the 4th. My partner now wants to refinance and remodel the 4th unit. This property has been a great cash flow deal, but over the past few years I have branched out and started investing on my own. 

I am now looking at getting bought out of this deal with money coming from the refinance (which we have both agreed is mutually beneficial) but I am having trouble with how to legally avoid all the taxes on the significant gains I will get in doing this. 

I understand a 1031 exchange does not apply here for multiple reasons. Is there any tax loop that is similar for this situation that  I could roll these gains into other property? I have identified a few properties and also have some under contract that I could roll this $ into if possible.

Thanks again for the help!    

- Blake

Hey Molly!

Those are two great areas here in town that are moving very quickly! It is tough to find available multi-family in Birmingham, especially in those parts. I would be happy to keep an eye out for you, and maybe send some other options your way! 

Feel free to reach out anytime and let me know how I can help!

you are welcome to call anytime!

Hey Daniel,

From the surface that does look like an attractive deal. I saw it pop up on the market and drove by it last week and discovered a few things. 

A big portion of the vacancy could very well be due to mismanageement (based on exterior appearance, broken down cars and windows, exterior trash etc.) but another huge factor that dramatically hurts the value of this property is the construction going on around it. 

The city is rebuilding the entire interchange of I-20 and I-65 right there. There will be a flyover that cuts across/over 12th Pl N (street backs up to this building), and it looks like an onramp on 13th St n (right around the corner). This increased traffic noise could potentially hurt your projected rent numbers and also increase turnover (once you fix the vacancy problems). As an investor (realtor and contractor) in Birmingham I would think your price per unit with only seeing the exterior would be at least twice your budget ($3,500 per) if not more. 

I hope this helps! Feel free to reach out to me if I can be of any additional assistance! 

Luke Henderson is awesome, Dave Condon is also very good

Hey Jamie! I’m a realtor and investor in Birmingham. I use Bill Blaising for all of my rehabs and he is awesome. Very honest and upfront with everything he does. His company is called Prime Painting and Contracting Llc. Google his company and you should find him. If not, reach out to me (through arcrealtyco.com or just google my name) and I’ll get y’all in touch! Tell him I sent you over!

Hey Bp family! I am looking to buy my first rental property and would love some feedback on if it is a good deal or not. It is a triplex in an appreciating market, an older 2 story house divided top and bottom, and a small garage apt around back. Numbers are as follows: Purchase price - $185,000 Rental income - $1,850 ($750, $750, $350) Insurance - $109/Mo Taxes - $209/mo Cap ex - $185/mo Utilities - $200mo Maintenance- $185/ Mo I feel confident the rents could go up to a total of $2350/Mo but current leases do not run out for another 6 months. The seller has done 90% of the reno work on the property including all HVAC, roof, and some foundation work. What's left is 4 windows and a few small misc items. I want to base my purchase on the current numbers/conditions and not off the potential the property has. Would you buy this property? What else am I not taking into consideration? Thanks for the feedback!