All Forum Posts by: Bob Willis

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I thought this was interesting. I wonder what the tipping point is to try and make this change. Any thoughts?

In my experience this is a very common issue with condos. I owned a unit in Scottsdale where I had two separate insurance claims from two different leaks from the unit above in two years. I owned another condo in Scottsdale where it was disclosed during the purchase process that the unit above had previously leaked into the unit I was purchasing. Get insurance involved and property management involved.

@Easton Hill - I see you are from Phoenix. The market here is SATURATED with STR. I cannot overstate that fact. With that said, a STR could still be very successful here if it STANDS OUT! I mean large, luxury location. Not trying to throw cold water on your plans, and if you are looking in other areas ignore my response. Best of luck either way.

@Alexis Colon I would check with local Property Management companies in the areas you are interested in. I found a Prop Mgt company that is more than just property management. The principals at the company work on renovations, consulting etc... I had lunch last week with one of the founders and basically they'll analyze a property, tell you what the ARV value will be, ARV rents (stabilized), and costs to get there... Obviously they do this in the hope that you'll use their rehab team and their prop mgt company... But that sounds like what you are looking for.

 Yes - do you know some people who would be interested in partnering with you? Raise funds that way. You would be the general partner (GP) and they would be limited partners (LP). Their funds would be truly passive, you pay them an ongoing rate, and they would get a portion of the sale when you cash out (whether thru refinance or selling the property). You would get into the deal with less money, but would run things, and get a portion of the proceeds (generally larger than the share you invested at the front end) when you cash out. When you cash out maybe you just refinance and own it outright, or maybe you sell for profit. There are rules to follow in doing all of this, but it is not too high of a hurdle. You have a track record as a multi-family owner which goes a long way. 

Can't you just keep the 16 units and create a syndicate to buy the 43 unit? I would try that.

Good luck

Can you still ask for a credit to get the issues (plug and vents) mitigated? Get a credit from the seller to get this taken care of...

No - there is no way to avoid the tax with the scenario you describe. If you want to move back into the property for another year (thus making it your residence in two of the past five years, you can avoid the tax on the gain).The only way to defer the payment of taxes on the gain is a 1031 exchange. Unfortunately you will need to purchase another property to leverage the 1031. Your existing property does not qualify. This is not my area of expertise but I believe what I say to be accurate. 

I assume you are talking about a requirement to publish notice of the LLC formation? If so, requirements vary state by state, but from my experience legal notices need to be published in "legal" newspapers. The definition of a "legal" newspaper also varies state by state. Sometimes notices need to run x amount of weeks to be considered complete etc... This should be something you could find on the interweb. Sorry I can't give you more specifics. Good luck.