All Forum Posts by: Cassidy Burns

I just read this entire thread and I want to say, thank you.  Thank you to everyone that contributed as this has been eye opening.  I definitely fell in the "cash flow or nothing " "2% rule or nothing" type mentality.  But have since learned from my lessons, planning exit strategies, and ready to refocus. 

Great feed.  

Thanks all.

@Brian Ellis , great advice and was definitely the way I was leaning.  Thanks for the input!

Hi BP,

Quick question:

How are you using your $$$?  I am coming onto a larger sum of $$ from 2 flips that will be closing soon and just want to have my ducks in a row.  So I have a Line of Credit on one house that is at 5.75% and has $23,000 left to pay down.  Should I take this excess cash and pay this down to get rid of that monthly payment or should I put it into consolidate it with the rest of my RE investing stash and move on to my next building?  

Just curious how everyone else is distributing their $$.

Thanks

Also, in DC and selling multifamily, its not as much in marketing as it is having the right network of investors in the pipeline that will sell the property.

Its really dependent on the particular neighborhood.  I have seen a few lower appraisals but they are mostly from larger corp America banks.  When an agent is accepting an offer , the purchase price isn't the only thing you should be looking at.  The "team" of the buyer is just as or more important in making sure everything moves smoothly .

@Jason Gottschalk welcome to BP and Washington DC~

@Jaron Walling the appraisal off the initial purchase or the new appraisal from the new loan?

Hi BP,

If you have an investment property that you did the BRRR strategy on but want to eventually do a 1031 Exchange, does the capital gains credit based off of the original purchase price or the new loan on the property?

Thanks!

Depending on which part of SE DC this could potentially work. But DC is an interesting market in terms of it has many "submarkets" within it. Meaning certain area rooms are going to be more desirable/drive higher individual rents per room. I also think you should look into Silver Spring/Rockville townhomes/SFH as this would work too. Potentially even Alexandria, VA.

Good luck.

Great buy in Bethesda, congrats.

I personally would rent it out immediately, at least for the first year while trying to subdivide .  If you can get the variance for MC then after that first year you have the best option on the table.  

I do think you should be careful within the next 1-2 years with new construction development in Bethesda as it has tremendously slowed down and the numbers just aren't being reached in certain areas anymore.  

If the teardown value is $835k, you already have 60k in equity initially , you rent it out for the first year, still losing that $700/month ($5,600) but you will retain that in principal pay down from your tenants.   Your exit strategy can be just resell as is to another developer or put on open market for $835k (if it doesn't appreciate at all) , make $45-65k and move to the next project.  But I do think owning this in Bethesda undervalue has a HUGE upside.  

Good luck.