All Forum Posts by: Catherine Javier

This is a common question, Whether to keep, refinance, 1031, or sell. I created the following decision tree diagram to illustrate the decision process (click to enlarge).

The above decision process is based on the property’s performance record, with the goal of achieving financial freedom in mind.

Financial freedom is not just replacing your current income. It's about having an income that will enable you to maintain your current standard of living for life. This requires a rental income that meets the following requirements (click to enlarge):

Where to buy? The markets that can help you achieve financial freedom (see the Dependencies above).

Thanks Eric! This is useful for a newbie like us! Appreciate you!

0 Votes

Orlando, Florida

Thanks Dave! So for a Qualified intermediary, I see that you are, does location/state matter? And what are the fees! Thank you!!

0 Votes

Orlando, Florida

Quote from @Bonnie Low:

I'd sell if I were you. 1) I don't like HOAs and certainly not for STR or MTR 2) the numbers don't make sense for you to invest in a big kitchen/bath renovation 3) it doesn't look like it's appreciating very well. You don't necessarily need to invest in WA in order to be closer to home. WA is not a landlord friendly state, but if you are going to invest in WA, the eastern side has some hot spots like the tri-cities area that may yield good cash flow and appreciation and still be close enough for you to go there when you need to.

Thank you@Bonnie Low this is very useful. Now O will research about these tricity you mentioned!

1 Vote

Orlando, Florida

Quote from @Benjamin Aaker:

From your options, #1 is a big sink of cash and I can't tell how much that increases you rent. #2 is a no due to cash flow negative. #3 is the way to go. HOAs cause a lot of headaches for investors as their mindset is usually different. That's another reason to sell.

@Benjamin Aaker Thank you for your input!

0 Votes

Orlando, Florida

Thank you @Jonathan Greene!
we changed the driveway because of the cracked cements of driveway cause by the tree roots. Hoa said that we need to change/repair driveway otherwise we will be fined.
We also had just a recent problem with plumbing due to tree roots. Hoa does not allow us to cut the tree though. They said it needs approval from city.

we appreciate your thought!

0 Votes

Orlando, Florida

Hello everyone! Asking for your expert opinion. Any thoughts are appreciated!

We bought at $212k, we put 20% DP used DSCR(~45k because it was appraised at $206k).

Some of the updates we did: changed roof& hvac, minor cosmetics, replaced driveway spent probably $40k.

Remaining loan is about 152k @5.75%. Mortgage is only less than $1400. For 2025 we are assuming it will rise at $1500-1600

Same townhomes pending at $260’s; if we upgrade kitchen/bathroom around $275 up

Current tenant leaves Dec 31, 2024 Assuming rent stays the same for LTR, we will be cashflow negative since Home/Hazard Insurance and Taxes will increase inevitably.

Should we:

1. Upgrade/Renovate update Kitchen, Bathroom & Flooring which would cost us about $50-60k with furnishing, keep it as MTR or STR then refinance or **midterm rents 2400 and up with comps; then Refinance or….

2. No renovations, but cashflow negative (wont hire property manager anymore just to breakeven) @$170-1850

3. 1031 and buy in WA where we can manage on our own

Same problems with others, we have limited cash available. if we do buy on WA , few concerns are:

We are intermittently rehabbing our current home to be rented as Nursing Home eventually hopefully in 2 yrs.
home in WA are more expensive and would need higher downpayment and it would be challenging for us because our DTI is high already, we would have do to a dscr thats 100k++ DP

Sorry for the lengthy post, hope to hear from you!

0 Votes

Orlando, Florida

Quote from @Nate Meeker:

@Catherine Javier

IRS Pub 527 states "Example. You rent a room in your home
that is always available for short-term occupancy by paying customers. You don’t use the
room yourself and you allow only paying customers to use the room. This room is used
solely as a hotel, motel, inn, or similar establishment and isn’t a dwelling unit."

Common areas don't apply. Only if you have a portion not used for anything else and you meet all other rules. You would want to allocate expenses on a sqft. basis.

Thanks!
by the way to qualify for the STR, of I am not mistaken it should be 7 days or less right

so 7.2 days immediately disqualifies me immediately?
or 8 days and above

I just averaged the length of stay…

0 Votes

Quote from @Michael Plaks:

@Catherine Javier

I don't know a company local to you, but these three experts run their respective cost segregation companies that provide it nationwide: @Bernard Reisz, @Yonah Weiss, @Julio Gonzalez.

Also, read this post: https://www.biggerpockets.com/forums/51/topics/1075919-five-...

Thank you

1 Vote

Tacoma, Washington

Quote from @Christian Block:

I would reach out to KPKG.

Thank you!

0 Votes

Tacoma, Washington

Hello BP family!

Just asking for recommendation for Cost Seg Company in Tacoma WA?

Thank you!

0 Votes

Tacoma, Washington

All Forum Posts by: Catherine Javier

Catherine Javier has started 26 posts and replied 91 times.

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Cost Segregation on Primary Residence if renting out the basement

Post: Recommendations for Cost Seg?

Post: Recommendations for Cost Seg?

Post: Recommendations for Cost Seg?