All Forum Posts by: Christine C.

Hello! I closed today on my first income producing property in Miami, Florida! I'm very excited for this new venture and would like your advice on how to manage my first duplex. I have two tenants in their mid 30's. I need to (1) tent the property asap, (2) do landscaping to remove trees that are damaging to the roof, (3) take measurements of each unit so that I can begin plans to remodel, (4) determine whether to exercise the kick out option or do a novation on Tenant 1. Tenant 1's rent is way below market, has another 9 months left on the contract that has a 180 day kick out clause. He wants to stay long term. I'm considering asking him to sign a novation at FMV in consideration of not exercising the kick-out clause. Tenant 2 will be around until March/April. For the long-term, I'm also considering having a long-term tenant (maybe Tenant 1) in one unit and do short-term rentals in the other. General advice is welcome and also specific advice regarding the 3 points above. Thanks! -Christine

What neighborhood?

@Kevin Cespedes

Check out a lender like Visio. They don’t need your tax returns :)

Thanks!! Great info and great ruling!  Feel free to share the Rev. Proc. of whatever source.  Would love to read the Service's ruling.

@Vince Scolari

Not sure you can do a 1031 if the transaction actually is a purchase/sale of LLC interest rather than real property. There might be an exception I'm unaware of.

Definitely need to chat with a real estate lawyer. Make sure they’re also aware that tax reform restricted 1031s to ONLY real estate.

@Lindley Garcia

If you have a mortgage, I’m not sure you’d be able to transfer title without bank approval. Check your loan documents to see if there is a provision for “permissible transfers” and simply call the bank to confirm.

Hello! I’m considering purchasing a condo in Miami that accepts Section 8 housing. Current tenant is under Section 8. 10% cash on cash returns.

Also, it’s my first investment property.

Good idea? Or should I run away?

Hello!

I’ve been analyzing deals in Miami and have been having a hard time finding any deals that yield higher than a 5% cash on cash return on residential condos.

I keep listening to podcasts and videos in experienced investors who don’t go for anything with less than a 15% return. So I don’t know if Im just too inexperienced in finding better deals or that they just don’t exist in Miami.

Can anyone share their experience in Miami and their personal market?

@Frank Patalano

I’ve been analyzing a number of properties in Miami ($180k and below) and finding a few deals that yield 5%-7% cash on cash, or $150 net profit per month.

What holds me back is wondering whether just investing in the market at 7% return is easier and yields the same over the same period of time.

If there is an excel or a calculator that can compares essentially (i) cash on cash returns plus RE market appreciation plus after tax analysis (assuming S Corp or SM LLC with flow through profits and losses) with (ii) the opportunity cost of 7% stock market returns taxed at LT capital gain rates, it would really make my decision to pull the trigger so much easier.

Is this too much to ask? 🤦🏻‍♀️