All Forum Posts by: Chris Yang

Thanks! Very promising info. I am okay with 4.75% for now given current volatile rates. Locked in 7/1ARM but will be on the lookout of refi opportunity to lower rate before 2029. 

Greetings!

Anyone recall how were the non-QM loan (DSCR, bank statement, asset-based...etc) rates looking last year when conventional loans were at 2.5%-ish? Was low to mid 3s achievable?

I am trying to get a sense on how low those loans could be when conventional loans at historical low. I am closing a loan with higher rate (4.75%), but thinking whether it's a plausible plan to refi in a few years if Fed lowers rate in the future.

Assuming excellent credit (760+), low LTV (60-70%), primary or investment property, and lots of assets (for example, 2M liquid assets to qualify 600K loan).

Thanks all!

 Being "that" friend, after some study, here's what I found. Assuming all passive activities from below.

1. Sale of SFH rental, get the 1099-S

2. Use Form 4797 to figure out the Net 1231 Gain from the sale on Line 7

3. The Gain from Form 4797 then goes to Form 8582 Part V Column (a) as current year Net income

4. Invest in new syndication deal before year end, get the K-1 with Net loss

5. Net loss from K-1 then goes to Form 8582 Part V Column (b) as current year Net loss

!IMPORTANT!

6. On Form 8582 Part I: Line 2(a) Net income will be offset by Line 2(b) Net loss and Line 2(c) Unallowed loss.

So technically, passive 1231 gain from a sale of SFH rental COULD be offset by the new passive losses from other syndication deals. Thus, reduce/eliminate tax liability.

Hello everyone, trying to get some sights for this topic.

I started to investing in large multifamily syndication deals lately. My understanding is we always want to do accelerated depreciation and/or cost segregation study to create a net loss to reduce tax liability.

I get that! It's brilliant and the beauty of real estate investment. But I plan to buy my primary residence next year and apply for a mortgage. I am worried by the time I am getting those K-1s at losses, are they going to affect my application?

I read some guidelines from Fannie Mae/Freddie Mac, and realize usually depreciation loss for rental units can be added back when calculation rental income on 1040 schedule E part I. But I don't see similar instruction when considering partnership income (schedule E part II).

My questions:

1. When applying personal mortgage, can I use distribution income to qualify while the business is at net loss for taxes purpose?

2. If not for above, is the passive loss going to impact my qualification, assuming it was created by accelerated depreciation? NOI is positive and I get stable cash distributions regularly.

Any input is appreciated!

Thank you for replying me, @Nina Hayden! Have you had good experience with Brad's event? Would you recommend it? When you said you are back at it, did you mean to sign up with them? The reason I ask is from the last 1 year I have seen a lot of REI "gurus" 's educational videos. They were great and I did learn things. But often times I feel some of them are just trying to sell course/trainings to you. What I really like is to know more investors and start working on real world projects. Of course I am not asking for free lunch, and I don't mind giving some profit to whom that introduce me into the field.

Hello fella Austinites,

I moved from SF Bay Area to Austin about a year ago with a goal of becoming a real estate investor and one day quit my normal W2 job.

Fast forward, I am now on track of my plan but also need some suggestions on future direction.

1. Bought something cheap and quick with cash to live with -- done

2. Bought my permanent residence -- done

3. Rented out 1st house -- done, but took longer than I thought (30-40 days) Lesson learned: vacancy, HVAC near end of life and need replacement == extra capital improvement

Now, I have also got to connect with some local investors (Austin & Houston area) and learned a lot from the experienced folks. I feel SFR might not be my type of thing, especially in Austin market. I have run a ton of buy and hold analysis daily, only found a cash-flowing SFR rental closer to the city limit is almost next to impossibility. I understand here it appreciates like crazy, but with limited cash, I need to use them more efficiently. Houses farther away from the city has better cap rate and CoC return, but the vacancy usually eats up profit quite a bit.

Then I tried to learn more about multifamily units. My next deal will be an 180-unit apartment syndication project in Houston. I am going to be just LP in this deal, but I really find it more interesting and easier to scale up. Higher occupancy, and more room for value-add up side.

Would love to connect to more local investors that specialized in commercial/multifamily properties.

@Bryan Noth Thanks! I like to make plans and execute them ;) Feeling accomplished when getting them done.

Shopping around currently, have not had relationship with local lenders yet as I am new to the area. Cash-out on investment property can be challenging as far as getting good interest rate. I will definitely ask around but also think BP forum is a great source, too.

What are the recommendations you'd have for cash-out refinance on a SFR in Austin area? I currently own it free and clear. The market value ~ 300K and I am looking for 70-75% LTV.

I moved a little over a year ago from SF Bay Area to Austin hoping to start my RE investing business.

My plan was: 1. acquire 1st house as temp living, 2. search/buy for my primary residence, 3. turn 1st house to rental, 4.  cash-out refi, 5. acquire next property, 6. repeat

Now I am right at the step 3/4 on my plan, need to take my capital out so I can acquire next property.

@Angela Reyna San Marcos sits on a critical location! Especially when I see some reports forecasting Austin + SA to merge as a single gigantic MSA by 2040. I am also currently live outside of Austin city limit, in Pflugerville. I watch the local economy thriving, yet it is still relatively affordable.

Thanks you, @Cameron Tope.

I'll start looking into those local meetups, I can imagine Austin is a very competitive market as the economy boom here in recent years. Ultimately, I am picturing somewhere else in TX for better margin.