All Forum Posts by: Danial Qureshi

Hi @Alex just sent a connection request I would be happy to help with points 1,2,&4 and I wouldn't mind learning how to do Direct Mail Marketing. 

-Danial

Hi Ethan, 

Just sent a private/direct message I don't mind meeting, I'm looking for fix and flip opportunities.

@Ashish Acharya not leaving GA just yet I still have about 1.5 / 1.75 Years until I have to move, but I'd love to continue expanding in the south. Thank you for the input I'll probably incorporate and have the paperwork finished in about two weeks. If you're free do you mind meeting up for coffee or dinner sometime this week or next?

-Danial

@Michael Plaks thank you didn't know there was a partial exemption I'll do some more research. 

@Account Closed sure I'll PM you shortly

Hi BiggerPockets Community,

I need some help in figuring out what my possible next steps are and just need someone to talk to since I don't know of anyone in my current situation.

I plan on moving to Chicago to get my MBA at Kellogg School of Management. While simultaneously building our real estate portfolio so that my brother and I can be financially free and give our families the time they truly deserve. 

I was thinking of liquidating one of my properties to acquire a small/medium (16-50 Unit) apartment complex. I'm in my planning stages and I want to figure out what is my best course of action. I could sell one of my properties (condo) use, that money for flips in Atlanta within the next 1-2 years build up additional funds to acquire an apartment complex, and to grow my portfolio, but I want to hear from some experienced investors and what they would do if they were in a similar position.

Current Picture/Portfolio: 

Property 1: 

• Condo (Atlanta, GA 30328)
• Current Rent = $1550/Month
• Utility Reimbursement = $200-300/Month
• HOA $383 (In line with HOA's for other communities)
• Purchased June 05th, 2015 and resided in property until Jan 22nd, 2017 (Total of 1.64 Years)
• Lease Started Jan 23rd 2017 and Lease Ends on June 30th 2018.
• Current Equity 135,000 (Purchase Price)  - 85,000 = $50,000
• Current Comps Similar Properties are selling for $155,000 to $170,000
• Current Mortgage Terms: 15 yr Fixed 3.325% Monthly payment of $996 (Includes Insurance and Property Taxes)
• Anticipated Total Earnings if Sold at End of July $64,500 (Sell Price $155K) to $78,500 (Sell Price $170K)  

Property 2:

• Town-home (Peachtree Corners, GA 30092)
• Current Rent = $2000-4000/Month (AirBnB) 60-70% Occupancy since November of 2017
• Purchased July 28th 2017 and currently residing in basement house-hacking with my younger brother.
• HOA $325/Month Covers, Water, Lawn Maintenance, Sewage, Security Gate
• Current Equity 336,000 (Purchase Price) - 265,000 (Remaining Loan Balance) = $71,000
• Current Comps Similar Properties are selling for $345,000 to $360,000 due to private/public school ratings going up shortly after purchase.
• Current Mortgage Terms: 30 yr Fixed 4.326% Monthly payment of $1823 (Includes Insurance,PMI, and Property Taxes.) PMI should come off as soon as I make a large lump payment. Bringing the monthly payment down to ~$1650-$1700
• No plan to currently sell for at least the next 3-5 years, since my brother and father will be residing here.

Property 3:

• Single Family Home (Snellville, GA 30078)
• Given to me by my father after my mother passed (Legally have not taken possession)
• Anticipated Rent $1500-$1700/Month
• Purchased June 1995 for $100K
• Current Equity 100%
• Current Comps $150,000 to $180,000
• Anticipated Repairs $20,000 (Should be repaired by end of April)
• HOA $0

My Questions:

• I know there is a capital gains exemption (250K or less if you're single, which I currently would be classified as) if you live in a property for two years. I haven't lived in the condo for more than 2 years (Only 19 Months/1 Year 7 Months). Would it be better for me to use the 121 exclusion or use this for a 1031 exchange as a result since it has 1 year of seasoning and has been for the past year been used as an investment property? I might have this all confused in my head, but I'm open to someone explaining to me how this would work.

• If I cannot claim the capital gains exemption since I haven't resided in there for two years would it be better for me to simply hold it for another year have two years of rental history on the condo and then do a 1031 exchange. Honestly I don't want to hold the property for another year if I can help it, since the HOA isn't the best and I was simply too dumb at the point of purchase to do my due diligence. Live and learn I guess :)

• Currently I do not have a LLC set up for any of the properties, by setting up the LLC at this point would it provide me some inherent benefit to set it up now? Knowing that I'll have only two properties that have any rental income, I know that I can show my income on a schedule e and that I can claim depreciation on that form. Would I be able to utilize MACRS? Or should I depreciate to a point where I can just make my tax liability 0?
• Can anyone provide me a guide to setting up an LLC or should I just use legal zoom or does anyone know of a CPA/someone who has set up an LLC in the Atlanta area that would be willing to assist me in the formation?

-Danial Qureshi

@Al Pat thank you!!

Hi Everyone,

I hope you all are doing wonderful first of all forgive me if this is in the wrong area of the forums. I figured I would go ahead and share because this website details your state laws as a landlord in a clean consolidated format. I want to know if this is helpful to you as a landlord when I was going through it for my state (GA) and I found it to be very helpful as a resource. Let me know your thoughts as I'm interested to see how accurately it reflects your state laws that you are familiar with.

https://www.landlordology.com/state-laws/

Just confirming but when is this event on the 30th of Jan 2018? 8AM in the morning to what time?

@Blake Shultz thank you for the offer I'll definitely take you up on it.

@Shepard Ager just sent you a message looking forward to connecting

@Mark A Story thank you for the offer lol you're not offending anybody, I was just curious because I was just doing an exercise with my brother and a few of our friends analyzing deals that way we simply get better at it. Utilizing Bigger Pockets as a resource allows us to protect ourselves from potentially harmful deals and I couldn't be happier with the feedback from people.

@Jay Hinrichs this is why I ask on the forums so that maybe I can learn something new, thank you for the input. 

@Blake Shultz Thank you for the assistance I didn't know that the city was rebuilding the entire interchange and the nearby areas. If you're free this evening I'll give you a call and pick your brain if you don't mind.

@Account Closed Thank you for the feedback, that's basically what I wanted to know!

Questions:

-Is this in a warzone? 

-Does anyone know the Birmingham, Alabama area well enough or recommend a Commercial/Residential Agent that I could speak with?

-Could someone drive by the property to give me a better idea of what I should be looking out for?

-Based on the rent roll and the information I have at hand this property seems like it has been mismanaged for years, is there a specific way you would speak with these kind of landlords?

Full Property Address is:

1160 13th Street N Birmingham, AL 35204

Current Listing Price:

$185,000

Number of Units:

22 of which 8 are occupied

Current Day Rents at 08/22 Units = 36% Occupancy:

(196*08=$1565 per month / $18,780 a year)

Valuation at 36% Occupancy:

$84,000 - $92,500 ( I would offer this price today since this would be based on the current rents which are abysmal probably due to a landlord who doesn't know how to market and to rent out to the region $200 rents are way below market rates) (Analysis in excel sheet - link below)

Prospective Rents at 100% Occupancy:

(500*22=$11,000 per month / $132,000 a year)

(600*22=$13,200 per month / $158,400 a year)

Valuation at 100% Occupancy:

$1,215,000 - $1,225,000 (Analysis is in excel sheet link below)

Projected Repairs: 

I currently don't know since I don't have pictures of the interior, but I've factored about $75K ($3500 per unit) for repairs since I don't know the condition of the interior. (I realize this may be too low should I budget closer to $150K - how do I gauge this?)

Relative Rent Rates (Trulia) $500 - $600

Relative Rent Rates (Zillow) $500 - $800

Relative Rent Rates (Rentometer)

Commute Times to Local Areas Heat Map I was specifically looking at UAB

Restaurants and Amenities Nearby

Crime Maps

I've provided a link below for all of my analysis and the current rent roll:

https://drive.google.com/drive/folders/16GwJct6Atz...