All Forum Posts by: Dave S.

We did a 203k renovation loan. It worked great, but you need to find the right contractor. Our guy was experienced in the VA loans and 203k. So the contractor doesn't get paid until the job(s) is done, so he needs to have deep pockets to cover the materials and labor until the job is signed off. If he runs a good business he'll have the tens of thousands of dollars to cover the running costs until the bank pays him. If not, you're going to have problems. Whoever you hire needs to know and fully understand this concept upfront. Hope that helps...

Looking to start a new life in San Antonio area, family of 4. CA is just too expensive. Both properties should sell for twice what we owe, and that's being conservative.  

Strategy: Do the 1031 Exchange on a really nice duplex, or 2 duplexes or maybe a quad plex all within our exchange budget of 500k-550k. We will then (hopefully) move into one of the rentals on the initial move to Texas. 

Our primary house will be empty and I'll come back for last cleanup and repairs and put it on the market. 

We'll get jobs in San Antonio, wait for the primary to sell. Then buy a new primary in the area. Probably putting down around 150k-200k down payment on something in the 300k-400k range.

Preliminary numbers show a positive cash flow of 1000-1200 per month on the rentals, this includes property management, big TX property taxes, insurance including healthy umbrella. Or almost enough cash flow to cover the new primary note, if not all of it.

Does this all sound right? Too good to be true? Still doing homework but is there anything I'm not thinking about. Is this crazy?

Do you need to get pre-approved to do a 1031? I've been a landlord since 1998.