All Forum Posts by: David McFarland

Thanks everyone for your helpful comments.  I have referred the issue to my (new) management company.  I'm in the process of changing companies so I have faith the new folks can deal with it.  As an aside, the old management company (that I terminated a couple weeks ago) gave the tenant my personal cell phone number so I got a call from her yesterday which was awkward and highly unprofessional.  Not cool and validates my decision to term the old company.

Ok, I'm at a loss...  He's the email I got yesterday from my tenant.  I have no idea how she got my personal email address:

"Hi I am at xxxxx Tucson, AZ.  I want to talk to someone about the my rent. The other lease' has passed away I am struggling to pay the whole 1,400.00 rent. I want to know if u r willing to work with me somehow? I have tried to notify (the management company) of my situation and have not received any help. Please let me know if something can b done to help me. Thank u"

I'm at a total loss on how to proceed.  Naturally, my heart goes out to this individual (if the story is true).  The tenants have always paid on time and has been good tenants.  She has already given notice that she will not be renewing citing her roomates (or partners) death.  Lease ends on 7/31/24.  

I don't want to ruin this lady's credit or anything but I also don't want to get played.  Any advice???

Thanks,

Dave 

Appreciate any recommendations for a trustworthy agent in the metro Phoenix area with expertise / focus on small multi-family. Looking to 1031 Phoenix triplex into a replacement property. Thx. 

Dave 

I know you are not my accountant...  So speaking in general terms:

I have several appliances that are pretty old in rental properties I acquired this year (ex: a 14 year old washer and dryer).  When I plug in the numbers to determine the actual cash value for depreciation purposes I get a negative number.  Does this mean I cannot depreciate it because it's too old?

Thanks!

Dave

Hello BP community,

I am finding the rent estimates from BP rent estimator and Rentometer are vastly different for the same address!  Any insight on which you find more reliable or do you just split the difference?

Thanks,

Dave

Hello Anthony,

The market in Fort Collins area (where I live) is crazy right now and it's difficult to get in and make numbers work for rentals. SFHs are selling for $350+ / sq. foot. I currently have a SFH that will likely sell for $400,000+ but rent is only $1800 - $1850 / month. If you have flexibility, I would consider Greeley as some feel this is an up-and-coming market. I recently read the 2020 Milken Institute report which pegged Greeley at #20 nationally:

https://milkeninstitute.org/si...

Just be aware that Greeley is a big oil and gas town so I'm thinking that some of the wage growth cited in that report was from the 2018, 2019 oils and gas boom that has slowed significantly.  That said, it only makes sense that Greeley will continue to grow as Fort Collins is totally built out and rapidly expanding to the east toward Greeley.  Greely is also host to University of Northern Colorado so the opportunity exists for student rentals which could be more stable.  I'm not sure about pricing there as I currently do not own anything in Greeley.

Feel free to message me.

Dave
 

Where would you invest $400,000 in 1031 money in the US?  I definitely have a preference toward multifamily, focusing mostly on wealth-creation / appreciation, not cash flow.  Thank you for your ideas!

Dave

If you had around 400 K to 1031, where are some locations you would look to invest in a multifamily deal?  Looking to maximize appreciation, not interested as much in cash-flow.  Thinking of 25-30% down so hoping to close around 1.4 - 1.5 million.

Thanks,

Dave

I've been researching the tax liabilities associated with the "final exit" after a series of 1031 exchanges.  I have had some folks caution me that they "can't afford" to exit after 30 year of real estate investing but I cannot figure out how.  I learn best with examples so am hoping that someone can give me an example of their personal tax liability after many years in the business.  I understand I'll be on the hook for long-term capital gains (15-20%), state capital gains (4.63% in my state of CO), depreciation recapture (capped at 25%) and Net Investment Income Tax (3.8% on gains above $250,000 - I'm MFJ).

Maybe some folks just don't understand the power of 1031 exchanges or maybe I just need to understand it better.  

Thanks.

Dave