All Forum Posts by: Dennis Hajan

Is there a chance that the rental you currently have could be made into an Airbnb instead? I guess it would all depend on the least that you have with that tenant how long they are there for and instead of selling try the Airbnb route to where it might be beneficial to have your expenses paid off faster of course depending on the location as well and considering if your state allows that kind of thing and there's no anti-competition laws or something like that. Hope it works out for you and good luck

The area isn't somewhere someone would want to stay. It's not located next to anything attractive. As of right now, there are 0 properties in the same city listed, and very few near it and those that are just random single rooms for a night.

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Originally posted by @Scott Wolf:

Dennis, you can always 1031 out of LI. As someone who grew up there and owns small shares in a couple of commercial buildings there, I understand the equity/cashflow conundrum the Island presents.The Hudson Valley has gotten me good returns, or you can buy a low price point NNN property anywhere throughout the country, and have a management free property.

Always happy to chat.

The Hudson has been looking attractive for a couple of years now for sure. Do you think there's a lot of NNN properties to be had out of state in this price range? How do you feel about the valuations on commercial given a lot of people looking to 1031 and causing a "bubble"? In addition besides loopnet, and costar w/ broker any other ways to source NNN property out of state?

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Originally posted by @Dave Foster:

@Dennis Hajan, That pool is a real red flag for me. Unused or not it exists. And pools at their best are liabilities. They don't usually work well in garden variety rentals. In addition you just rattled off 10-20K of repairs that will be needed shortly. that would eat up a whole bunch of NOI. You've gotten some good equity. I can't imagine you're getting enough in rent to make it a great rental to hold.

So like @Scott Wolf and @Chris Mignone said I'd seriously consider selling. But do the 1031 exchange for sure - You've also got a looming tax bill if you don't do the 1031 of at least $35K - $50K . with depreciation recapture as well.

1031 sounds good for saving the capital gains or at-least delaying but at this price I’m not sure there’s much on the island. If anything I will just be in the same position without the equity.

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Originally posted by @Chris Mignone:

@Dennis Hajan Hey Dennis congrats on having a great investment property! Sounds like you've done very well with this house. Have you thought about selling through a 1031 exchange to avoid paying the taxes?

Yes from what I understand you have find an intermediary and you have 45 days to find it and 6 months to close it. However it must also be an investment property. This would work better for multi family but your from Long Island the multi family houses are slim.

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Originally posted by @Scott Wolf:

@Dennis Hajan What are the current rents and COC you're getting?

Currently based on the above post, and without the above info, I'd sell and do a 1031 exchange.

current tenant paid $2700/month

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Deciding if I should continue renting this property or to sell-off. I moved out of it to move closer to work so I'm 45 minutes away from it.

Current Mortgage: $161k Balance @ 4.625% 20 years conventional- 12 years left. Refinanced about 7 years ago from a 30 conventional to 20. Heloc: $14k @ 9%. Total monthly payment with insurance(2500) and taxes(11k) is $2600. Current Value: $450k.

mortgage break down :$1432 $811.10 is principal / $621.19 is interest

Has been rented for 5 years to current tenants, but they are set to be moving out of state. Currently, there is no way to value add to get increased rent unless I rent out each room to different people which would be a headache.

The house is located in Suffolk county long island NY the area is a middle-class suburb(94k household income avg). The house was purchased in 2001 for 300k. The current value is approx $450k.

House is in relatively good condition, the roof is 10 yrs old, windows 8, the boiler is 3 yrs old, the siding will need to be replaced in the front soon(5k). The kitchen was remodeled 12 yrs ago. Possible replacement of a few appliances coming up. General maintenance will be needed. There is a pool that has not been in use in 5 years so I'm expecting that to possibly be an issue but it was never in the lease so unless that changes for the next tenant its not a concern. Since it's been rented for 5 years there have been no major repairs thankfully, but that's always a possibility with any rental.

What would you do?

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All Forum Posts by: Dennis Hajan

Dennis Hajan has started 1 posts and replied 6 times.

Post: Should I sell house or keep renting it?

Post: Should I sell house or keep renting it?

Post: Should I sell house or keep renting it?

Post: Should I sell house or keep renting it?

Post: Should I sell house or keep renting it?

Post: Should I sell house or keep renting it?