All Forum Posts by: DJ Roshan

Hello, I am wondering if the capital gains tax exemption of up to $250,000 for filing single, $500,000 married still applies to a residence that has a primary residence but also several rental mobile homes. Any reason the rental aspect would disqualify that exemption?

Looking at eight 2bd 2 ba and two 3bd 2ba rentals on about 10ac sold together in the Midwest. There is room to build additional homes. They are in the country within 10 - 15 min of small college town w/ population of 20K & County population is 45K. They are within 5 min from Interstate access & within 1.5 hrs of two major metros in opposite directions down same interstate! Price would be around 700k. Current gross rents are about 6k/mo, homes built almost 20 yrs ago. I'm assuming the 7 shingled roofs are orriginal 3 are metal. There are 5 wells & each supplies 2 homes and all share one Lagoon for sewage. Each home has a carport under same roof as house, a shed and a nice little yard & all have pretty view of cattle pastures. I think market could bring rents up to $700 - $725 for 2bd units and $800 - $850 for the two 3bd units. Of course current owner says they have maintennce expenses very much lower then normal over the last 6 yrs they have owned them. Taxes and insurance expenses are pretty low at just under 14k/yr combined. Based on most rules of thumb they would barely cash flow right away, but with rents brought up and no major capex they could cash flow around $100 per door. ps may have opportunity for seller financing and/or better price.

Thoughts?

Thanks in advance.

Looking at eight 2bd 2 ba and two 3bd 2ba rentals on about 10ac sold together in the Midwest. There is room to build additional homes. They are in the country within 10 - 15 min of small college town w/ population of 20K & County population is 45K.  They are within 5 min from Interstate access & within 1.5 hrs of two major metros in opposite directions down same interstate! Price would be around 700k. Current gross rents are about 6k/mo, homes built almost 20 yrs ago.  I'm assuming the 7 shingled roofs are orriginal 3 are metal. There are 5 wells & each supplies 2 homes and all share one Lagoon for sewage. Each home has a carport under same roof as house, a shed and a nice little yard & all have pretty view of cattle pastures. I think market could bring rents up to $700 - $725 for 2bd units and $800 - $850 for the two 3bd units. Of course current owner says they have maintennce expenses very much lower then normal over the last 6 yrs they have owned them. Taxes and insurance expenses are pretty low at just under 14k/yr combined. Based on most rules of thumb they would barely cash flow right away, but with rents brought up and no major capex they could cash flow around $100 per door. ps may have opportunity for seller financing and/or better price.

Thoughts? 

Thanks in advance.
  

Does anyone have a bad experience or see any reason not to accept a full year(the lease term) rent payment in advance? This single family home rental will be in AZ.  Seems like a great opportunity to me! Also anyone familiar with AZ law know if you are allowed to protect youself from damages from "servcice animals" I read that for pet deposits service animals are NOT pets.

TIA

DJ

@Cory Hoffman

Sorry, don’t know why I didn’t see this! donaldj.roshan gmail.com

Does anyone have an easily edited teplate for letter of intent to purchase?

I found one in here from a while ago, and it is NOT manageble at all! 

Please send to me if you have one or post a link.

Thanks,

DJ

Hi Ronald, 

This is for an Auto Repair business we run from the building.  The repair business pays everything except Mortgage on the Real estate/building. 

Thanks,

DJ

Yes agreed...thanks!

Looking for a quick and simple NNN lease agreement template. I have a Real Estate Holding company leasing to another business I own.

@Ronald Rohde, more good points to consider, thanks! I really want to invest more in real estate, but I may just invest in another small business! Cap rates are so small now and my ROI on the small business I bought 4 years has been phenomenal!