All Forum Posts by: Danny Luu

Hi All, 

I have an rental property in Houston, TX that I would like to 1031 exchange into a duplex in California. Only caveat is that I would like to live in one unit of the duplex and rent the other one. My question is, would it be possible to utilize the benefits of the 1031 if I am living in one unit of the duplex? The other unit would still be a rental but would the IRS consider this a like-for-like property exchange? Any advice would be greatly appreciated! 

Thank you all for your help! looks like i need to do some more homework. 

Hi, 

I have a rental property in TX and live/work in CA (don't own a home). I've owned the rental property in Texas for about 7 years now and have built up some equity. I spoke to my current mortgage bank (Regions Bank) and to Quicken Loans and they both said that due to Texas mortgage laws, they are not able to do a cashout refi on the rental property. They said in order to do a Texas Cashout on a rental property, I must own a primary residence in Texas. Any other out of state Texas investors or lenders heard of this before? I should be able to pull out about $60k on this property so its tough to be told that it's not possible. Is there anything I can do? Any advice would be appreciated!! thank you. 

@Garrett White  Best way is to get in contact with a good commercial broker that has done previous deals with SB. They're a great tenant to have because they pay high rents and draw a lot of traffic but they're very specific when it comes to picking new sites. A few things you should keep in mind:

- they usually want a drive-thru (may be an issue if there isn't one already and you need to get it entitled. Their requirements may be different in the east coast but I've done multiple in the west coast and they've always wanted a drive thru)

- they have very specific requirements when it comes to HVAC, electrical, signage, etc. (if you're planning to remodel an old building, make sure to factor these costs into your number)

- they typically won't build their own building but will do their own TI build out, which typically takes 6-8 weeks 

- since they're publicly traded, they have very strict deadlines for new store openings. So as a developer, you better check and double check the dates you commit to on your lease 

Hope these help! 

Saturday and Sunday works best for me. I work all the way out in Upland so weekdays would be tough. Thanks. 

Hi all, My realtor/property manager in Houston has approached me with an interesting investment property. Someone she knows is looking to sell a laundromat. They currently own 5 total and looking to unload a couple. Im very interested in hearing from anyone thats had some experience with this type of investment. Im inquiring about more info regarding the deal and will update as i get it. Thank you!

Thank you all for your comments. Looks like the consensus is... DON'T do this? I understand partnering with a friend/family can become a sticky situation quickly, but I'm trying to find avenues that can make it work, as i feel that this could be a good opportunity. But like i said, i won't jump into anything unless I'm prepared and all the information you guys are giving me are great. Thanks. 

Please continue the input if you have any ideas that could help. I really appreciate it. Thanks! 

My understanding is on conventional financing, both of our names will appear on title. I understand that agreements must be very clear and on paper prior to jumping into a deal together. This is very important to me and I believe this is is important no matter who you're doing a deal with. On that note, are there things specifically that i SHOULD address? This would be my first "partnership" type deal. Of course I'm doing more research myself but those that have had experience in this, could you provide some direction and advice? Thank you! 

Hi! I have a few questions regarding a HOUSE HACK idea... Sorry this might be a little long but i want to give as much detail as i can to get better feedback. Thanks!

The property of interest is in LA (near USC). It is a 4plex with two 2/1 and two 1/1. I currently live within 30 mins of the area and am pretty familiar with the properties around it as I've been interested in that area for a while. I have been analyzing this specific property for about a month now and the numbers look good but I've just been hesitant to jump into it myself because its slightly over my comfort zone in regards to price (i know i may be being too conservative but I'm trying my best to make my first LA property a good experience). My plan was to do a traditional house hack... live in the 1/1 unit and rent out the other 3 units.

Anyways, in comes my friend. He's been looking for a SFR to buy as a primary for a few months now. He isn't on this site and doesn't know much about investing but recently I talked to him about the idea of a duplex instead of a single family and he seemed intrigued. Long story short, an idea popped into my head this morning as I was driving into work listening to a BP podcast. Why not go into the 4plex together?!

I was thinking my friend and I can go into it together. Split the DP and basically treat the 4 plex as 2 connected duplexes. I'd be responsible for one 2/1 and one 1/1 and he's be responsible for the other half. When i say responsible i mean regards to management. So he can choose to live in either one and rent the other. We'd also split Mortgage, Ins, and Taxes and vacancy (resv) down the middle. Other expenses such maint, and capex would go into a pot and used as needed. Each unit is separately metered. 

Does anyone have any ideas, advice or experience on this? If this sounds like a dumb/bad idea, please feel free to say so but please provide a reason. Any advice would be greatly appreciated! Also, what types of exit strategies would work well in this situation? I've been reading on BP about partnerships and I'm wondering if anyone has done anything similar to this and the type of exits you had? Thank you again! 

Im interested! Dont live in OC but if the meeting is on a Saturday, i dont mind driving. Will be coming from Monterey Park. Just interested in meeting other SoCal investors as I'm very new to RE investing. Thanks!