All Forum Posts by: Dori Arazi

Good news on the 1031. 

You can only have one primary, and my other houses are rented and declared as “rentals” with the IRS. They are still not considered rental?

Thanks guys, 

This "rings well". So you can 1031 from residential to commercial? It doesn't have to be the same asset class?

I have a couple of rental properties in California that I "stumbled into" as I purchased primary residences and moved. This is going to be my first attempt at taking REI more seriously. I have a good career that allowed me to put enough cash aside to give this a real go (along with equity from my current investments). The question now is, commercial or residential? I've posed this question to a few people (with biases) and have read a few books on the subject and I'm still undetermined. Everyone seems to have an agenda. Be it "Be the next best seller", or "pay me for being your guru". I am not planning to quit my job before I can financially lean on my portfolio, and I don't expect that to happen for another decade (at least), so that time availability should be part of the consideration. I'm not looking to get rich quick, but I am looking to win at this chess game. Like any compounded growth model, the first move has the strongest impact on the "domino effect". And I'm having a hard time figuring this first move out.

Would love to hear your thoughts. 

(As a preface, I'm rather new to REI on the larger scale).
I am based in California and am looking at the Nashville market for rental investments. I have a local team which I spent quite some time with and feel like a trusting report is there. As much as one can be, considering I have yet to close a deal there. 

Like everywhere, the market is drying up in Nashville and is getting very competitive. Properties are staring to go for above asking. Even at above asking the cash flow is looking good, but I worry about killing the equity upside. How do you guys determine that point where you should lean back in your chair and wait for a correction before diving back in?

You hit the nail on the head with the team. 

Thanks @Daniel R.. I'm working on the assumption its a "fulfillment/pack and ship" facility. That being said, and being somewhat familiar with how Amazon operates, this facility can also disappear in the next couple of years. Hence I'm trying to assess the biotech growth more than the low wage jobs the amazon facility will likely generate. If biotech takes strong hold, it can have a more significant impact. Thanks for the Euclid advice. The more I look into it the more I see it might not be the kind of location I'm personally aiming for. 

@George Hoover, it would be a pleasure to connect. 

Thanks @Matt Motil, @Ryan Evans.

I definitely plan to fly up, though even with a weekend spent, I doubt I'll have the intuitive zone insight a local agent will have. Having lived in downtown SF (which has the same sort of micro zone issue), I cant imagine anyone getting a sublet lay-of-the-land in a matter of days. Even with a guide. 

My hope is to find an agent/agency I trust and can see eye to eye with. 

That's not bad. How has your experience been with tenants treatment of the property and vacancy rates?

Understood. Thanks @Kristopher Hanks, @Jared Lichtin.

To risk stating the obvious. I'm looking for those, C+/B areas that are on the way to becoming B+/A. On Paper Euclid seems to be a perfect candidate. Its right on the crossroads of Biotech, Amazon and lake front. How would you rate Euclid right now?

See for yourself :) 
https://www.google.com/maps/search/biotech/@41.430...

https://www.indeed.com/q-Biotech-l-Cleveland,-OH-j...

That's a lot of job openings in biotech for one area. 

Again, just an outsiders research point of view. Hence I'm looking for the experts on the ground to verify.