All Forum Posts by: Derek Smith

@Lonnie Wilborn 

Welcome to the community! Can't wait to hear about your future success stories!

@Kimberly T. Thanks for the follow up info. It confirms what I was originally thinking and was touched by both @Will Barnard and @J. Martin it does not sound as if any urgency is there to sell your CA properties yet, ESPECIALLY if they are bringing in positive cash flow AND appreciating. 

By the sounds of it you have a good idea of which direction you want to go. If anything pans out with that 5+ property on the radar I would be interested in an update as to what plan you decided to execute. Thanks for sharing your experience with us!

@Kimberly T. 

Couple of follow up questions:

1. Do you already have a 5+ property selected you wish to purchase?

2. Is your triplex bringing home positive cash flow each month?

3. Will the terms of your commercial loan change if you sell (CA properties) prior to securing the loan?

The way I see it, if you're planning on leaving CA but not for a few years and you feel there is still appreciation to be made I would think holding on to it would be ideal. Continue reaping the benefits while it is closer in proximity to your home location. Even if you purchase the 5+ property prior to moving out of CA, I personally would not want to give up my other source of income (the triplex) as a fall back.

@Kimberly T. 

This is merely me thinking aloud here. If you're planning on selling your triplex regardless, why not proceed with the 1031 exchange? If you purchase your 5+ unit building THEN sell your triplex, will you be using a 1031 for an additional property or bite the bullet and pay capital gains?

I'm not an expert, however, what I do know is I do not want to pay taxes on things when I know they may be deferred. My question would be, if you do plan on selling your triplex AFTER you purchase the 5+ building, are you already forecasting how to use a 1031 to purchase like properties and will you have the means to take out an additional loan?

So much great information already provided, not much else to add. However, I will reiterate looking at ALL 111 listing is NOT a bad idea. You say you have 3 cities you're looking at, well in phoenix (one city) will have a plethora of zip codes to go along with it. By looking at each listing and potentially viewing some, you'll have a better understanding of where you want your market to be.

Again I agree with what everyone has said thus far. Start with broad strokes, that way you capture potential areas that may have originally been missed. Then slowly move towards a more narrow and defined search.

I will add that it may seem overwhelming at first, which it is. However, as you start thumbing through the listings provided you'll become more in tune with what you truly want in the end.

Good Luck!

As I read thru the forums, I certainly see/understand the validity behind proper checks/screening when searching for tenants.

My question is, what tools/resources, is everyone using with their potential tenants, to help safeguard your investments?

@Angie B. all that matters is having a workable market! Good luck with everything I am excited to see your future posts!

@Angie B. Sounds like a great start with 3 properties! Are you looking at maintaining all your rentals locally or have you thought about branching out?

Is it possible to include in the rental application that states smoking is not permitted within the dwelling?

@Kelly L.

Interior design you say, there is certainly some great value to be found with that experience. Have you thought about perhaps offering a staging service on the side? That may help use your skills to get your foot in the door with a magnitude of different real estate deals. Which means, the people who may hire you to stage may be an excellent source into wholesaling, rentals, or flips.