All Forum Posts by: Derek Sperzel

I have 40 rentals in the Jeffersonville, Indiana area, they are all currently long-term rentals, and we use a 3rd party management company.  I'd like to transition some of our units into mid or short-term rentals to increase cash flow, however, our current mgmt provider does not manage furnished rentals.  Does anyone have any recommendations for the Southern Indiana Louisville market?

Thanks @Rob Bergeron for the referral, I just spoke with Nick.  Thanks @Peri Eryigit I also spoke with Gary Witt.

I got a 16 unit multifamily property under contract yesterday in Clark County, Indiana (just across the river from Louisville, KY).  The home inspector I've been using for years just had knee replacement surgery so he is currently unavailable.  I am hoping some of my local investors can recommend a qualified home inspector.  Thanks in advance!

@Dave Foster thank you for the information and the excellent explanation. 

Thanks @Marc Rice.  I have left a couple messages with Qualified Intermediaries in Ohio with the hopes of getting an answer.  I'm not taking any action until I find out my options, but I'm also not very patient so I posted on BP hoping to get some direction.

My Wife and I own SFR properties in Springfield, Ohio and we live in Indiana. My Wife has a W-2 and I've been a fulltime investor for about 5 years. The Properties in Ohio are in an LLC owned solely by my Wife and they are all owned free and clear. I've got a 16 unit complex under contract in Indiana near where we live and I want to sell one of our Ohio SFR via 1031 to help with the down-payment. All our Indiana properties are in single member LLCs in my name only (my Wife isn't active whatsoever in any of the rentals and inherited the Ohio properties). Is there a way to lawfully 1031 any of the Ohio properties into a new investment in Indiana and do so into an LLC not owned by my Wife (they'd go into an LLC owned by me solely)? OR could we do a partner LLC between her and I?

I'm assuming there are 1031 rules against this, but want to confirm. Thank you in advance.

The Real Book of Real Estate by Robert Kiyosaki & Tribe of Mentors by Timothy Ferris.

Congrats Jeremy! A couple of thoughts below:

LLC is good to have, but certainly not necessary for your first deal. Frankly, the LLC is only necessary if you already have money for people to come after.

You can find state specific lease agreements her on the BP Fileplace but I can't remember if you have to be a Pro member or not. 

Don't waste time between now and closing because it will only cost you more money. Start lining up your Contractors to solidify their bids. That was one of my biggest mistakes early on.

Hope that helps, best of luck!

I'd suggest meeting with a small local bank about setting up a Business Line of Credit collateralized by your existing rental. That would allow you to tap into your equity to acquire another property. I'm paying Prime+1%, or 6.5% interest. There are some setup fees such as, appraisal, closing fees. I paid around $500 to setup my line, and pay another $200 annually to maintain the line, above simple interest when the line is being utilized. Think of it as a large credit card with a low interest rate. 

@Carl Fischer Not sure if I misunderstood the intent of your post, but the 1031 Exchange rules changed back on 12/22/2017, and now they only apply to real estate.  Therefore, @Jay Chandler could not use the 1031 to defer the taxes on his non-real estate investments.  The Opportunity Zone is the only option I'm aware of in this scenario.