All Forum Posts by: Dustin Dummer

@Dave Foster Under the scenario where I sold the duplex and purchased the rental portion with the 1031 and purchased the upstairs as a primary residence using the sale of my current home, how does that work through an actual purchase? How is a purchase value determined for the rental units? Does the entire sale still go through the mortgage company as one purchase with a credit allocation from 1031 as payment for the determined rental portion value?

I found an interesting deal for a lake home that could serve as a primary home with 2 apartments below. I’m considering purchase options. 

Option 1 - I can sell my primary home and purchase the lake home.

Option 2 - Can I sell a duplex using 1031 exchange to purchase the lake home? Again top floor would be primary residence, bottom rentals. Is this permitted under 1031? This would free up the money from the sale of my  current home and allow it to be rented.

@Matt Doerr thanks for responding. The problem with @Brandon Turner is he would also never get started without getting a "deal". I feel like I hear his words 'get a deal' ringing in my ear. But to your point, I also want to get this train moving. After watching the best podcast I've ever seen with @ChrisHerren, I'm thinking it might be better to possibly invest in two lower-price duplexes spreading out the risk while doubling up on units. My concern with the more expensive property is that it would eat up most of my savings, preventing me from purchasing another property unless I find an alternative financing source.

I'm trying to purchase my first investment property. I'm looking at the following two properties. I'm having analysis-paralysis. Without experience, it's difficult to just look at the numbers and decipher if either or neither is a potential investment.

3 bedroom 2 bath/2 bedroom 1 bath; 2,112 square feet duplex:

NOI $13,686; CoC ROI 12.72%; Pro forma cap 7.51%; Purchase cap 7.51%; 50% Rule Total monthly income $1,550; 50% for expenses $775 Monthly P&I $585, 50% rule cash flow $189. (Property qualifies for .05% loan rate discount over the other property). This property would require little maintenance and more stable renters but it's certainly not any kind of a great deal. It also has a garage for each side.

Two-2bedroom 1 bath duplex; 1800 square feet duplex:

NOI $11,652; CoC ROI 10.72%; Pro forma cap 8.96%; Purchase cap 9.71%; 50% Rule Total monthly income $1,300; 50% for expenses $650 Monthly P&I $383;
50% rule cash flow $266. This property has more potential for vacancy or rent issues but also has potential for remodel and raising rent.

Evaluation advice would be greatly appreciated! 

I'm seeking an investment loan for my first investment property. I have excellent credit, a primary and secondary property and 401K funds as assets. I'm looking to get a loan for $60,000. The property is located in Missouri. Please contact me if you have a private financing option.

@Arjay Vergara What option did you choose for financing?

I'm wanting to delete some projects in my deal analyzer but can't find option. Am I missing somthing?

I'm seeking investors to form partnerships for real estate ventures at the Lake of the Ozarks and surrounding areas. Lake of the Ozarks is one of premier lake vacation and retirement property areas in the United States. Owners from all over Missouri, Kansas, Iowa, Illinois, and beyond have properties at LO. I have missed out on a couple of opportunities due to insufficient resources on my own. I'd love to discuss the development of a potential partnership. If interested, contact Dustin. 573.353.0309 or [email protected]

She has heirs, I'm going to talk with them. For sake of the discussion assume they rights and decide they want to sale. If they don't and payments are not being made then the home will likely go to bankruptcy. I'm trying to better understand the actual process of a wholesale deal if it fits the situation. I read articles on wholesaling but the steps are listed simply as 1. Find deal 2. Secure property 3. Find investor (in this case a retail buyer) 4. Close the deal. But it seems like there's more to it such as the type of contracts as well as negotiating with the bank.

I have a hypothetical deal based upon a real life situation I just encountered. A person is sick and is going to have to leave their home. I don't have all the details yet but let's say the home is worth at least $150,000. She may owe $50,000 and possibly behind on payments. What would be the best approach to this situation if a deal could be made? Is this a wholesale situation? What's best way to close the deal and to resell the property? I understand subject to reassignment to an investor but what about wholesale to a retail buyer? Would I close on the property with transactional funding then sell to a buyer? Do you use a traditional sales agreement or still use a wholesale reassignment contract to resell to a retail buyer? And what potential issues could arise: I remember reading how reassignment can potentially trigger the loan to  be called do? But i assume if money was owed something would have to be worked out with the bank anyway. Other potential issues? Thanks for your input.