All Forum Posts by: Dustin McClure

I know a crystal ball is priceless; but I wanted to report back that the home value has gone up about 100k since I originally posted this. Now if I could just cash out with out capital gains.

We were accidently land lords - a relocation from work had us renting out our home. I am now considering doing a 1031 exchange to accomplish a few things:

1. My cashflow has trickeled to almost nothing due to increased tax burden. I would like to cash out and invest the proceeds to increase the cash flow.

2. Selling the property will allow me to establish full VA funding eligibility again.

How do I find my next property? The real estate market is crazy right now - which is good for selling and not so good for buying. Is there a good rule to estimate rental income on new property? Any other advice?

I have a home listed for sale/rent in a slow market in West Texas. List price is $269,000 or rental of $2,300 month. I am at the top of the market for this location. I owe around $240,000 on it. All realtor/property management fees are being paid by my company due to relocation.

Received following offer today for Lease to Purchase:

10% down

15 year note (goal to refinance in a year)

Payment from $2,200 to $3,000 monthly.

My thinking is in order for this to make sense to me I need $3,000 a month. Of that $3,000 $2,400 would go to the bank and I would pocket $600 a month plus the downpayment.

I would rather the couple just lease the property at $2,300. If I decide to sell they would get the first option. 

Overall, my concerns are that if my mortgage lender learned what I was doing they could accelerate the note; which would put me in a financial bind. I do not know if the acceleration clause is in the contract I signed. 

What are other concerns that I haven't thought of? What would you do?

@Samir Goel which credit bureaus are you reporting to and at what cost to the landlord?

@Samir which credit bureaus are you reporting to and at what cost to the landlord?

@Joshua Lidberg So It is for sale as well as lease. Part of my thought process behind leasing it is appreciation though

We bought the house for $245k. The builder has since increased the base floor plan to $265k. My monthly payment is $1,600 with tax and insurance. We moved in with $100 down on a VA loan. The PM expects it to rent for $2,000-$2,500 with my company paying the PM fees for 3 years.

Right now, I am directly competing with the builder if I sell. In 3 years the house may appreciate more.

Does the math check out in your opinion?

@Domenick T. My type of rental is high end. There are not many comps- especially in my neighborhood. We built the largest house on the largest property in a brand new neighborhood. It was meant to be a forever home. The finishes are similar to other comps except for it’s a full smart home.

Good morning,

I relocated for work and have listed my old house for lease/sale.

My relocation includes all real estate fees; including property management. The only issue I have is my home is near the top of the rental market.

I do have a signed agreement with a management company and have faith that we are on the same page about strategies and such.

I am thinking about opening a second checking account with a different financial institution for all things rental. Is there anything else I should do?

I’ve wanted to get into rentals for a long time but not necessarily at this price point so I am a bit nervous now that I have skin in the game!