All Forum Posts by: Eric Cybulski

Thanks.  I will keep searching.

What are your thoughts on the importance of having a CPA in my home state vs remote?  

My CPA recently passed away and I am looking for a CPA moving forward. I have rental properties in MN and NV and we are currently looking into the STR market.

I have reached out to a couple of CPAs here on BP, but I have not gotten any responses.  

Any guidance / advice/ recommendations would be great appreciated as tax season is quickly approaching.

Thanks

Sorry to hear about your current situation.  I have began to listen to that same podcast and based on the current situation where is there a good, reliable place / source to get educated on notes?  I am excited to start down this path, but when I hear of these types of situations I naturally hesitate to jump in.  Additionally, I want to start small and invest in a piece of a note, so I can learn the process and protect myself just in case the situation goes bad.

 Perfect, that makes total sense.

So in this example for a 1031 Exchange I would need to purchase a property greater than $151k and I should make sure that I have at least $30k to $37.5k (20% to 25%) equity in the original property so that it can be rolled into the next property without causing any lending issue correct?

Valid point on increasing the debt service amount.  Over the years we have paid in a lot more than the minimum.  The goal would be to calculate the amount of cash we could pull out that would leave the monthly payment slightly less than the current amount

I agree with your father Carl.  I was looking for some extreme.  The big variable here is that I can reduce my int rate and gain access to capital vs the equity line only gives me capital.

Here is the situation. I have an investment property worth about 150k and a loan for slightly less than 50k. The property is currently financed at 5.125% int rate.  I am considering doing a refi to lower the rate and pull out some equity as well.  My question is how does the cash out work for tax purposes if the property is considered investment for the following situations?  1) If the cash out is used to improve the property?  2) Use the cash to purchase another investment property?  3) Use the money for something else, like a vacation, car, or going to Las Vegas?  4) Down the road if I were to do a 1031 exchange to purchase a larger property would this event matter?

Eric

@Blake Eller

I couple things I wish I knew before I invested was

1) Focus more on cash flow vs appreciation

2) Assume the expense of using a property management company in your cash flow calculations

3) Have any exit plan

@Dan Deppen

Thank you for the information. Going the performing route seems to be the best starting option. I have read Real Estate Note Investing by Dave Van Horn and have been listening to Bigger Pockets, as well as a couple other podcasts specific to notes. Is there a specific class or training session that you would recommend?

Thanks