All Forum Posts by: Eric Parrow

Out of curiosity, do the small-branch LOCAL banks there lend on investment properties in SC with 20yr AM and sub 5% rates?  Is that a think like it is in my home state (oklahoma)....?   

Can anyone recommend a bank that does that locally (if it exists) ?

@Alexander Knowles - thanks for the insight.  That concurs with everything I found when digging around.  This property in particular is owned by a friend, and when we dug down deep into his numbers, I discovered it really wasn't cash flowing for him.  Hes owned it for about 18yrs, and although hes nearly paid it off, it threw red flags on his rent rates.   His property manager tells him its rented at "market rates" but I suspected the property manager is out of touch with current rates, and/or lazy.  My recommendation for his situation was to refinance the property and pull 200k cash out or more, pay down some other debt, and use the remainder to upgrade the two vintage units, as well as purchase more property that cashflows.   My challenge was in making sure it still cashflows after a refi... 

I think he can seriously boost rents from the current total of $3650 closer to $5,000/month, maybe more.  The way the property is built, I think two of the units (upstairs and downstairs 1/1 and 2/1) would make great short term rentals while leaving the other three as long-term.  The concern there is more overhead with fees and utilities and taxes, but I think it could potentially boost revenue and really make the property work for him.

I'm evaluating the numbers on a 5-plex in Surfside Beach, and hoping someone from SC can provide some insight to the area.

I'm already aware of some oddities with costs (forced flood insurance, 3 hot water heaters provide hw for all 5 units, water is included in current rents etc).... the building is a combination of a 3/2, three 2/1, and 1/1, two story, 1960's build with a mostly flat roof.  Parking in front, and it takes up the end-lot (corner lot, roads on three sides).

Current owner is pulling in rents that I think are a bit low - 1200 for the 3/2, and about 600 for the 1/1, and around 750 for the 2/1 units.  

Looking on Zillow for rentals, I see only 1 unit for rent ($1200 for a 2/2), of any size or shape.  Moving out in a larger circle, only a handful (less than a dozen) in a several-mile radius.

In my market (OKC, and Pensacola FL), If I saw that I cold quickly assume there was a SEVERE lack of available units on the market, and that I could significantly raise rents.

Am I looking at this correctly, or is there something wrong with Surfside and surrounding sub-market that keeps people from listing long-term rentals on zillow, or is there a severe job shortage? . If so, it would seem like there would be a LOT of inventory on market, and low prices. 

@Dylan B. I probably should.  I know him - last time we spoke (a year ago) i got the feeling his services were over my pay grade... 

Bill, Thanks for the suggestion... I'm mainly looking to push the day-to-day maintenance of QB out to a book keeper so that I'm not fiddling with it myself. I have too much going on to keep up with it... I also need to be able to grow as I shift into larger MF investments next year

 Yes please!  I would welcome it.  Thanks!

OK I'm unlocked for messaging now... I'm swamped and need help with a book keeper.  Help!

I'm trying to find a book keeper to use, and set up Quickbooks for me... I have a small portfolio in two states (oklahoma and florida).

I tried messaging a few people I thought were accounting professionals and  Bigger pockets blocked me from messaging due to spamming.  I sent 3 messages. 
* Messaging unlocked now * looking for recommendations of who you've used, or if you're in the business, please message me!

Nobody has clarified if a business that produces both passive income from rentals AND income from Flips and Wholesale deals would qualify for Solo401k.  The income from the flips and wholesale deals are not passive are they? 

In regards to the Solo 401k, How does this apply to some of us that are holding rentals, wholesailing, and doing flips all in the same S-Corp, and paying ourselves a small salary? In my example, I'm 100% owner, and the only employee of the company. (an actual S-corp, not an LLC being taxed as an S-corp).

Next, What if you're holding rentals in an LLC, but have another LLC thats doing the wholesail deals?  Or what if you're selling things on Ebay regularly?  Would This would be a source of active income from business activity?

What if one LLC has several employees, but the other has none?  Can you still qualify for the Solo 401k?

And finally, on a Zoom meeting today as part of a nation-wide Asset-managment, week-long seminar, a "eQRP" provider mentioned being able to borrow $50k as a loan from the plan and pick your own interest rate.  He only covered high-level bullet points (left out a lot of detail), but is that a normal part of a Solo 401k plan?