All Forum Posts by: Felipe Guerra

Hi everyone

I recently sold my 3 multifamily properties in San Diego CA -With the objective of doing a 1031 exchange; however there were some issues along the process that ended up taking more time than planned.

Currently I have about a week to identify properties for the 1031 -I been looking at properties in the SD location (not looking to invest out of southern CA) and have not been able to find something that makes sense (cash flow, location and property condition).

I've been feeling tempted to keep the cash ($1M) pay taxes and take my chances with the brrr method -I'm looking for your recommendation, what do you think ?

Thanks in advance !

Felipe

@Bill Exeter thank you for your reply -please let me know the best way to contact you.

@Katie Lepore I appreciate your help; yes please send CPA referrals. Thank you

@Bill Exeter thank you!

Hello BP panel,

I have a question about capital gain taxes -I recently sold my (3) multifamily properties, netting me about $500-$800k.

I started with the intention of conducting a 1031 exchange (still ongoing with escrow and exchange accommodator)

As I have not been able to find anything appealing in the current market (San Diego CA) I'm tempted in exploring the option of keeping my gains cash and look patiently for an opportunity.

However I'd have to pay taxes on my gains -could anyone recommend q strategy or an experienced CPA how can review my case to minimize tax payments.

Thank you in advance for your time -

Felipe

Paul Spradling thank you -I'm also looking to sell one of my San Diego, CA properties for about $400k liquid to invest -what areas would you recommend for good cash on cash % and overall market stability (out of state, no problem as long as the math is there) Thanks

Justin R. Thanks for your help -would you be able to provide the bank information you indicated you could recommend for a HELOC loan on an investment property.

Justin R. Thank you; that is truly excellent advice and I appreciate it -as per your first option I tried getting a HELOC loan and it was not approved as I hold a current investment property loan and the lender said that would only apply for owner occupied properties. Is that not the case

Justin R. Thank you for your reply -Since I have 1.2M in equity the idea would be to get a return on the equity as it is not generating a return right now.

Hello my name is Felipe and I'm new to big pockets -I want to get comments or investing ideas on the following. I bought my first multi-fam rental property in 2013 for $465k -I got a 30yr fix loan with 25% down. This property had a 20% cash on cash return since I bought it. I bough a 2nd rental on 2014 for $559k -again with an investment prop loan putting 25% down. This property had a 14% cash on cash return -lower because prices had increased. I bought a 3rd rental a duplex for $400k with same 25% down 30 yr loan -cash on cash return of 8% prices continued to climb therefore lower cash on cash return. At this point a have about $1.2M in equity and I was thinking on liquidating all properties to get the $1.2 and re-invest; however based on how much property cost has climbed I'm not able to get a good return on my investment; if I put the full $1.2M for a down payment the mortgage will be as high as my rents 2) if I buy cash a $1M property it would be around 7% cash on cash and would not get as much equity on property value (also I would not be able to use a 1031 exchange paying cash). Would you have advise on how could I re-invest my available cash or if I should just keep my properties as they are and keep saving for another downpayment or pay-down loans. Properties are located in San Diego CA and the Income I get after all expenses and prop manager fees is aprox $50k / yr. Please let me know if you can help and/or if I left out any information. Thank you! Felipe Guerra