All Forum Posts by: Garrett Hollenbach

Hello BP, 

I want to 1031 exchange a Long Term Rental Property into a Beach Condo. I want to buy the Beach Condo as a 2nd Home so I can get a lower down payment. Can I 1031 Exchange a Rental into a 2nd Home? 

Reason for Question: 

I have enough equity (without paying cap gain tax) in my rental for a 10% downpayment on a specific beach condo I want, but I don't have enough equity for a 20-25% downpayment on that same specific beach condo I want. If I simply sell my rental and pay cap gains tax, I will not have enough cash for a 10% downpayment on that beach condo I want. Hence my question above. 

Thanks 

Hello BP community, 

Here is my scenario: 

1. I purchase a condo as a "second home" with a 10% downpayment

2. live in it for 2 weeks out of the year (as stated by law where I live)

3. Then rent it as a STR for the remainder of the year and turn a solid profit of 10k.

When I apply for a new loan for my next condo, does the income from the first condo (10k stated above) factor in to my Debt to income ratio? Or, because I purchased it as a "second home" and not an investment property, are those profits, on paper, null and void? 

Thanks! 

For LTR the general rule I learned was to save 10% of Rental Income for CapX and 5% for Maintenance and Repairs. What is the general rule for STR?

You have to pay for broken TVs, new towels, etc. so I wondered if it was different? 

Hello BP community! 

What are some websites/services that allow you to plug in specific characteristics of desired properties (for example, "I want to see a list of all properties in ______ area that are only 3 bed, 2 bath, 1000-1200 sq ft and owned by LLCs) and you are given a report of those properties. 

I know you typically have to pay for these services. I'm okay with that! Anyone know of any good ones? 

Thanks, 

Garrett

My tenant called and said "we have cockroaches, can you call a pest controller?" 

I obviously want them gone...but who should pay? 

Hello BP community! 

In a few months I'm planning on selling one of my properties and will have some cash to play with. I'm interested in STR.

Question: What are the differences/pros/cons between single family homes (that are like, 10-20 minutes from the beach) and beach condos (that are a mile or less from the beach) if you want to rent them out on Airbnb/vrbo/etc.? 

I'm assuming you have to furnish SFH yourself? Whereas condos you may not have to when you buy them? Any other differences/pros/cons?

Thanks! 

 

Thanks man! 

Hello BP! 

I have about $148,000 left on a mortgage for one of my rentals. It is worth roughly $240k (so about 80-90k in equity). 

Refinancing and renting is not an option (I would be way below the 1% rule in my market). 

Should I sell or continue to rent? Here are the quick numbers: 

Sell: 80k-90k in non-taxed cash (I lived there four years before I rented it out). 

Hold: $175 per month is pure cash flow

Which would you do? 

Thanks,

Garrett

Hello BP Community, 

I'm struggling to find accurate and consistent comps when trying to analyze SFH or MFH. Prices in the particular market I'm looking in are all over the place. Because of this I'm having such a hard time with figuring out the ARV when I analyze. Any suggestions?

Thanks 

Hello BP, 

I know they say $150-$200 per month in positive cashflow for SFH is considered good. What is a good number for positive cashflow for an Air BnB? $100 per month? $400 per month?

Thanks! 

Garrett