All Forum Posts by: Jack Szalasny

Brady, If you're using your VA, I recommend two things. Number 1, consider going the max amount of $766.550, the reason being your potential rent income will be that much higher. Number 2, whether or not you have a VA disability rating, check with the Texas Veterans Land Board VLG.texas.gov for information on your VA loan, you may get a below-market rate. Wishing you the best in your search.

Peter, Normally, I would advise against an FHA Loan, but with about 4% total out of pocket for down payment/closing versus the 20% conventional, you can get at least a $550K mortgage for a three unit, and over $685K for a fourplex in the DFW area. These higher priced properties should equate to significantly higher rental income on the other tow or three units, respectively. Keep in mind, you'll be paying a hefty FHA Mortgage Insurance Premium (MIP) in your monthly payment, but if the numbers work, you may find better cash flow with a higher-priced multi-unit when you take into consideration the rental part of the MIP should be tax-deductible, reducing its actual impact significantly. Plus, if interest rates stay low enough and property values continue to increase, you may be able to refi in a year or two conventional and really get a great return.

We used an FHA loan for a condo in Baltimore years ago when my wife went through her residency there. It's now a great cash-flowing property that we'll have paid off in 16 years versus the 30 just by paying all the profit into extra principal.

@Alice Huang I am in the Austin area and I'm doing two rehabs in San Antonio, one is a killer deal that I most likely will BRRRR and the other after rehab take my money for my next property. I sense this current "not quite hysteria" we're experiencing will taper off soon, but if not, I don't see it lasting indefinitely. I'm curious what zip code your property is in?

Joe,  Recommended by a fellow investor:

You are looking for Trinae Rose with AccountAbility for Business. Best in the biz.

Good luck, Jack

Andres. are you looking for general contractors, handymen, specialists?  

Jennie, as a resident of Williamson County, make sure the real estate taxes don't include any exemptions such as homestead, disabled veteran, or senior citizen (I think I got them all).   Often times these are overlooked when doing a quick analysis.   

Tamara, My question concerns the $450,000 valuation. Is that a tax assessment, an as-is appraisal, or a real estate agent's CMA? All three are different. You say the property looked sad when you bought it, have you done any improvements? How long have you owned it? It sounds like over a year, so you're at least looking at long-term capital gains if you sell it, which is more favorable than short-term. It sounds like you're more geared toward buy and hold, and I agree overall with the majority of posters that you should most likely sell it and put the profit into a more cash-generating rental. Also, look into a 1031 exchange if you do sell the property, whereby you can defer any capital gains at time of sale. It sounds like you may qualify. Best of luck!

Ray,  Have you been active in any of the local real estate investor meet-ups?  There's almost at least one every day of the week.  I try to get to at least one a week, preferably two or three.   Jack

Bryan,  Just to clarify, this is your own personal residence, and you meet all the requirements for the $250K (or $500K if married) exclusion?  

I've seen it done where the LLC ownership transfers to the new end-buyer (actully end-owner of the LLC), so the REO asset management company selling the property on behalf of the foreclosure bank is still selling the property to "Acme Investments LLC" but there are different owners of the LLC. As far as how to sell the LLC to the end buyer/owner, I would use an attorney to be sure all i's are dotted and t's crossed.