All Forum Posts by: Kenneth LaVoie

@Dave Foster ... I did NOT know that! So ... really stretching here .... sell 1.2M worth of free and clear multi's here. Parlay into 1.2 in FLA for example. Stay home or rent in FLA for a year, THEN move into the "owner's unit" level rez in the 1.2M portfolio we bought a year ago. Can then sell our PR here (or leave for visits if so inclined) but either way we forego the CG. I like it ... that "one year" wait adds a little twist I hadn't thought of!

@Dave Foster checking out your website now!

I'm hoping based on the opinion of an associate (former CFO of The Health Care REIT and current financial manager for a family office in Manhattan), that Biden's elimination of step up in basis and 1031 won't fly as the entire global Re business pretty much "survives" based on these two allowances. It would be like eliminating social security out of the blue in its trickle down effects.

But...doesn't mean it cant happen! 

With the 1031, I lOVE the idealistic idea of buying some great rental properties in Southern Fla, but I'm thinking that with the 1031, I can't sell a multi unit and parlay it into anything I live in... but I suppose selling 1.2M rental properties, buying 400K ocean front condo and parlaying or 1031'ing the remaining 800K into 1.2M rental property in FLA would at least get me part of the way. (or put entire 1.2 into 2M rental prop, sell PR, put THAT into OF condo...) Lots of options ... lots of options. Thanks to all of you so far!!

So...this is a question I need to ask because there's so much "noise" about apartment buildings soaring, "highest prices in a gazillion years, if you don't sell now you'll be left behind, blah blah blah!"

So we have four buildings left...two 7 units and two 4 units, within 2 miles of each other. NOI around 100-110K, no mortgages. SOME updates and upgrades needed but nothing hideous. 100+ year old buildings (that's all there is in Waterville Maine, besides what Colby College is building). Hard to say what we could get. On my sales page realestateme.com I've got them listed for 1.4 but it's possible they could only go for 1M when all is said and done. 

My gut tells me, Keep em' forever. We've already sold more than half our buildings, and have a nest egg that will give us 80% of our living expenses if we retired now, and our buildings give us 120% of our living expenses, (so 200% total needs met). That's a "normal" middle of the road lifestyle. Every dollar that is in our RE earns us about 10%. If we pull it out, where do we put it? We could 1031 into a DST like 1031exchange.com offers, OR just pay the tax and be done with it and plunk it into a 40/40/20 stock bond REIT/alternative portfolio.

I think the reason I hem and haw over it is because it really doesn't matter ... either way I go is pretty good. Love to hear somethign I haven't thought of though!! 

So..

1. Keep, enjoy, pass on to daughter, let her sell them or keep them

2. Sell, take the hit, put into market

3. Keep, cash out REFI, live "high on hog", pass on to daughter (sell, pay off mortgages, etc.)

4. Sell, do 1031X into ...? We want to live in warm climate but still have access here in Maine for family

Thanks all! first world problems!

@Daniel Baker. I wish I could be of more help! I'm really only familiar with my own stomping ground, Waterville/Winslow and a little bit in Augusta. Augusta is an easy drive to Boothbay though, (1 hour), and Wiscasset actually might be what you want. It's semi coastal, it's where the famous "Red's Eats" lobster roll shack is, lots to do. Lincolnville is one coastal stop from Camden I believe. Also Windsor might be good (not coastal but central).

Thanks Bethany! Always glad to chat about Waterville. I'd have to defer to Brett Brockway as being more knowledgeable. He's younger and hungrier and is doing a lot right now and can offer some great perspective. 

I'll have to defend the 19-year-old liberal student comment that I made. I wasn't trying to be insulting, but the wording of her bill is such that it could frankly end the rental real estate business almost overnight. I almost think this post and just about any comment that could come out of it would be relevant to real estate. I mean it's all about a representative who submitting a bill that gives all of our tenants 10% equity in our buildings and completely ceases our income for a year without recourse. Frankly I'm not sure any of us should be held to acting like an adult in the face of such a thing haha!

I currently have two seller financed notes. One is a first mortgage with four years aging, two years left on a six-year balloon, for a hundred percent of the purchase price of a small property. The second note I have represents 15 to 20% of the value of the property I sold, and I'm about to receive the first payment on it. Both are 6-year balloons with 30-year amortization. My question is, these two notes represent approximately 10% of our financial portfolio. I don't like the concentration. I would much rather own 25 notes than two. Has anyone had similar thoughts, or are there companies out there that facilitate such a thing. Obviously due diligence is the phrase of the day but I'm a diversification nut, and stuff like this keeps me up at night! Love to hear your thoughts.

***It was a 7 unit building by the way, grossing 61K annually. It was great timing in a way because we cash flowed 43K out of 60~K gross 2020 "due to covid" (no repairs, super low oil, had just made some renovations and raised a couple of rents 25%)

I bought this building for 170K with 17K down in July 2011, and had losses first two years. Then profits straight through until selling yesterday 1-13 for 335K inc. 70K we are holding as seller financed note at 6.5% 30 year armot, 6 year balloon. Does the copy and pasted excel, using IRR function represent a pretty accurate view of my return? I am thinking that maybe I should combine first year's loss of 18~ with the down payment?? I included the 70K note with the 170K "walk away with" money.

Thanks for any feedback. Different ways I've tweaked this all come pretty close. Up to 41% down to 37 and I just want to be sure I'm on the right track.