All Forum Posts by: Ian Russell

Hi I have a property in San Jose California that I bought in 2011.  It was my primary residence until last year when a job took me out of state.  I still own the property but it is now a rental.  I have rented it out for one year.  I thought there may have been something that states if you live in a property for two years or more you get some kind of tax break?  I think now that its a rental house this may now not be the case?   Anyways I purchased the property for 388,000 and its now around 850,000.  Im thinking of selling it but wanted to know about the tax implications first.  Your feedback would be appreciated.

thanks

Ian

I had previously posted about needing some advice on my multi family properties and got a lot of good feedback.  I had a few people mention that I am not using the equity in one of my rental to my advantage and wanted to get some tips on what to do here.  I think I may have made a mistake by using my own money on purchasing two triplexes this month when I could have possibly done a heloc loan and used that money to purchase these units.      

Here is the back story. I bought a town home in San Jose California for 388,000 in 2012. It has appreciated to around 840,000. My mortgage including taxes and insurance is a little below 2000 per month. I have it rented for 3200 so a profit of about 1200 per month. I just bought two triplexes in Washington state for 230,000 each and each unit is fully occupied at 800 per door. So 2400 is coming in on each triplex per month. After talking with someone this is where I believe I should have done something else. I am putting 25% down on each triplex which is coming from my own money. Basically I am writing a check for about 125,000 for both of them. My friend was telling me that I should have leveraged equity from my house in San Jose and used that money in the form of a HELOC to buy the triplexes? Was this what I should have done? Is it to late to do this? Any other ideas? I don't want to sell my house in San Jose as I might move back there someday and it has a 3% interest rate. Would love to here so advice.

thanks

Ian

Thanks Thomas  the 6 duplexes have all appreciated between 75,000 and 100,000 my goal was to pay them all off using the rents collected and hopefully have them free and clear in about 12-15 years.   I only owe 30,000 more on the second one that I purchased which would give me about another 800-900 dollars a month cashflow.   Once all of them are paid off I should be around 8000 or 9000 per month and still have all of my properties.  thoughts?

Ian

Thanks Joe and Ron

Yeah the house in San Jose, Ca was bought in 2012   I bought it for 388,000 and put about 80,000 down.  I owe about 285,000 on it now.  I lived in the house since 2012 and moved last year to Reno.  The mortgage is 2100 per month with taxes and insurance included in the mortgage.    The house value is 840,000  I think the market will slow down but I may eventually move back so I don't really want to sell the house.  Would you recommend pulling some money out of the property and buying something else?

thanks

Ian 

Would love to get some advice on what I should do next in regards to purchasing more properties or selling what I have now. Im 42 years old and got hammered in the real estate crash in 2010 I had some investment properties that I had to shortsale in 2011. I began buying again in 2013. My first purchase was a duplex in Washington State for all cash in 2013. I was unable to get a loan so I had to do an all cash purchase. I have since bought 5 more duplexes for an average price of around 150,000-180,000 dollars. All of these are located in the pacific northwest. I recently had to relocate to Nevada for a new job and now have rented out my primary residence which is in San Jose California. I bought it in 2013 as a foreclosure and have about 400,000 in equity in the house and am positive 1000 dollars in rent per month. I recently bought a house in Nevada which is my primary home. My question is what to do next? I will list what my mortgages are for my duplexes and how much is coming in. Should I try and buy more duplexes? The areas where I was buying have appreciated a lot and the deals are just not very good anymore. I have been trying to take all of the rent money from all the duplexes and pay them off one at a time. Would love to get some ideas on what I should do.

Duplex 1 paid all cash 122,000 is now roughly 180,000 not a very good duplex,old and just a decent neighborhood. rent is 800 per side. 1600 total. take home is usually around 1100 a month, taxes,insurance, prop management,water sewer and repairs

Duplex 2 150,000 Put 50,000 down have been trying to pay this one off using the other rent money from the other properties. I owe 47,000 on this one. total rent is 1900 per month mortgage is 850 with taxes and insurance included usually around 400-500 month profit unless a big expense happens This one has appreciated to about 250,000

Duplex 3 The rest 3,4,5, and6 are all very similar to duplex 2 around 150,000 give or take about 50,0000 down rents between 1700, and 1950 per unit. Mortgage with taxes and insurance 800-900 dollars per month. Usually take home 400 per duplex

Duplex 4

Duplex 5

Duplex 6

House Rental 7 This was my San Jose Primary residence Had to relocate for work. Bought in 2013 for 388,000 it was a foreclosure put 88,000 down and owe around 283,000 its worth around 800,000 mortgage is 2200 with taxes, insurance and get 3200 in rent money.

Primary residence in Nevada just purchased house for 375,000 and put around 60,000 down

Recap

Duplex 1 paid all cash positive 1100

Duplex 2-6 positive average 300-500 a month= 2400 positive on units if none are vacant

House rental in San Jose positive 1000 per month

So on a really good month if there are no vacancies and no problems which rarely seems to happen I am positive cash flow around 4700 per month. It seems on average its usually 2800- 3800 positive. Any advice on what I should be doing? Should I continue to pay off each duplex? Sell some and do a 1031 exchange and get bigger units? Buy more even though the market is way to hot? Refinance the one that is almost paid off and take money out to invest with? I dont want to refinance my house in San Jose since my interest rate is 3% I do have good equity in the house though. Would love to get some advice. thanks

Ian

Would love to get some advice on what I should do next in regards to purchasing more properties or selling what I have now.  Im 42 years old and got hammered in the real estate crash in 2010 I had some investment properties that I had to shortsale in 2011.   I began buying again in 2013.  My first purchase was a duplex in Washington State for all cash in 2013.  I was unable to get a loan so I had to do an all cash purchase.  I have since bought 5 more duplexes for an average price of around 150,000-180,000 dollars.  All of these are located in the pacific northwest.  I recently had to relocate to Nevada for a new job and now have rented out my primary residence which is in San Jose California.  I bought it in 2013 as a foreclosure and have about 400,000 in equity in the house and am positive 1000 dollars in rent per month.  I recently bought a house in Nevada which is my primary home.  My question is what to do next?  I will list what my mortgage are for my duplexes and how much is coming in.  Should I try and buy more duplexes?  The areas where I was buying have appreciated a lot and the deals are just not very good anymore.  I have been trying to take all of the rent money from all the duplexes and pay them off one at a time.   Would love to get some ideas on what I should do.

Duplex 1   paid all cash 122,000        is now roughly 180,000   not a very good duplex,old and just a decent neighborhood.  rent is 800 per side.  1600 total.  take home is usually around 1100 a month,   taxes,insurance, prop management,water sewer and repairs

Duplex 2  150,000   Put 50,000 down  have been trying to pay this one off using the other rent money from the other properties.  I owe 47,000 on this one.   total rent is 1900 per month  mortgage is 850 with taxes and insurance included  usually around 400-500 month profit unless a big expense happens    This one has appreciated to about 250,000

Duplex 3    The rest 3,4,5, and6  are all very similar to duplex 2   around 150,000 give or take  about 50,0000 down  rents between 1700, and 1950 per unit.  Mortgage with taxes and insurance 800-900 dollars per month.  Usually take home 400 per  duplex

Duplex 4

Duplex 5

Duplex 6

House Rental 7   This was my San Jose Primary residence  Had to relocate for work.  Bought in 2013 for 388,000 it was a foreclosure put 88,000 down and owe around 283,000   its worth around 800,000    mortgage is 2200 with taxes, insurance   and get 3200 in rent money.

Primary residence  in Nevada just purchased house for 375,000 and put around 60,000 down

Recap

Duplex 1   positive 1100

Duplex 2-6 positive average 300-500 a month=  2400 positive on units if none are vacant

House rental in San Jose positive 1000 per month

So on a really good month if there are no vacancies and no problems which rarely seems to happen I am positive cash flow around 4700 per month.  It seems on average its usually 2800- 3800 positive.      Any advice on what I should be doing?  Should I continue to pay off each duplex?  Buy more even though the market is way to hot?  Refinance the one that is almost paid off and take money out to invest with?   I dont want to refinance my house in San Jose since my interest rate is 3%   I do have good equity in the house though.   Would love to get some advice.  thanks

Ian