All Forum Posts by: Ike Mouser

I am at the point now where I have learned as much as I can by myself and I was about to pull the trigger on heavily investing in a mentor so that I can begin investing with the proper support however I came across this article:

https://www.rtitlegroup.com/bl...

My strategy was going to be to acquire SFH's with owner financing and sell them on a wrap, making money on the down payment, interest spread and monthly payment spread. If what I read in the above article is accurate it would seem that is impossible in my state of kentucky, would that apply even if I'm using an RMLO, attorneys, etc. I was specifically studying Grant Kemp and Mitch Stephen but now I think all of that may have been for nothing. I am attracted to this strategy because even though it likely cashflow less than rentals in the short term it would essentially allow me to close one property, get a decent cash flow/downpayment and forget about it putting all my effort into finding the next deal as the bank not the landlord.

and here is the law:

https://apps.legislature.ky.go...

Bump

I was considering becoming an expert in wrapping SFH's as my start in RE, but have a few questions? Typical rental income is usually not taxable when all deductions are accounted for. Given that wraps dont have the benefit of all of these deductions, a typical wrap providing me say 5% interest and $350 a month looks way less appealing when the $350 is taxed at 42% ordinary income level.

I like the idea of wraps because once you complete the deal you are 100% free to move on, mostly forget about it and acquire more wraps.  With SF/MF rentals a major issue (roof, foundation, plumbing) could wipeout your profitability for a long time and your time will be consumed with dealing with tenants, toilets, trash, maintenance, etc.(even with property management you will still have to pay and check up routinely)  Whereas the wrap income is guaranteed, the downside being taxes paid on wrap income and inflation vs the wrap income over the life of the note.

Also I want to do a 1031 exchange on the 4plex so I would have to transfer to conventional, but would that even work since you cant do 1031 exchanges on a property you lived in?

I am purchasing a 4plex with an FHA loan. The loan stipulates I will need to live in one unit. If its occupied to I kick the tenant out or wait until one of their leases expires? Also with regard to rehabbing the place, how can I rehab the interior if they are still living in it?

I am looking at purchasing a 4plex that needs light-moderate rehab as my first property. I am purchasing it with an FHA loan. I will live in 1 unit and rent out the other 3. The FHA loan stipulates that I must own it for a year and a day before I can sell it. I should have it fixed up rather quickly with regard to that timeline and would want to sell it post cash flow and rehab sooner than a year. How much would it cost me to get out of the FHA loan and into a conventional loan so that I could sell sooner than a year and a day?

I will be doing all of this inside an LLC which I've already set up and I know I'll have to hire an accountant soon as well.

Hi everyone! I am elated to be a part of such a community. I am taking my first steps in real estate to get me out of the rat race. I'm 33, a manufacturing manager and have been cramming real estate books and podcasts for a few months.

Please critique my plan:

1. Find a GOOD DEAL on a 4plex using an FHA loan (leaning toward fha 203k so I can bundle in repair costs so that when I go to sell the property in a year or so I will see a nice profit). Per FHA guidelines I will have to live in the complex for a year. 4 plex because I will gain the most cash flow from this scenario(3 checks).

2. Next step after getting the place fixed up and fully rented is to get it reappraised and then sell it via 1031 and roll all the profits into the next deal and pay off the fha loan in the process. I will have to refi out of the fha into a conventional before I can utilize the 1031.

3. Essentially live in the 45/180 window and continually do 1031's with added leverage and increased profits to continue to grow and put have more rental properties.

I want to have as much cash flow as I can each month and use that and opm to grow.

I learned today that there is a 10 mortgage limit per person/llc. Do most of you use a 1031 in this case when you hit the limit? I would assume that if you have multi family apartments that the property would be considered 1 mortgage since you have one loan.

@Ryan Enk Are you concerned about variable interest rates?