All Forum Posts by: Account Closed

I have been in these markets for the last eight years. I personally think they are the best markets in the Bay Area.

No rent control. Still affordable housing and plenty of room to grow. Pittsburg has changed drastically last five years. Check out its downtown. Definitely no Santa Row but still a decent place to get food. Much more safe than in the past and if you are not living there so who really cares. 

Antioch is just starting to really change last two years. Antioch six - years ago was a train wreck. Doing a flip good odds you would have trespassers. But property crime is way down. Freeway and roads have been pretty much all cleaned up. Home prices are up 300% since 2009. From an investment perspective you would of done better buying ten single family homes for a million in this market in 2009 than a 1 million dollar house in SF. People are getting pushed out from more desirable areas to East County. With bart coming in should help even more. It's really the last affordable place in the Bay Area that you can still get a 2000 sq. ft house to buy and the last place where working families can afford rent. Just my two cents.. 

Chris & Brian,

Appreciate the responses I actually understand Fannie/Freddie almost to well... Been doing this a long time.. We own to many homes with loans that's why Fannie and Freddie won't touch us..

 I just can't but again just trying to get an answer to my question..

over the limit for cash out refi. I have tried with three different brokers and two banks these are only options.

Long story short I don't qualify for a 30 yr fix product through Fannie or Freddie. So my only choice is a portfolio loan at 4.65 fixed for 7 years fixed 30 year loan P&I included but with closing costs of $10,000. YEP ABSOLUTELY RIDICULOUS. 70% loan to value. Obviously this includes property taxes insurance etc.. but yeah a train wreck.  

Or I can take a deal I have with a private bank I use its a Home Equity line of credit MAX LTV 60% instead of the 70% above and I only have to pay $1500 total in closing costs. Rate is 5% and tied to prime. So if rates go up this dramatically increases.

The loan would be $350,000

Like to hear people's thoughts..

I closed my LLC last year do to the annoying $1800 a year I was paying California.

But I still would like to avoid the 3 1/2 California tax fee if you sell a property within a year.

Would it make sense to just open a Limited partnership with my business partner so we don't pay the tax upfront on our flips or does someone have another or better idea? We only do about two flips a year now so it's not justifying the LLC fee either.

Thanks

Can you 1031 exchange a property owned by your LLC into two properties you own personally. example below

Steve & Matt are partners on a 4plex. They change title of there 4plex to their LLC

Than they 1031 exchange there 4 plex now under the LLC name to two rentals they own together under there personal names.

They would now have ownership of there two rentals homes as the LLC? Is this allowed I know a little complicated.

My business partner bought a fourplex. Originally purchased in May 2012. We added myself to title in July 2012. Took myself off last month. He plans to sell this property to 1031 exchange this property into two single family homes. One of these homes I already own that is rented out. Can he exchange into the property I already own even though at one point I was on title of the property he is exchanging?

Easy rule of thumb that I like. Set up LLC if you are going to flip. Set up LLC if you are going to have houses paid off. Otherwise it makes no sense to have an LLC.

Buy Business that have absentee owner. Or get a diversified mutual fund set up(very diversified) Or simply put it in VWELX. Last one is what I would do if not using the money for real estate.