All Forum Posts by: Jake Pham

I saw a pretty good opportunity in San Diego. It is a mixed zone lot, currently has a commercial property(1200sqft) in the front and a house in the back (900 sqft). 

My end goal for this would be build 2 more rental units(600sqft each) on top of the commercial space and have it as a rental. Also rent out the commercial space in the front. 

Right now with Covid its pretty difficult to get an commercial investment loan due to the commercial space is not making any money, however the house in the back is rented out for $1550, which cover more than half the mortgage but not good enough to get investment loan.

I was thinking about getting an owner occupied commercial loan, maybe starting a business in the commercial space and eventually build on top, however as it being owner occupied, i have to own 51% of the property. If i build 1200 sqft for the 2 units on top and with the existing house in the back 900 sqft rented out. That mean i would only occupied the 1200 sqft commercial space which failed the 51% owner occupied requirement.

Anyone have any creative ways? Maybe my business can sublease the commercial space later on ? Or I can refinance to another loan ? Also if anyone is a commercial lender for San Diego please let me know.

@James Storey

Thank you James for your post. This is my first property so I never thought of refinancing, I will take a look into that for the next home.

Jake Pham

@Bill Brandt

Hi Bill,

The reason why Im selling it because, even though it has rented out for 2.5 years with no gap. I barely making cash flow due to the repairs, Chicago high property tax rate. I didn't actually making much money. That is why I was thinking about selling it and buying another property since the property more than double in value.

This is my first post on BiggerPockets, I been reading around for advice but have have a question so I decided to post, please help me out :)

Im in a little bit of dilemma. I bought an investment home in Chicago for 40K around 2.5 years because I got such a good deal, the rent for that is $1200 a month. Now Im currently in escrow and have a buyer that willing to buy it for 92K and it is paid off.

My dilemma is if I sold this property should I do a 1031 exchange and buy another one? Or save cash and pay Uncle Sam?

I been reading and a lot of people are saying keep the cash because in the next couple months there will be more layoff and the housing market will drop, however if I keep the cash then I have to pay 15% tax. Should I not do a 1031 exchange, pay tax and keep the cash ?

My property suppose to close the first week of June and I would need to identify properties within 45 days then purchase them within 180 days. I been looking in to Kansas City, MO with a real estate agent and found a 4 units for around 235k and rent is $2600 a month. With a down payment of 90k. After mortgage and expenses, i will pocket around $734 a month. What should I do ?