All Forum Posts by: James Paine

@Sean Autry You mentioned you want a property manager that will charge a fair price but my opinion owning tons of rentals and formerly a property management company is that you should be concerened with value.

1 Vote

Originally posted by @Jack Butala:

Hello, Steven Butala, here. We buy and dozens to hundreds of properties per month and have done so since the late ‘90s.

Around 2005 I had a SQL relational database custom designed by some bright local guys to the tune of about $300K to ease the processing pain my staff was experiencing. We are still using it today and need a serious upgrade. The parcels are mostly rural vacant land.

Our software is in three separate modules

1) Manage the inbound acquisition inquires (CRMish) and the acquisition process.
2) During that time engineering completes maps and other graphics and files to get it ready to sell.
3) Then sale and then post sale payment management.

Do any of you folks use an out of the box program that brings you into the 21st century?

I did a lot of research and I’m finding a ton of property management and agent solutions but nothing stands out for high volume investors.

What does a REIT or Private Equity Group use for example?

Thanks in advance for your time.

I know that Colony/Waypoint/Starwood were all using a modified version of SalesForce to manage everything.

0 Votes

@Radhika M. - I have a ton of rentals in San Diego and bought most of them during the downturn. My opinion is that right now they don't work. I believe in cash flow not the guess at appreciation.

1 Vote

@Paul Gilo I like where you heads at! I own about 30 rental properties that cash flow and I rent 1 home that wouldn't cash flow. (The one I am renting for $3100/month that would cost me $6900/month PITI). Rent Bro! Buy a solid cash flowing deal if your primary isn't going to cash flow.

The one exception to my advice above is if you are starting a family or have a family and plan on staying in that neighborhood for years.

2 Votes

Nice site @Todd Burton I know putting those things together can be a long process.

0 Votes

Andy - If you don't have partners in the rentals then all mortgage payments flow to you as an expense and all rent flows to you as income. Personally, it seems like it is the best idea to just take out the highest interest rate loan first.

0 Votes

@Matt Long I really appreciate your goal. My goal is to get to $500/day in passive cash flow by the end of the year. That is a small goal to get to my goal of $1k/day. Personally, I have rentals all over but right now I am buying 100% in the suburbs around Chicago. Full disclosure I also sell turn-key properties there so I am a bit biased. Good luck!

0 Votes

Originally posted by @Russ Draper:

I'm selling my multiplexes, and I had the idea to save the capital gains tax and instead purchase a SFH that would be a short-term vacation rental. I remember the 1031 code saying something had to be similar to what you sold, has anyone done something like this before? I see some consolidation posts, but they are all for larger buildings, I was thinking of something like a luxury SFH that could be rented out on VRBO or Airbnb or something.

Has anyone gone so far as to purchase a new SFH as their primary residence and rent out rooms or something? Trying to think of how to qualify for 1031 in this type of scenario also.

I've got a couple AirBnB investments and the scary thing that we are facing is that towns are coming down on AirBnB and are trying to put regulations in place that would make the model much less attractive for investment. For example, San Diego is looking at having a minimum rental period of 7 days. If they did that I'd have to get out of my properties as they wouldn't cash flow as normal rentals.

0 Votes

@Matt Smith I've got a couple AirBnB investments and the scary thing that we are facing is that towns are coming down on AirBnB and are trying to put regulations in place that would make the model much less attractive for investment. For example, San Diego is looking at having a minimum rental period of 7 days. If they did that I'd have to get out of my properties as they wouldn't cash flow as normal rentals.

0 Votes

Originally posted by @Brendon DeSimone:

finishing up a big fix & flip and it's been less than 6 months and I'll get killed in taxes. Considering doing a 1031 into an affordable multi-family out of state (i'm in nyc metro area) that could be a good, solid long term investment for both cash flow and appreciation purposes. Need to spend in low $2M range for 1031. Thoughts on where to begin/look/options.

Thanks

I'm pretty sure you can not 1031 into the new deal. You have to show that you truly had intentions of buying and holding the first and second property long term. With that being said the great part of a 1031 should your CPA somehow feel comfortable getting you qualified then I'd look at a multifamily property and possibly a few high cash flow SFRs but hey I'm biast.

0 Votes

All Forum Posts by: James Paine

James Paine has started 15 posts and replied 133 times.

Post: Out of State Newbie

Post: What Software are you using?

Post: How's the SoCal rental market?

Post: Rent vs Buy dilema - need input from those that went through it..

Post: Check out our new website for nice Indianapolis turn-key rentals

Post: Pay which houses down first?

Post: Hello from SoCal

Post: Selling multiplexes and buying a vacation rental?

Post: 1031 to buy a Airbnb investment property

Post: Looking for options for first multi family