All Forum Posts by: Javier Carrizosa

@Bill B.

I'm so slow at this, so, is it ok then say a net worth for that 200k property is 120k regardless of all I brought up?

I have a couple of properties that I've refinance in the past few years in order to buy more real state, shocker! How would trying to do a 1031 exchanges be affected on properties that have been refinanced? Or would it just be a normal 1031 transaction?

 Thanks for the insights! I don't know, lately I've been thinking if I would still want to be doing this whole landlord thing in the future and therefore trying to figure out if there was an tax convenient way of liquidating all rental properties and live off a brokerage portfolio. I know the properties would perform better but at the same time the headaches that come with it.

I'm just exploring what if scenarios at the moment.  I guess I really never thought how I would be dealing with the rental properties in say 20 years from now, or what is possible. Im missing a few chapters of rental investments, the after math! 

If you solely have rental properties as your investments, what plays might be the best for retirement? I currently manage all my properties and thats what is getting me burned out. I figure for now I would self manage sense I've had bad experiences with PM, one, being very slow at getting things resolved and two, the contractors they usually get seem to charge the highest rates possible!

So the main definition of net worth to my knowledge is, after selling all assets minus liabilities you get your net worth. 
I believe a lot of times when we try and do a quick net worth calculation for an investment property we think, 

Example:
Rental A it’s worth 200k, I bought it at 100k and own 80k. So it would seem my net worth is 120k right? But isn’t that really wrong?

If on average, selling a property costs about 8% So then we would have:

200k-8% = 184k - 80 (mortgage) = 104k

But, let’s say the property was a long term holding so capital gains taxes due on it are 15% (assuming no state taxes in Florida  

So our capital gain was 100k and 15% is 15k due in taxes!

So we have a networth so far of:

104k - 15k = 89k

But, we depreciated the property for 2 years at 3.7k/yr total 7.4K taxable amount  which we would owe about 1.8k at 25% tax rate (I might be off a bit here and there)

Final total net worth from what we thought it was 120k now is 87.1k which is a big difference!

Is this something most of us neglect or do not think about?

On my spreadsheets I’ve always deducted 8% (sell costs)  from the actual equity on my properties but I haven’t thought about all the grainy details until now!

What do you guys think as far as calculating net worth on investment properties?

Hi guys I have to questions that I need help with,

I currently have 7 home portfolio, they are all nicely rented out. I have equity I would like to tap out of my primary home. I've gone to a few big banks such as PNC, etc, but they all have told me they can't do a HELOC because of my debt to income ratio is maxed out. I was wondering what other means or institutions can help me out in order to use the equity on my primary home. Refinance is out of the question because interest rates at the moment.

Also on that same note, what would be the best way to offload a few of the houses into an LLC in order to free up my debt to income ratio?

Thanks!

Javier.

Great thanks for the tips guys. I would imagine that one could refinance my current mortgages into the LLC using the same DSCR loans? Or is there a better way of approaching that?

Thanks again!

Hello!

I've been working hard to build my rental property portfolio. But I'm currently at a dead end! I currently have 7 rental property mortgages, all Cash flowing decently and with some equity on them. The thing is that apparently I'm maxed out on my debt to income ratio and therefore cannot get any further conventional loans. I even tried recently getting a HELOC and it was a no go even though my credit score is in the 800s and the reason was also debt to income ratio.

My question is where can I go from here to keep growing?

One idea is to set up an LLC and put some of my rentals under that in order to build credit overtime. I believe I would have to wait around two years for the LLC to qualify for commercial loans. If I go this route, would I just transfer the property titles to the LLC? Seems like all I could do, and then somehow refinance/sell the property into the LLC down the road?

I would like to get the LLC started for sure but don't necessarily want to wait 2 years in order to acquire more properties.

I appreciate any ideas/strategies!

Hello there,

I'm looking for help creating maybe a couple of LLCs for my rental properties in Tampa and making sure things are setup correctly and maybe even create an s Corporation to start holding such LLCs.  

Thanks!

Javier.