All Forum Posts by: Jack Barkow

@Gino Barbaro The 25k was in 2018 in C class.  Good times, but I look back on all the deals I turned down for misc reasons and want to cry.  Since I'm only looking to buy up to 1.5MM right now I would consider that in the smaller deals category, but everyone is different.  Any recommendation for finding partners in new markets?

I've seen a lot of people who bought in the last 2ish years turn around and sell at a loss because they overpaid and didn't know what they were doing.  I'll edit my post though I'm looking for things that are holding price tags of $1.5MM or less

I guess I can't edit the original main question.  Anyways how are your clients looking in these markets?

All of my portfolio is in northwest Indiana, which over the last few years has become a very hot market for out of state investors.  Just a few years ago I was getting deals done at 25k/door as an offer too good to refuse and now I'm seeing deals at 75k+/door giving worse returns than a high interest savings account in C class areas with all the problems that come with C class.

I'm looking to expand my portfolio and I'm curious what other investors have been doing in the post-covid investing era?  Are people doing direct mail campaigns or skip-tracing and cold calling owners themselves to get some off market deals done or are y'all going to other markets?  How are y'all keeping a pulse on multiple markets to invest in and keep deals coming to grow portfolios?  

If you can get both then wonderful, but generally most investors pick one or the other as it suits their individual goals.  People starting out usually are more interested in cashflow while someone already wealthy may be more interested in appreciation plays and debt pay down as a means of long-term profit with tax advantages.

Personally I disagree that "appreciation" is what makes you wealthy.  If you are buying properties with strong cashflow that will allow you to grow exponentially over time as you reinvest and build further cashflow.  Of course if it is all C class then you may get sick of the headaches and pivot to lower cashflow B/A class assets.

@Michael Plaks@Katy Bergey

Thanks for the feedback!  Sounds like things are as they should be.  I still have time to think on estimated tax payments and it looks like something that wouldn't be too hard to calculate a rough estimate myself.  

@Eamonn McElroy I was hoping for some general input on whether this is something that needs consideration at all or is a case by case thing depending on the sale price and how depreciated the asset is.

I sold FSBO and I paid around $1,200 in title so not quite "tens of thousands."

What should someone generally expect to pay for tax preparation?  I currently work a W2 job and have 5-6 rentals in my personal name out of state.  Looking at Federal plus 2 state tax returns and associated real estate schedules.  No LLCs or entities at the moment.  I'm just curious if $1250 is a big overpayment or pretty par for the course for taxes like that.  I think my CPA is doing a great job, but I also don't know how much is actually going into the tax prep.

Secondly.  I sold a rental this year and I would like to know if I need to make any pre-payments for the tax liability on the sale.  Can I just wait until next year and do my taxes to see how it shakes out or would I be looking at a massive penalty?  My CPA said he charges $280/hour to do any sort of work on determining estimated prepayments and I'm not really looking to spend like that at the moment unless it is warranted to avoid a much larger penalty.

Any help is appreciated thanks!

Yeah I feel the same.  Its not something I worry about or want to worry about getting done.  Honestly its not a ton of sidewalk at all depending on the property.  It just sucks because when you've got more than a couple and you see it snowing outside you're just thinking about how much its costing you in total vs per building.

@Shane H.. Thanks that's what I was looking for.  I was curious if clearing sidewalks with less than 2" is excessive or pretty standard and that covers that.

These are all multis and tenants aren't going to be the ones doing it.  I'm not worried about city laws.  @TIm Harstead If the city really fined they would be able to fine majority of people in bucktown.

I'm mostly just curious what everyone else does.  Do y'all have a rule of thumb or just salt/shovel if there's any snowfall that won't melt by the afternoon?