All Forum Posts by: Josh Calcanis

Awesome work with having 4 OOS. 

It sounds like you're a little more excited about a local deal! In all reality you could do a 1031 on the properties and put it towards a new complex locally. I think it really depends on when you think those cap ex costs are going to come into play. Are all four HVAC systems on their last legs? Also what are they? SFH, Duplex, Triplex?

Personally, a SFH in this situation, I'd be more willing to sell. A multifamily (with room to grow on rent) would be a good idea to keep up spend the cap ex and raise the rent. Although it wouldn't be a commercial deal, lenders still take into account income.

Capital Plus in Lake Mary is really good and has experience with investors.

Unfortunately, I can't speak for Houston, but Orlando handled it pretty well. Like Kim said, trees down (some did go through a roof or window), power was out for some time, and shingles were lost. Fortunately, homeowners insurance covers (with a deductible) most if you make sure you do your due diligence.

I had shingles removed from one of my SFHs through last years hurricanes and I paid my deductible for a brand new roof (60% off a new roof) so in some ways it can play to your advantage.

Stick to your investing plan, buy great deals, and stay smart. I think Orlando would be a great market to start up.

If you're calculating PMI in there, I'm assuming you're shooting for less than a 25% DP? If that's the case and you're in the $295k range, have you looked in Thorton Park/College Park areas? You can find some deals there if you look and most have the 'mother in law' suite in the back.

The kicker there is that the majority of them are not zoned to add one... don't quote me, but I believe it needs to be R2, R2A, or R2AA to add them in.

@Ricardo Fainsilber I've used Fusilier out here for 3 years. My first 2 years with them I lived in Seattle while they managed the properties here in Orlando. Excellent turnaround time, the leases were beautiful (legally speaking), and outside of some issues with finding specific contractors, they've been great. If you would their number feel free to PM me.

Initially, I thought this was a complex, but it sounds like more of a large home right? I'm partial to multi-family, so I'd put my money elsewhere, especially if the below numbers don't work out. If I had to start over, I'd have a little more direction in what I want to begin investing in. I.E. SFH, multi-family, commercial, etc.

You'd need to know cash flow being generated, current expenses, where the market at in rent is, and the ARV how I look at most deals. Those will determine what your return on investment will be and of course your net operating income.

Investing in what specifically? There are a lot of options you could reinvest that money into, just really depends on your comfort level and what the goal of the investment is. You've got a paid off SFH bringing in cash flow, you could 1031 and upgrade to something else, refi and invest that into another property, or you could just invest the cash flow into your RE portfolio or dive into the multiple ways of investing outside of real estate.

I'm not a CPA, but at the end of the day, the income from your properties are realized when you receive them. There isn't a way to 'hide' them from the taxes by immediately putting them into another investment. 

The only way I can imagine something would immediately go back into an investment (and maybe avoid taxes UP FRONT) would be if you funded part or all of your deal with your IRA or 401k, in which case you have to pay back whatever percentage of income is equivalent to your 'loan.' This doesn't apply to you though because your house is paid off (unless you did fund part of your deal with a retirement account.

@Nelson Leal I swear every time I'm on BP or listening to the podcasts, I'm learning something new.

@Dave Foster in the case of a reverse exchange, you'd have to have capital to put down on the property you're getting the title to correct? Or would that be part of the deal you work out with the seller?

@Andrew AshbyThanks!

@Dave Foster Awesome advice. Do you cover the Orlando area as well?

One question I have is about the reinvestment target you mentioned. Is that total cash out you receive from the sale or is that the value of the property?

@Aly W. congrats on the condo!

I haven't picked a 1031 company just yet. I'll be meeting with a commercial lender next Wednesday and hope to have a better understanding of what the area has to offer. I'll take a look at First Exchange too!