All Forum Posts by: Jim C.

@Frank Macias- What sq ft pricing did you get? I also have a duplex lot in Bonita and also looking to build a duplex.

@Kevin Reid- Just did a duplex in SWFL. Modular. $79 sq ft! Easier and MUCH cheaper than Site built. Reach out to me for more information.

My long distance travelers cancelled several reservations, but due to the closure of Disney and Cruise Line Cancellations, they were rebooked within hours! My house is  in SWFL near the beach. So if the vacationers can't do Disney or Cruises, they will sit at the beach!!

@Karl McGarvey- (Disclaimer: I own a house 1 mile from a beach, not a condo.) That being said, in my area, condos and houses on the beach cost 1.5M+ and rent for $900-1000 per night. My house, 1 mile away, cost $200k and rents for $200 per night. My house is 100% booked during high season, and 70% booked during low season. The high end properties are only booked about 40-50% high season and 29% low season. So, I would look at the ROI and not be concerned about the view/no view. Follow the numbers.

Bump.

Selling off rental properties using Land Contract?

Hello All- I’m thinking about selling some of my rental properties off using Land Contracts. The reason for this is that the tenant pool has declined, as well as to provide a steady stream of income for the next 30 years without having to worry about tenants and toilets!

Let me give you an example:

I purchased a SFR in 2009 for $30k. Today's value is $110k. Currently rented for $850 per month (after expenses, Taxes,Capex,insurance, etc. Net is $475 per month).

If I do seller financing (@$110k), I can get $5000 down and then seller finance the rest at 10% interest, which would result in a payment of $921 NET to me per month for the next 30 years! So, my total after 30 years is $226k in interest + $105k = $331k

As you can see, I would almost double my NET income each month by selling on Land Contract ($475 vs $921).

So…. what does everyone think? Netting $475 per month and dealing with tenants and toilets, or $921 a month for 30 years and not having to worry about tenants and toilets?

Comments???

@Matthew McNeil- I feel it too..... In fact, I might even say it's "Boredom????" So much so, to provide some excitement, I've started selling some off just for some excitement.

I'm in process of switching accountants, and my old accountant had always put all my long term rentals under Schedule "C" when filing. However, my new accountant is telling me that all the long term rentals should have been filed under Schedule "E" and that he wants to go back and amend last 3 years of tax returns. I asked my previous accountant about it, and she said that since my sole business is rental properties, that it HAS to be filed as a Schedule "C" since its being run as a business. Thoughts?

@Alex Nickla- I think the rents ($925-1050) might be a tad high for apartment rentals in CP unless they are higher end units. I have a few duplexes right off the square (North Street and Jackson) and they bring in less than that, and they are 3 bedrooms, but not updated. Crown Point has a ton of older homes that are configured duplex style, and these might be your best bet starting out. Feel free to reach out to me if you have any other questions. 

@Mark Larocca- I'd be interested in your portfolio. Message me with details. Thx.