All Forum Posts by: Jerry Ologh

Thank you all for the advice. I will surely learn from this mistake.

       I canceled the contract to buy a fourplex because my lender concluded that the property did not pass their underwriting requirement, and will not fund the purchase-- notes/proof of this was provided to the seller and title company. My realtor informed me that I would be getting my money back, and asked me to sign the release of the escrow deposit document. Unfortunately, the seller had changed the document to say funds should be sent to them (the seller). Without reading the document, my realtor forwarded the document to me, and I signed with the knowledge that funds were coming back to me (I have text messages of this as proof). The title company sent the escrow deposit to the seller. I informed my realtor of the error, and he tried correcting it, but the seller refuses to refund the money to me and will not return calls anymore. Do I have a recourse to get my escrow deposit back or is it gone for good? The deposit is less than 10k and I live in Texas. Thank you!

Thank Allan and Matthew for the information. 

Hey All,

      I was just wondering as a passive real estate investor, am I eligible to apply for the new SBA loan/grant from the Covid-19 stimulus bill that was just signed into law? If not, how can I become eligible?

Thanks.

@Mark H. Porter and Dave Foster, thank you so much for the replies. Much appreciated!

Hello Guys,

    I bought my first property in September of 2015 as a primary residence, and converted it to a rental property in September of 2017 (2 years later). I am planning to sell the property in April of 2020, but worried of the tax implication. I know there's a tax exemption on the first $250k in profit if I lived in the house for at least 2 years (this I do qualify for). Question-- How does the fact that I held onto the property for 4 years and 7 months before sale (primary residence + rental time) affect my future taxes? Do I still qualify for this $250k exemption even after 4 years and 7 months of ownership or does the additional years nullify this rule in my case?

Pls note, I do not want to do a 1030 exchange because I do not want to fall under the pressure of buying a bad deal in 6 months or less just to meet the 1030 exchange requirement.  Thanks.

Jerry.

Thanks Immanuel!

My first was also an MLS deal.

     Thanks Rob and Jeff! Your replies are very helpful, and very much appreciated. To answer Jeff's concerns about the analysis, I did not know there was a need to include closing cost in the calculation (novice mistake). I sure will include this in my next calculation. The property is turn key so no need of any repairs at the moment. 

      The 7% vacancy is based on an estimate of average vacancy for such properties in this neighborhood. The cash flow of 5k is the least amount I was hoping to make annually after all expenses were made.

Hello guys!

        I am quite new to real estate investing with nothing but my primary residence under my belt, so I need some insight as to what I may be doing incorrectly. I am looking at this duplex in Arlington Tx,  and hoping to make an offer soon. I have run my numbers, but feel as though I may be overestimating/underestimating hence the negative cash flow. Can you please review my analysis, and suggest what I may be doing incorrectly? What will be a good offer for this property for a cash flow of at least $5000 per annum.

 Thanks.

Asking price = 249,000

Total Annual income = 29400

Estimated Taxes = 5496

Estimated Insurance = 2340

Capex = 7% (2058)

Repairs = 7% (2058)

Vacancy = 7% (2058)

Property Mgt = 10% (2940)

25% down payment (62250)

Annual P & I = 1064 x 12 = 12768

29400 - [ 5496 + 2340 + 2058 + 2058 + 2058 + 2940 + 12768 ]

= 29400 - 29718

Cash flow =  - 318

    All suggestions and corrections welcome! Thanks!