All Forum Posts by: Jimmy Wilson

I am unclear on a couple of items I have been discussing with a fellow RE investor.  Here is the situation:

Own (2) condos in Breckenridge, CO that are rental properties and owned for 12 years.  If sold, would net a $300K capital gain between the two.

Purchase vacation rental property in Hawaii for $400K, then do a reverse 1031 exchange by selling the (2) Breckenridge, CO condos.

After using the Hawaii vacation rental property as a rental for 3 years, live in it for the last 2 years.  Then, sell the vacation rental utilizing the Section 121 primary residence.

Here is the question:

- If the Hawaii vacation rental is sold utilizing the Sec 121 primary residence, the depreciation recaputure.  Would the depreciation recapture be ONLY for the 3 years the Hawaii vacation rental was in service and depreciated?  Or, would you also have to pay the depreciation recapture for the previous (2) Breckenridge condos that were 1031'd into this property?

Thanks in advance!

Hi Kyle,

      My wife and I sold our 4/3 with pool and fully upgraded year 2000 home in Flower Mound last year and set the price per sq foot for the subdivision and that per sq ft price is still the highest after a full year.  We moved to the N Ft Worth area and bought a 1600 sq ft starter home that will be converted into a rental in another year.  

Your question about fear of missing out (fomo) with appreciation is really not a fair question.  If you are buy and hold investor, appreciation should not be in your criteria.  It is always the cherry on top.  But speaking of appreciation, compare the Dallas side to the FTW side and you can make the argument that Dallas is overpriced because of appreciation vs FTW if you ran the same charts over the past 3-5 years.  Also, if you bought into a peak market and the music stopped, how far will the price decline in either market.   

I missed the boat on the Dallas side and put my bets on the FTW side.  Still able to buy rentals at a good discount and competition is not running things up as feverishly as on the Dallas side.  Do your own homework, but focus on cash on cash return for cashflow.  I am getting a 20% a year on cash outlay ( down payment and rehab) and able to get very good tenants.  

Hope this helps and good luck!

Have you tried to get a conventional Fannie loan in the last 4-5 years? It's harder to finance a SFR than to get financing on 100+ unit apartment complexes. I wish there would be a discount coming for SFR in my market, but just don't see it. Underwriting is more strict now than in the last 25 years. Now the gurus will be firing up their marketing and attracting even more money which will either drive prices up in good markets even further, or at least level off the appreciation we have seen over the past 3-4 years. However, I believe the usual suspects will see more volatility than most other markets. Meaning, expensive east and west coast markets that have their RE markets back into casino territory.

Only time will tell.   

dfw, Dallas. Fort Worth, Tarrant, Denton

Looking for a GC that works with FHA 203k loans and has done at least a 50k rehab. Adding sq footage. Anyone in the DFW area know of someone they would recommend for a primary residence? Thanks in advance!

Since not even one response to this, I can deduce the following:

1.  If you are a GC or in the business to make money by rehabbing investment properties, I can say with 100% certainty that you will have a job in and around the Fort Worth area.  

2.  Since you will have the market cornered, after you move here and set up shop, get onto BP and brag about how much business you are doing, so that other people will follow and setup shop too.  This way, prices will come down for rehab work.

3.  Until we start hearing about how good the rehab work environment is here in the Fort Worth area, start packing up the U-Haul because you can make a killing!

Hello BP Nation!

I am looking for a recommendation for a General Contractor (GC) that works with investors in the Fort Worth market.  In particular, the south Fort Worth market.  If you have someone you know and recommend, I promise to buy you a virtual beer tomorrow.

Thanks in advance!

Yes.  There is a monthly meet-up for the Tarrant County area.  Adam Wright is the host.  Last month he convinced a title company to let the meeting occur on the patio at GlobeLife stadium while the Rangers played the Padres.  Shoot Adam Wright a PM and ask for the details.  The August meeting is happening soon.

Call a home inspector in your local area and ask him to do a ride-along, and that you are interested in pursuing a career.  Each state is different, in that some require licensing and some don't.  

If you ask a few local guys, I am sure that you will be able to find  mentor in this regards.  Most guys that love the profession will go out of there way to get someone new started.  If the first 2-3 tell you to get lost, keep calling around until you get one that will help you.

Where do you find a good list of local guys?  Ask 3-4 local realtors.  They will tell you the good ones and bad ones.

@Brian Adams

 If you are 100% occupied, then you need to do a better job!  Time to raise those rents again.  Congrats on your success.  Are you solely looking at value plays with C +/- properties?  Or, are you looking into applying the same strategy to B's and trying to get them up to A-?