All Forum Posts by: Jesse Mitchell

@Lee L. What ended up happening with this?  Did you pull the trigger?

@Dave Foster Very valid point, the idea of intent didn't even cross my mind on this.  Sounds like a 1031 is off the table for this situation then unless I want to rent it for a year or two. Thanks for taking the time to chime in.   

Hey there bigger pockets. I have been investing for a few years and have built a modest portfolio in that time.  I have stumbled into an interesting situation and am looking for feedback from anyone that might have been in the same situation.

so I am selling a duplex of mine, profit will be around 60k

I am also buying a new primary BUT the new home is currently a rental and I will have to honor tenants rights until their lease ends on 7/31 and closing in may. I am using traditional 5% down financing to purchase my new primary.

so, for 1. Do you think I can use 1031 monies to buy it without it being a commercial loan?  And do you think if I go improvements to it while it’s rented I can utilize those expenses as write offs?

Trying to minimize my tax hit from the duplex and exploit as many benefits as I can by having to rent my new primary for two months.  Thanks in advance! 

“So yeah I'm fully aware that there are a lot of unforeseen risks here. And I'm certain I will learn a lot from this endeavor. And I'm hoping I can take it in strides and learn from it all without bankrupting my fledgling business.”

This should be a major red flag for you. You came here for advice and it’s almost overwhelmingly suggesting you run away.  There are many ways to do real estate without unforeseen risk, lots to learn, and potential bankruptcy.  It sounds like you have a good chunk of change and a vision for a life in real estate but trust me, this will rock your world at a time when you don’t need the distraction.  Keep saving money, enjoy the newborn and wait for a duplex in Madison to rent to Students  and start there.  *praying hands emoji*

 This right here…….

I am surprised this hasn't been mention yet but please think very seriously about not buying this property.  This sounds like a nightmare in every single way imaginable.  Having a modest portfolio of 100 year old homes, the maintenance is constant.  Does this town have the resources to support your hands off (assuming) strategy.  Where is the nearest lowes/home depot? Is there any reason why a generation from now this town doesn't have a population of 300 instead of 800? If that roof has to be replaced is there a roofing contractor within 30-50 miles that would even answer your phone calls to come look at it?  All things to think about..... cheers!

You can offer what ever you please, especially if the roof is leaking.  In my opinion, when a leaky roof is concerned, the value goes down every week. BUT, I am not exactly in a hot market either.

I'm just jealous of your property taxes!!!! This building is the same as my $125K primary residence in Illinois.

2 in 2017

3 in 2018

4 so far in 2019

Started listening to BP in 2015 or so, wish I could remember which podcast was my first but after listening to the 1st G.C. episode and 1st Jake and Gino episode I knew I had finally figured out what I wanted to do with my life.

@John Pflederer  is this property in Springfield by any chance?  My partner has rentals down there as well and might be able to offer up some good contacts for general maintenance/handy man work.  PM me if you prefer to not disclose the location.  Thanks!