All Forum Posts by: Jon L.

May sell next year. The problem with a 1031 right now is most of the properties we'd exchange into have 4-6% cap rates when the mortgage rates are 6.5-7%, even at 50% LTV on the exchange

 Is it $570k of business loss per rental property? 

The problem with a 1031 with a 50% LTV at 7% interest rates is that caps are 4-6%. The 4 single family homes are all rentals and worth about $1M each

Can I cost 4 single-family homes to create a paper loss that offsets $2M in capital gains from an apartment complex? Where can I find more info on this (besides go talk to a CPA)

As a real estate agent, if one makes $100k but writes off $60k, they only make $40k and it makes it harder to qualify for loans. Which write offs are best and can be added back into the income to qualify? I know laptops, cell phones, etc may be depreciated over the years so it takes less of a hit. Any other info would be greatly appreciated! 

I drive around neighborhoods and scroll through google satellite views a lot. Is there an app or something that makes it easy to add those homes onto a list so I can mail or contact them later? Right now I just have a pen and paper in my car and an excel sheet at home. 

Prices are quite high in SoCal, with the average around me being $600-680k for a 1200 sq ft house. How do you find homes and sellers who are willing to sell me their $650k house for $550k so I could put $50k into it? 

I'm also looking for 2-6 units where I can go in and renovate all the units as well. 

Thanks for the response!

Sooner or later I want them all out, but I want to use the additional person to increase the rent and/or evict them. Yes, the Notice has a witness line. Didn't know I did not need to list a witness, date and time. 

In the meantime, yes I'd like to increase rent. It's only $1250 so yes I'd need the 60 days. 

Thanks again!

Matching paint is not as easy as you think. Too many variables. Sheen, dust, age, sample, etc. I go to professional paint stores and it's hard for them to match as well. 

Every time we have a 1-2 bedroom apartment and it goes on section 8's website(SoCal) we get 20-40 calls within 48 hours. 1/3rd of them are from homeless programs. Section 8 inspectors have told me off the record to NEVER let them in. Why not just rent it out to someone who has section 8 but not referred through a program that works with homeless people? Basically, you are doing your due diligence and finding the best tenant for your property. 1 bedroom units are the hardest to find for section 8 voucher holders and I believe there are over 19,000 voucher holders in SoCal. Find someone who works or makes 3x the rent(their portion). If you're renting it out for $1k  month and their portion is $300, make sure they have at least $1k per month in benefits/ income.  Do not accept anything from organizations that claim they'll pay the tenant's rent for 6 months or 9 months then after that they're on their own. Also, maximize the security deposit. 

We have tenants that pay only $7/ month and section 8 pays $1141. Main thing is only allow one person in. 250 sq ft may seem small but it is plenty for a lot of people. I believe that is the future of housing for hundreds of thousands.