All Forum Posts by: J P.

LOL I tend to talk things through out-loud... @Joe Villeneuve I honestly wasn't sure if the 1031 worked in that manner so excuse the newbie rambling. I suppose I've learned more reading than I thought!

Thank you for the explanation.  @Joe Villeneuve It makes sense that flipping would be a good way to build up more capital in a shorter period of time. After you build up enough capital from flips, you buy holds with that cash and repeat. You make it sound easy...but of course, I'd have more questions. What about taxes on all of the flips? I don't know all of the lingo just yet, but isn't it a short-term gain with flips so it's taxed at your regular rate (let's say 24%) but buy & hold is a long-term gain so it's taxed differently (say, 15%)? Or since you are investing the money back into another property, does it not get treated as profit/gain (like the 1031)?

@Corwin Hernandez

@Corwin Hernandez Sorry, I kind of hijacked your thread! I'm a newbie struggling with a ton of questions myself and ironically, your post touched on my issue with ROI when I did a search.

@Curt Davis Oh! I didn't think about the fees! Thank you!

@Joe Villeneuve That clears things up for me! Thanks so much. I've read a few of your posts to gain perspective on things. You seem to have lots of experience with BRRR. I hope to get there one day.

To answer your questions. Yes and yes. There does seem to be more deals to be had so long as you are willing to go outside of the metro area of Orlando.

So yes, if I bought 5 of them, then my cash flow would be better than the 2 options I proposed.

Thank you for helping me understand leveraging to gain more properties quicker. I'd never be able to do that if I just tried to pay cash for everything. Leveraging gives me more money in my pocket to invest.

@Matthew Vitlin @Joe Villeneuve @Curt Davis

Guys, I'd love your opinion on this given the info you have given above.

For a property listed at 36k, I was thinking of doing an all cash offer. I'm thinking 30k in rehab, making the investment about 66k. Given what you've said above about leverage, do you recommend a HML and refinance once it is rehabbed instead of all cash offer? Cash on cash 16.81% with 20% down and cash flow $518 vs 12% cash on cash return and $653 cash flow with all cash offer - not major difference in cash flow but the cash on cash is higher with leverage. Is the cash on cash more important in the long-run?

@Lance Robinson Wow! That's phenomenal! It's amazing how different markets are. You'd be stuck with Class C & D here in Orlando with those prices. I think I'm in the wrong market. LoL Thank you for the info. How long have you owned the properties?

Hello @Lance Robinson Thanks for sharing. No vacancy is great. The numbers seem great too but I am a newbie so I'm not sure what the numbers represent with no heading. Cash on cash and cap rate are the first 2? Do you mind if I ask how much you paid for the 4 properties and if they are class B or C neighborhoods?

Congrats @Mike Collier for making that jump! I, like everyone else, am trying to make that first jump! After the first one, piece of cake right? LOL Best of luck to you and can't wait to see before and after!

@Vinod Sirimalle What area of Jacksonville did you decide on? I see a lot of violent crimes (shootings) mostly on the west side so I am debating on that market.

Thank you @Account Closed I will send you a PM. 

Thank you! @Ghenia Flewellyn