All Forum Posts by: John T.

@Sal San Hafa Adai!  My wife and I started investing in buy and hold RE out here about 2 years ago.  We are both from here - born and raised.  So far we acquired two properties, not including our primary residence and currently looking for another.  Yes, costs are high...mainly because the cost to build is high...being concrete and all.  Cash flow works best when investing in rentals for military personnel.  Section 8 is another way to go, although that's a different monster.  Hope this helps.

@Dorothy Butala Thanks for the insight. I will definitely try using that research method for my local market. There are so many rules of thumb on BP, but it seems that many do not apply to this type of market (99% of all properties are completely concrete). For example, factoring in CapEx for roof replacement when a roof here lasts forever practically. Also, the 1% rule seems almost impossible considering the mere cost to build a home out of all concrete. But yes, thanks for the advice!

Hello BP! I'm trying to find buy and hold metrics for rentals built entirely out of concrete. I reside on Guam and normal construction is all concrete. Given the higher cost of materials, does anyone have calculations for this type of market? For example, the 1% is simply not possible based on cost to build. Any help is appreciated.

@Account Closed Wow...how did I not get that lol.  Okay...now that I'M caught up...using your numbers, for argument's sake, which would be more advantageous for me: 140K for 5 years at 0% interest or 135K for 5 years at 1.4402% interest?  Would it matter?  Thanks!

@Wayne Brooks Thanks for the post.  That was pretty simple.  I was also not aware there was a difference between mortgage and note.  Thanks!

Hello BP Community!

If a partner and I purchased land with both names on title, does the conventional loan (mortgage) on the proposed construction need to be in both our names?  It's possible to have both names on land title but only my name on mortgage, right?  Thanks for your reply!

Personally, I would secure a tenant for your current residence before giving notice and relocating.  I would just advertise "available from" and give yourself a reasonable time that factors in notice period for prop B and turnover.  I am considering doing the same thing next year for my primary residence.  Just my thoughts.

@Account Closed Thanks for the post.  Yes, Guam.  The reasoning is to ascertain the tax implications if the property is ineligible for conventional financing.  By the way, is the 1.4402% some IRS requirement?  Thanks!

@Loren Clive Thanks for the reply.  I understand the rationale for the 10% down, but is the interest-only for X years the norm or the rule?  Supposing the property is ineligible for conventional financing, I'm trying to figure out an exit strategy via owner financing that would minimize tax liability.  Property is currently being rented and exceeds the 1% rule. Thanks for your input!

@Daniel Dietz Thanks for the post.  Your example is EXACTLY what I'm talking about and trying to figure out.  When it comes to owner financing, what would be the most cost effective way (or tax savings way) to structure such a deal?  When it comes to capital gains tax vs. ordinary income (interest) tax, what is the most advantageous approach?  The goal is to build wealth, of course, and one of the first things we learn is to hold on to as much of your own money as possible (legally).

Thanks for your help, Dan.  And yes, definitely considering PRO.

@Daniel Dietz Thanks for the share!  Unfortunately, I can't view the forum.  BP says one must be worthy (PRO account) to view haha.  If the forum access changes, I'd be very interested to check it out.  Thanks again.