All Forum Posts by: Justin Garrett

Erica Shaunta Thompson what I really did was just listen to what they are always saying on the pod cast. Brandon Turner always says let people know what you are doing. I always ensure to bring it up to every one I talk to about my retirement plan or my investment criteria even if it's just a small part of the conversation they will remember you if a deal comes up. Well that's how I landed this deal. It was brought up to PM in my home town and they weren't in the position to purchase it so he called me and asked if I was willing to take this deal on! After three months of negotiations finally sealed the deal! In my home town there are only a few family's that own most of the real estate and most of these individuals are getting up there in the years and are looking to unload some stress. I hope to over the next 8 years to make it to 100 units (wife willing).

Jonathan Pflueger I got seller financing 20 years 5% fixed rate 4% down and I collect rents for 6 months before making first payment. The seller was trying to pay a large amount of taxes and had had not really stayed on top of his manager so I asked for the free six weeks to bring it up to full swing. Only 16 days in have all but two units filled facebook market place is so powerful in a small town!

Andrew Johnson I am paying a flat 10% to my PM. The town I am in is rather small 35,000 but has a good sized college. Most of the property owners are older and have owned in the town forever. I would be the first to ask for this "advanced" type of tracking but I feel with out it you aren't treating these units as a business and are guessing. I am thinking about going with buildium because of the cost just need to some more research and get my PM on board. Thanks for the feed back.

Collin Schwartz that is the path I am on I want to have 100 by the time I get out of the Navy. Do you pick buildium for the price or any other reason? Do have a property manager or self manage?

Hello, I just closed on 16 units (creative financing) taking my total to 19 units and I am having a freaking blast it's a rush hunting the deal working another 8 unit now. How ever I do have a problem units are in a small college town and property manager is great but doesn't document the units as well I would like. I have looked at many of the website like buildium and appfolio I don't know if I really need that much detail maybe just a nice excel document. Any suggestions or incite on how you track your rentals would be appreciated! Thanks for the help Justin

Hello BP, So I close today on my first house I ever purchased. I will making 156,878. Wow that does look nice to type out but I didn't go in to this looking to make that kind of money I would say I just was lucky right place right time ! But now what I already have another rental in Kansas that makes around 300 a month but the market has slowed down a lot because of oil prices. It's my home town market though that I know like the back of my hand I could buy with a 15 year loan and still make a few hundred a house but not being local is that really worth it. I would love like most other investors to get in to an apartment deal but I don't think the 156 thousand will take me far. Should I just shelf the money maybe wait for another down turn that will happen but don't know how long that will be. I just hate watching money not do any thing.

@Clayton Mobley Thank you so much for you reaching out that was a lot of help for sure! so to answer your questions.

1. I did not live in the  house for 24 months. I purchased the house as my primary residence in 2010 lived in it for 573 days as my residence then was given orders to Hawaii followed by my orders to Virginia where I am currently stationed.

2. It has been a rental for 14 Nov 2011 and well be closed in April of 2017 so I have rented it for around 5 1/2 years.  I also wasn't very smart about this due to it being my first property and I didn't take deprecation on the property while I was renting it.

3. I do have a Qualified Intermediary in my small home town were I wanted to purchase an apartment building, but that deal is falling apart and doesn't looking like it will be able to be completed. All the other properties they are showing me aren't meeting my numbers or just are trash that will take to much time and work to get back on the market. So I am worried I will place this money in a 1031 and not be able to find properties that will meet my investment criteria.

4. I did not live in the property for 24 months but was wondering though if I used the Service, intelligence, and Peace Corps Personnel(Publication 523) to suspend the 5 year test period and disregard the 5 plus years it was rented out. Than qualify for a partial exclusion  due to having to move out side of 50 miles for work. I did those calculations and if I qualify than my exclusion limits would be around $380,000.

@Bill Exeter  Thanks for reaching out! That is what I am hoping the only problem is I haven't lived in the house in the last 5 plus years because of military requirements keeping me away from San Diego. I was wondering if I could use the Service, intelligence, and Peace Corps Personnel(Publication 523) to suspend my time away from San Diego and apply for the partial exclusion for the 573 days that I used the house as the primary resident.

Thanks for reaching out I am in a pickle with this apartment deal falling through and I don't want to perchance bad property and also do want to take a HUGE tax hit either.

I thought that at first but I was 10 grand over all the other comps that sold I was the highest sell in the complex far. I might have been able to get more but it's another risk I would of had to take. I would have had to come out of pocket for the holding cost and than I am going to have to do a 1031 to avoid gain so wouldn't have got that holding cost back.

Hello BP, I listed my townhouse last weeks and with in two days all cash offer for full price with a 15 day closing! Close date is the 25th! Now comes the first world problems of taxes! I lived in the house for 573 days was moved because of the military and I know I would have lived in there for 2 years I could have excluded all the gains but does any one know how to prorate the gains? Bought the house for 235,000 Sold for 390,000 Commission 17,500 Thanks for the help!

Hello all thanks in advance for the assistance! So I am putting my rentals on the market at the end of the month that I purchased for 230. The list price will be around 400. How much would I need to spend to ensure all my gains aren't taxed by capital gains tax? One tax guy was saying it's double what net is he right?