All Forum Posts by: Karen Bolyard

Hello everyone,

I recently purchased a SFR as an investment property and started rehab this week. Trying to decide whether to flip or rent. I had originally thought I would rent for year and do a 1031 to avoid cap gains tax, but I was told since I am a real estate professional ( I am a broker), I would be exempt from cap gains. I had also heard I need to have several homes in an LLC to qualify. We have 4 SFR's- 2 in one LLC, 1 in a different LLC and 4th is my personal residence not in an LLC. Any advice / suggestions is greatly appreciated!!

Awesome thank you I will! To clarify, I have a had a couple of STR in past but always used prop mgmnt company so hoping this will be a better option!

I am just starting my first STR, thinking of hiring a co-host. Any opinions on doing this/ input on best way to structure it? I am very busy and thought it may be good to have some extra support to manage it.

 Good to know, thank you @bruce woodruff

Isn't VRBO an 8-9% fee and airbnb only 3% to the homeowner?   

 Thank you for your input! Yes, I did an escalation clause and a local mortgage lender and won the deal with option to finance.   It’s actually probably closer to 2.5% difference of my mortgage rate and my savings, but I am still leaning toward financing. I can always pay it off early or hopefully refinance.   I would like to get another property by third quarter.

I am in a multiple offer situation and offered cash with proof of funds for a beach STR property. I told the agent I may decide to finance (depending what accountant advises tomorrow) and what information I learn here. I will not have a lot of funds remaining if I pay cash, but wanted to win this contract. What are the benefits and / or disadvantages of cash vs financing. Interest deduction, what else? It is a 525K purchase price, 25% down. My premium savings would earn about 1.5% -2% less than mortgage rate . I hope to buy another property this year, either at the beach or locally in Triad NC for either another STR, flip or mid term rental. Thanks for any advice!

Investment Info:

Townhouse buy & hold investment.

Purchase price: $525,000
Cash invested: $157,500

Townhome across from beach, ICW and ocean views, good rental potential

What made you interested in investing in this type of deal?

Rental and appreciation , plus off season use

How did you find this deal and how did you negotiate it?

MLS,

How did you finance this deal?

25% down but may pay cash, weighing out tax benefits if I finance

How did you add value to the deal?

escalation clause since there were multiple offers

What was the outcome?

Won the deal

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes I am a realtor