All Forum Posts by: Kate Weinberg

@Drew Sygit thank you for the amazing advice! I really appreciate it and will take it to heart!!

Hi, 

Looking for some good quality PM companies in SLC.  Duplex type investments...

thank you!

@Joe Villeneuve  I have thought about this idea as I too have the exact same situation as the OP with same $$ amount of line. The thing holding me back is I foresee a lot of defaulting in the coming 6 months (and obviously, longer) and then wld one be left with an asset that is now lower than the amount they owed to you?  I’m prob missing something though.. granted, you have made some interest spread over that time frame but it may not equate to the amount the asset has devalued over said time? Obviously not as informed as u,,, and cld be way off here. 

@Nathan Anderson Hi Nathan, fellow Parkite here- good to meet you. What a great "problem' to have!  Keep it and rent it for the next 6 mos. or even a 3 month rental x2..  That cash flow is amazing and it will avoid a heavy tax bill. Win win. Hold off on your remodel of the new house for that 6 mos.  As I'll bet you already know, There are endless people here wanting short term (6 months or less) while they wait to find their dream home or wait for their home to be built. Win win win.  As you are already doing, you will check on options for pulling equity out...possibility harder to qualify with the current debt (however I admittedly don't know your fin'l situation, so it may not be a problem, and with that rental income, it should help qualify.  Try AFCU or other CU's...much looser lending criteria on Helocs i have found)  There's a possibility you don't get 2.3M in 6 mos but it sure won't be as much as that tax bill.  Park City going down in value 25% (the equivalent of your stated tax bill) in 6 mos is just not going to happen.  Way Too much cash offering here to be affected that heavily and quickly by int rate pressure esp with the pent up demand of peeps wanting to move here and sitting in rentals waiting for more inventory to present. I'm super impressed you found a house for $750k- Unheard of! Wait the 6 months and keep this current house to cover your options: fulfill the 2 yr mark for both $500k exclusion, and open up 1031 option due to it being an investment property during that time.  At the 6 month mark you have the option of selling and paying some gains after $500k exclusion, or you can 1031. In the meantime, I am sure you can qualify to pull equity out with that extra income from rental coming in. If no cash able to be pulled out, just live in the unremodeled home for 6 mos.  One last thought, could you stay in the remodeled home for the next 6 mos and rent out the new home you bought or is it unlivable?  Where are these 2 homes (neighborhood) 2 cents.  Best of luck and kudos for killing it!  Let us know how it goes!

@Jeff Moore I was in this exact position!  I ended up selling and missing the timeframe on my 1031 Id'n period.  Mainly because I could not find a replacement property that was a good investment.  maybe i was greedy, maybe i had high expectations, either way, I didn't find anything even close to a 7% cap that i was willing to jump on. I didn't look all over the country but i did extend into the midwest and still didn't feel comfortable.  So, I'll pay the gains and maybe get a good deal when things lower (they already are here in SLC).  I have another property I am currently in the same position as you- an offer, and I may not take it based on my previous experience.  Same interest rate as you as well.  I don't think I will sell it, appraisals are coming down, and things are sitting on market (again, im talking here in SLC).  Rents are amazing still here, not sure about where you are.  I got great advice here when i asked a similar question to you on these forums a week or 2 ago.  General premise was to keep it. Times they are a changing. 

Edit to add:  Just because I couldn't find a replacement property however, doesn't mean you can't.  You may have better inroads, be looking for a difft product than me, etc.  Im just purveying the landscape and it doesn't seem favorable...if you have to borrow, (esp if you are looking to level up you will likely need to), the lending envt isn't friendly right now, the broader market is cooling off and yet sellers of these bigger MF properties are still asking top dollar.  Best of luck though- can't wait to hear what you decide!!

@Drew SygitThe duplex is actually pretty good roi.  I have 250K invested and it will gross 3200/mo.  Net prob $2000/mo after mortgage, pm, and other expenses. it just feels like a big opportunity cost to tie up that much capital when i feel i could get similar returns, but now on $500K after the sale, elsewhere.  I have done a significant amount of searching for a replacement property but its all been on paper...who knows what actual real returns will be.  Investments I have seen that are in the running for me are all 9% cap ON PAPER and in midwest.  Big leap for me as Im used to my Salt Lake City market and know that it is solid, despite a possible market adjustment on a national level.  Im not familiar with the midwest. Thats what im also toying with.  I appreciate the point you made about Blackrock! You're right! good insight!

@Paul Riley  I had not heard of note investing- i will check into that...thank you for the idea!!

@Brad S. You were so right!!! The appraiser wouldn't take my income approach and held with $570K appraisal value. Which i now understand the reasoning. Buyers still wanted their 10k septic concession in addition to the 30K lower appraisal value (despite us fixing the septic line and showing camera for proof) so we said see you later- no deal. That would have been $560K instead of our ask price of $600k. Plus, i called the city and found out theres a very very good possibility i can split off part of the property into a flag lot and either sell that lot as land or put a duplex or sfh on it. ie theres unrealized value there. You are also right Im stuck with the cap gains on the smaller condo sale as of now. The ADU I don't want to do right now, costs are really high and timing is months out for materials.

You are also right on with the heloc idea...i have helocs on all my properties and thats how i fund my flips.  Ive started gaining traction on some investments in other cities so i might just pull the trigger.  Cap rates are better than keeping my duplex for rental purposes.  I just have so much equity tied up there---id like to utilize it to the fullest degree.  thanks for your insight!!

@Bruce Woodruff you r absolutely correct-I am! That’s exactly why I asked for advice!

@Shane Kelly thank you!  I had not thought of it that way!