All, thank you very much for taking the time to write on this post. I really appreciate it. @Jonathan Greene thanks for your blog, very helpful. @Adam Schneider for the most part "YES" to your question. Usually when the agent is not familiar with the investor language their mindset and their network is also none investor friendly. For example they try to avoid properties that need $10K or more worth of rehab to get them Rent ready. As Anthony Dooley indicated they usually don't like to work with investors because they think we are waste of time.
For example when I want to use the BRRRR strategy, based on comps, estimated rehab & 70% rule my offer price is much lower than what the seller is asking. Even if I use the BRRRR calculator to send them all the nice looking analysis to show them why my offer amount make sense they won't send the offer through. At this point I have to work with the selling agent to get something going.
Maybe I should explain a bit better for what I'm trying to do so you can direct your valuable advice toward my hope to achieve plan. We got most of our properties around 2012 in southern California where we currently live. After some appreciation I tried to use the 1031 to move my investments from C+ location to a B location. Doing this for the first time and not using the right agent familiar with the 1031 timelines the deal didn't go through and I ended up paying lots of taxes (blind leading the blind, It was my fault not getting properly ready not the agent). But thanks to CA's significant appreciation we still made 7% after taxes. I put that gain in the market and increased the gain to %17. Now that the market volatility is going up we are ready to take the again out, pay the needed taxes and re-invest into real estate. Also we had one property in the A location, after our last tenant moved out, we moved in Jan-2016. We are planning to stay here until Jan-2018 to meet the 2 year rule. This way after we sell we won't have to pay any taxes on the gain. The gain for the A property is about ~$240 after paying for all the selling expenses.
So I potentially have 2 pools of Money:
CASH-A) ~$150K after selling our stocks and paying all the taxes.
CASH-B) ~$240K after selling our current primary resident.
Plan:
Part_1: Replace all 3 of my kids 529 (ages-3y twins and 6y old) with real estate. As most of you know 529 is a joke compare to how much college cost these days. I would like to close all 3 529 accounts, take whatever is there (~$10K) and add it to CASH-A. Then I would like to move the whole family to NC*. Use the BRRRR along with CASH-A to buy SFD. In this case I'm hoping to repeat this 3 times with the same CAHS-A. This way buy the time my kids are ready for college there is enough equity on each of these rentals to take some money out for their college.
Part_2: Use CASH-B for a down payment of commercial property, maybe 20 to 30 unit apartments.
North Carolina (NC*): We picked NC as our future state to live and invest in because of it's nice balance (living vs income, good schools and population growth). We have never lived or have family or friends in NC. Based on data and our family needs it appears to be a great state to live in and invest in. Sorry for the long post i'm looking forward for any comments, advise or feedback that you might have regarding my plan above. In short i'm hopping to use these next 4 months to get ready for this plan execution. As a result I want to start building my team while I'm in CA starting by finding an agent and a broker (start analyzing deals from here). Then GC, Management company, CPA,...
Again thanks a lot for your time
