All Forum Posts by: Kelly Pierce

Thank you Jay, Dave & Michael - all appreciated feedback. @Dave Foster I may need to dig a little deeper into what you are saying - if you'd be willing to chat I'd love that. (As I said I have a lot to learn in this space - so I'm in need of some clarifications on a few things). If that would work I would greatly appreciate your time.

@Vinay H. and @Dave Foster thank you both for the response. I’m not tired of having investments at all, actually the opposite as I’m looking to move towards full time if that’s possible for me, if I can learn enough to make that happen.

I have one paid for that’s worth $185k (paid $42,500 & not much in capital improvements) and way under valued on rents, current tenants been there for almost 6yrs and definitely can’t afford a rent increase. I know I have options there but considered spreading out that value among more than one properties. My other is not a good rental as it was not purchased to be one. I’d likely have no capital gains tax or almost none of this one because of the capital improvements I’ve done.

Dave I do believe our area is currently tapped out for appreciation for the next bit which is why the second one must go now.

Rents vs. purchase price in this area are as an example $300k pp to like $1200/mo. rent so way off the even 1% rule. Terrible.

To 1031 I’d need to replace $570k in value.

Hopefully that gives a better picture.

@Matthew Osofsky Thanks and I’d love to chat more with you about that if you have some time this next week?

I wanted to check in with my local California folks to see how everyone’s feeling about residential investment properties in California right now. I’m feeling like it’s time to sell my two single-family residences and debating how to go about it.

I’m considering buying out of state via 1031 exchange but hearing that people are struggling to find good investments on BP. My goal is more buy & hold but I really have so much to learn as an investor.

I have considered the turnkey option but after some recent reading on here I’m wondering if there are no good buys to be found because potentially the project expenses etc are not accurate. I’m interested in learning about other investments like multi family & passive options but probably am not qualified as I’m not accredited.

Don’t want to but wondering if I need to just sell & pay the capital gains & sit for a bit in the proceeds until the market shifts a bit?

Would love to talk to some investors to toss some ideas around and also network for the future. *want to offer my fellow CA investor clients some options too for their situations.

Also is there a BP specific meet-up in the Sacramento region? I’ve joined Sacramento Wealth Builders recently and attended my first meeting.

Looking forward to connecting! Appreciate your time and consideration.

Frank & Jon thanks for taking a look and I agree with you both. I ran the numbers with 20 & 50% down and it never works out. They did "say" only 2% vacancy (I agree it's low) and still I can't make it make sense. Makes me feel Turnkey just isn't the way to go. Again nothing against Memphis for sure - they appear to be a really good company from what I've read - I just don't think the numbers work out to the 10-14% ROI they spoke of to me.

Jon I'd love to connect and learn more about what you do since we are neighbors.....I lived in Rocklin for several years and miss it - my kids graduated from RHS & WHS.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

So I had a discussion with Memphis Invest and got vague numbers of potential deals they have. I went with the cheapest one discussed (very briefly) and did a quick calculation. I feel like I'm using the calculator VERY wrong or something. According to this even if I paid cash for a property at the rents they are claiming there is only a 2.25% ROI (if the CAP rate is 7%) which I don't yet know for sure. Really I'm not claiming anything wrong AT ALL with Memphis's deals but potentially with my calculations. I was looking to do something like that with 20%-30% down but it was so upside down it didn't make ANY sense.....again unless I'm using the calculator wrong. I did a Webinar where they (very quickly) went through using the calculator so I thought I had it down???

Thanks Sasha and yet certainly not my intention to hurt them - they are good people. I may consider the cash for keys option. Would want them out before listing if possible.

@Dylan Vargas & @Michael Tripp Thank you both, you summed up exactly what I was thinking. Unfortunately with prices here this one won’t go to another investor so it will become an owner occupied. Meaning no one will want or be able to afford a tenant in it as they will be paying less than the new owners payment will be.

Guess I’ll just wait to put it on the market 30-60 days before the lease is up. That’s when I have to notify the tenants anyway.

I have a rental in CA where I live that I bought 2 years ago. Now that I’ve joined BP I realize it’s not a good rental investment (thanks to the calculators-although I pretty much knew).

I just signed new renters to a lease mid-October but I can see 1. It’s not a good rental.

2. Our market has all the indicators we may see a drop before long in prices.

Luckily it’s CA and in 2 years I saw a $50k appreciation at least.

Question is can I sell now legally and then if so how do I keep the tenant from being pissed at me and doing damage. I have a $2500 deposit and they had excellent credit so I’m hoping that’s enough and if I try to help them find a place. (I’m a realtor here so that might help).

Thoughts - Suggestions??