All Forum Posts by: Kevin Howard

@Crystal Smith Thank you for your input. I agree, they aren't producing well enough considering the amount of equity in each. I'm happy with the vacation rental but the quad is under performing. I've thought about selling it (worth more now than ever) however I don't want to pay the capital gains tax. I just don't know what to do with it other than let it be...I do plan on getting the rents up to $2k a month per unit which will help slightly.

@Steve Vaughan Thanks for the response. The properties are in a LLC which until now I didn't really think was an issue. I guess to refinance them I would need to put them in my personal name which shouldn't be an issue. I love the idea of pulling money out and locking in a low 30 year fixed but I guess until I have a purpose for the money there's just no point.

Hello BP,

I'm considering refinancing my rental properties and was curious if anyone had any input on the situation...I own a vacation rental free and clear which is worth about $500k and brings in roughly $10k a month in rent. I also own a quadruplex that's worth about $1M with a $500k loan on it. The quad rents for $1800 a unit with my total PITI being $3700 a month (3.9% interest rate).

My question, is it smart to look into a cash-out refi for each of these properties even if I don't have an immediate need for the cash? I don't have any intention on selling the properties in the near future . My logic is that it might be smart to lock in a low 30 year fixed mortgage and to free up some of the equity for future projects.

My concern is that I don't have an immediate need for the cash. I'm already worried about my cash diminishing due to inflation...Scared to put it in the stock market and locating real estate deals is touch in this market. I have two vacant lots that I've wanted to build duplexes on but financing the project is tricky. Maybe use the proceeds from the refinance for the build and then refi the duplexes once they're complete?

Any input on refinancing to pull equity out and capitalize on the low interest rates is appreciated. Thanks!

@Joe Sera Thank you for your input and I totally agree.

I spent hours reading through other DST forums and came to the conclusion that it might not be the best option for me due to the lack of control, fees, and overall risk. I liked the idea of it being passive but overall I think I could find a better return if I invested it myself. I'm in the same boat as anyone else wanting to sell right now...great time to sell but difficult finding deals on replacement properties.

I owe a little less than $500k and it should sell for around $1.4M. My tax liability would be around $150k if I wanted to cash out. I'd only sell if I could roll it into a bigger property or multiple properties. I'm experienced in residential real estate but green when it comes to commercial investing...my brief research last night made me come to the conclusion that I can't afford a decent STNL property (was looking in the $2M range).

I'm unfamiliar with QOZ funds but will look into those later tonight when I get time. I appreciate you pointing those out!

Thanks again for the input! 

Thanks Kyle! I would love to take you up on that if you have time this week to talk? I'll message you directly.

Hello BP,

Does anyone have experience with Delaware Statutory Trust which they'd like to share? Pros/Cons?

I have a multifamily property that I'm considering selling but would need to do a 1031 exchange. I'm nervous about being able to identify a replacement property within the 45 day period and certainly don't want to pay the taxes. A client of mine recommended a DST as a backup plan if I couldn't locate a property in time. I'd have roughly $1.3M that I'd need to invest...

I would love to find a NNN property to purchase or something similar that's fairly passive (that's why I was considering DST's).

Any input is greatly appreciated! 

I have not been able to get quotes for modular duplexes. I think I could do an onsite build for about $330k per duplex (already own the land). Each unit is just over 1500 square feet, 3/2.5/1 and should rent for $1800 a month. 

Thanks! 

I'm convinced that modular is similar if not better than onsite construction. I think it really comes down to timing and pricing. I've made a handful of calls the past few days but haven't heard back. I'll try again early next week to see if I can get some sort on an idea of pricing. I appreciate the responses!

Hello BP,

I'm contemplating building two duplexes and thought of looking into modular options due to costs and timing. Does anyone have an opinion on modular vs stick built? Any experience in the NE Florida area? I've reached out to a few manufactures but haven't had any luck getting responses just yet...typical in this market. Any input is appreciated!

Awesome! Thank you for the responses :) 

Hello BiggerPockets,

Can anyone share a resource to acquire list for people going through divorce, probate, default, etc? I appreciate any information you can share. Thank you!