All Forum Posts by: Kevin T.

Hi All, does anybody work with a good CPA that is knowledgeable with real estate investing? I am need of a new CPA and any referrals would be greatly appreciated. I would prefer to keep it local to Lee and Collier County (Florida), but I am aware that in the age we live in it doesn't really matter, where he/she is located and almost everything can be done online. 

Hi All, I have a property that I am planning to do a 1031 exchange with and it looks like I will have about $150k to reinvest. How would you reinvest the proceeds? 

My current thinking: In the area I live in you can get buildable SFH lots for about $20k, so my plan is to buy 6 lots combined with the 3 lots I already own I could build a total of 9 SFR homes on them, the goal would be to cash flow before taxes $500 per home ($4500 in total); I am also thinking of buying something commercial using the 150k as a 20% down payment, which would be a purchase price of about $750k.

I feel like this reinvestment will really shape the future trajectory of my RE business any advice? Thoughts? Comments?

Hi, I have a question regarding financing on a BTR project I am working on. How does land value affect LTC calculations? Here is the scenario:

We own a piece of entitled land (free and clear no financing on the land) that is worth $4,000,000

It will cost (vertical, site work, fees) $15,000,000 to build our project.

Let's say a lender will lend 65% LTC. Will they consider the $4mm as cost?

For example:

65% of $19mm ($15mm+$4mm) is $12,350,000

OR

65% of $15mm is $9,750,000, and then can we give them the $4mm land as security/equity and not come up with out of pocket money?

Any help is appreciated.

Hi, I have a question regarding financing on a BTR project I am working on. How does land value affect LTC calculations? Here is the scenario:

We own a piece of entitled land (free and clear no financing on the land) that is worth $4,000,000

It will cost (vertical, site work, fees) $15,000,000 to build our project.

Let's say a lender will lend 65% LTC. Will they consider the $4mm as cost? 

For example:

65% of $19mm ($15mm+$4mm) is $12,350,000

OR 

65% of $15mm is $9,750,000, and then can we give them the $4mm land as security/equity and not come up with out of pocket money?

Any help is appreciated.

Hi,

I was hoping to get some advice on what other people in my situation would do.

I have been under contract on a new construction home since April 2021, which was supposed to be my first rental property. It looks like we are getting close to the finish line and will be closing in June. With rates rising significantly I am expecting to cashflow about $400 per month after PITI, Vacancies, Repairs and CapEx have been accounted for; I calculated about $700 per month initially in April 2021 but with rising rates that is eating away into the cashflow. The purchase price of the property is $273,990 ( Amount financed somewhere between $205k and $220k; I am putting 20% or 25% down still keeping my options open) and I could sell it somewhere in the $380s. This is where my dilemma comes into play:
Option A: Do I keep it as a rental and have a solid cashflow of $400 per month and gain some experience of what it is like to be a landlord?

Option B: Do I sell it and take the ~$100k profit (minus closing costs and taxes) plus get my down payment back and wait for the market to cool down a little and then buy something more valuable or perhaps even 2 seperate properties (risking higher interest rates in the future)?

Option C: Do I sell it, do a 1031, buy something else now and potentially risk buying at the height of the market and maybe being upside down in the near to medium future? 

Decision, decisions, decisions any advice is appreciated!