All Forum Posts by: Kurt Jones

Always. You own it, you're ultimately responsible for it.

Just looking at the numbers, if you finance it at ~5ish% on a 20 year amort schedule with 25% down, you're walking into a negative cashflow scenario. Granted you could rent the other unit and turn it around quickly, submeter the water (my favorite move) and you're looking at a different scenario. 

I wouldn't be too jazzed about this deal unless you can get the down to that $300k range. Also, is that the owner's insurance rate? That would be a really good deal on a property insured for $400k in my geography.

seems like an awful lot of earnest money unless it's a $10M deal. 

Hey Federico,

I'm a local Real Estate Investor here in Orlando as well. I'd love to connect with you and anyone else local to share some ideas and opportunities.

All in all, it's a risk reward play in my eyes. New construction has the low risk of hopefully having less initial rehab/ upkeep/ updating/ repairs etc. The downside is that you are paying a premium for this in the purchase price. The value add piece is non-existent. So you are just hoping for a positive cash flowing scenario which may be hard to achieve. If that works, then good for you and it might be an easy way to get y our feet wet. But all things being equal, it's usually not an attractive setup.

Thanks @Dave Foster! One sale closed, other in a week. May get a tailwind as my primary residence as well as sold property #1 and target property are all in Presidential disaster area. Hope not to need to use that but saw that discussion earlier too.

OK,

This is a little obtuse but just stay with me. I was in the process of making two simultaneous but separate 1031 exchanges from two SFRs to two MFs. Well, here comes Hurricane IRMA and screws up one of the target MFs necessitating a new roof which the seller refuses to negotiate on. So I'm pulling out of that purchase. Meanwhile the second purchase is OK after the storm. 

The remaining purchase is in the 750K range so by the numbers I can use the sale of the two SFRs ($145k+215k) to move into the larger MF. Here's the kicker, the SFRs were in different LLCs. Trying to find a way to combine the proceeds into a 2 for 1 1031 exchange. 

Any suggestions? I'll talk to my QI on Monday but was looking for creative ideas and experiences here. One thought is to Quit Claim one of the sales into the other LLC just prior to the closing, but need to run that one by legal.

Don't know what a fuse systems, thankfully. But my approach would be to treat it like crabs in a pot of water. Turn up the heat slowly. Bump rents a bit and see if one of them bails. If so, then update the unit and increase the rent again. It allows you to stage the rehabs while also increasing the rent and thus your NOI.

Hey @Luis Barberi it seems like this has been a bit of a proof of concept discussion here. I'm just sitting here waiting for IRMA to hit and so I had a little time browse around. Just looking at the original post, it was pretty clear that something was amiss. Seems like your site visit showed what it was. I personally steer clear of the $400/mo realm because of all the points listed above. It's just too easy to start bleeding money in that niche without the top line revenue to help you until you can turn it around.

Thanks Jeff Greenberg. I understand the no borders concept but like a boots on the ground team for the most part. I found out the hard way early on with some properties in TX that local knowledge can be a big help.