All Forum Posts by: Logan McKay Zylstra

Agreed. Look at nearby properties and see their nightly rates and how many nights are already booked. This will give you an idea for STR income. For MTR look at furnished finder or I know STR platforms have the optionality for longer stays.

Coming from someone who makes a living off of helping people buy and sell properties, I would recommend holding onto the property for the time being. 

With where interest rates are at, your purchasing power is much less than where you bought. In addition, if you are in a good location in SLC, let the property continue to appreciate and then roll that equity into something even bigger. You also have to consider the capital gains tax which would eat a substantial chunk of your equity.

Bonus-

I recommend rolling the equity into one bigger property. I like to trade up and get as much revenue under one roof as possible (a simpler business model in my opinion).

A property that just came on the market in SL County did over 100k last year. I can shoot it to you if you’re interested 

Hey I have someone in the Nashville area. Shoot me a PM

@Account Closed

Same scenario here. Would love to connect.

I usually say it is up to the investor in almost every scenario, but I DEFINITELY would not sell. There is no reason to cut a check to the IRS for that size when it is not necessary. If you are after the lump sum of cash, do a cash-out refi. While rates aren't the best anymore, the mortgage interest is still deductible and you avoid the capital gains tax.

I also agree with Sam, a 1031 would delay the tax burden.

@David B.

You're not wrong about it being harder to find cash-flowing assets. Higher interest rates and the appreciation in home values have made it more challenging to find cash-flowing assets.

Investors typically like to put as little down as possible for a few reasons. The first is that interest on a mortgage is deductible. Next is leverage. This kind of hits the point on what you mentioned about being able to do more deals with less money. However, leverage also allows for appreciation to yield a higher return. For example, if you buy a house cash and it appreciates 5% in a year your cash on cash return is only 5% (excluding cash flow and expenses for simplicity). However, if you buy a house using 25% down (1/4 of what you used in the previous scenario) and your cash on cash return would be 20% in one year.

It really comes down to your personal investing style and risk tolerance. It seems like your goal is cash flow, so don't be afraid to put down more money.

Q2. What do you mean by vulnerable? Yes, you may be upside down on what you paid for the property vs. what is worth, but if you don't need to sell it for the long term there is no risk.

Q3. My investors are not seeing cash flow for the most part. They want to put their money into assets where inflation will not eat away at their buying power.

Q4. My target was 10% for a long time but now I am looking to buy in the path of development and just hoping to float the property with the rents.

If you are just going to use your license for your transactions, it is definitely not worth it unless you are buying 5+ properties a year in my opinion, and being the buyer it doesn't cost you anything to hire a realtor.

If you do it yourself instead of hiring a GOOD realtor (lots of bad ones) you are losing out on the expertise of someone who has a pulse on the market and knows their stuff. You learn nothing about real estate investing while doing your courses. In addition, real estate school does not teach you how to actually take a transaction from start to finish so you would have to figure that out.

If that doesn't deter you, I used Stringham for my classes.

My guy is Troy Jensen. I can't give contact info in the forums but happy to send you his number in a PM or you can google him. Best of luck.

@Ryan Lloyd

Cash flow in Utah is pretty much nonexistent right now, unless you do major rehab or get a great deal.

The investors I’m working with are willing to float properties for the appreciation and wait for the rents in Utah to catch up in the next year or two.

Inflation seems to be everyone’s main concern right now. The logic is that it is better to own an appreciating asset than have you money losing value literally everyday in your bank account.

I believe strongly in our market, but if you are looking for cash flow specifically I would explore other markets.