All Forum Posts by: Luke G.

Two come to mind.  This year closing on a student rental duplex, due to my lender being slow we had to delay closing by 2 days, seller was fine with it.  He thought he needed to go clean out the garage and burn some garbage.  Supposed to close on Monday, we closed on Wednesday.  Tuesday he went to go burn garbage and proceeded to burn the garage down.  It was an old crappy garage that I was going to get rid of anyway, but now what?  My realtor negotiated a 12k credit at closing and it'll cost me a couple hundred bucks to rip it down, ended up being a nice win.  

Another one- I get monthly reports back from my PM regarding what was done and for labor hours billed.  One description that was new to me was getting billed an hour for removing a dead cat in the middle of the living room at an evicted tenants house.  

I've asked around in my real estate circles and nobody seems to have a definitive answer (including my CPA or the 1031 intermediary). I'm currently selling 2 properties owned by 2 different LLC's (I'm the sole owner of both). Am I allowed to do a 1031 exchange into one property following the sale of these two properties even though they're owned by different entities? I'm fine eating the tax if I have to, but if I'm allowed to 1031 I'm trying to in this case. I just want to make sure I'm not going to get hit with an unexpected tax bill later.

It's snake oil man, don't overthink it. Just pay extra on the mortgage, this has been beat to death on here. It's robbing Peter to pay Paul, just pay extra on the mortgage if that's what you want to be rid of. It may "work", but so does just making extra payments without all the complication or risk of the bank calling the HELOC due.

I'd rent out as well, we're doing a bunch of upgrades to our cabin and the first year's profit is paying for pretty much all of it.  Do the renovations in the offseason.

I've done both but I prefer just letting a realtor sell it, in the couple cases where I didn't after the fact I think they would've ended up making up their realtor fee with a higher purchase price.  

If it were me and you're planning on putting them on 30 year fixed, you're going to need to do it individually.  For the most part portfolio lenders with commercial notes can't do that 30 year locked product, but they can do one larger loan across multiple properties (won't be as good of a rate).  If you go the fannie/freddie route they won't allow you to put multiple properties under one loan, so you'll need to do them individually.  

This is just me, but what I would personally do is pull out the ones that can handle 70% LTV and put them on a 30 year and open a LOC against the others that you'll have access to and use for short term money (make cash offers, rehabs, etc) with the intention to pay the lines down pretty much immediately. That way you're only paying interest on the money you're using with the LOC's and you have that 30 year locked in rate on the others so you're accessing some of that equity as well. Just my .02, it's worth what you paid for it :)

This is a really bad idea. You may figure out a way to do it once, but if you go back on your word and it blows up in your face your name will be essentially poison in most REI circles.

Price labs is the best money I have spent on my STR to this day. Takes away most of the thinking with pricing, the first booking when I went live paid for Pricelabs for the first 2 years.

My 3 mentors have been in business a combined 95 years and they're still buying for what it's worth.  They obviously took a step back with down-cycles, but long term debt and sound investing principals got them through without having to sell anything, which is also my train of thought when investing.  

We will just have to agree to disagree, cash will be king if it falls off a cliff like it did back in '08, but what if it doesn't?  You are losing close to 7% on the cash you're currently hoarding with the current rate of inflation.  If you're well capitalized and have significant reserves I'd prefer to lock in long term debt with today's dollars and pay it off with future dollars that are worth less.

The amount of capital gains as well as depreciation recapture that many investors would have to pay if they sold everything into a cash position is astronomical and should be a part of the decision.  You sound like you're comfortable with what you're doing, but you don't know with absolute certainty that it is going to fall off a cliff, just like I don't know with certainty that it's not.  Plenty of ways to skin a cat, good luck man!
  

@Symone Gordon he's making the same prediction 1000s of other people have also made on this site in the last 5 years.  Fun fact though is none of them have been right.  The current market is not looking like 2008, inflation is rampant, interest rates are as low as they ever have been, and banks aren't giving out a jumbo loan to every person with a pulse; we may be due a correction or a plateau but really nobody knows when that's happening (even if they tell you they do).  Run your numbers and buy what you're comfortable with, if it takes a step back make sure you can survive it until it recovers.