All Forum Posts by: Manon Sheiman

@Sagar S. Glad it all worked out for you, and that is a great rent at that price point. Thanks for letting us know!

 @Lamont Newsome Why not look in PA if the deals are so much better and taxes lower than Jersey, like Mike Dorneman is suggesting? It's not such a long drive, after all. 

I would, makes my mouth water! I just invested in San Antonio, and highly regret it. There's no income tax, so the property taxes are sky high, twice as high as my overpriced California property. It's a bitter pill to swallow, as I now have to decide whether to unload the properties I just bought and take the hit in selling costs, or to hang on with a 1% cap rate. 

I don't understand why you are asking for a home equity line of credit as opposed to a simple mortgage cash out, if there are no other loans on it. Lots of banks will finance a non-owner occupied investment property with a first morgage. They won't give you a HELOC because it's not your home, that's where I think you're getting tripped up.

On a non owner occupied property they will generally loan a smaller LTV, 75%, and a slightly higher interest rate than owner occupied, but lower than the HELOC rate. Also, it will be fixed up to 30 yrs, while the HELOC will be variable. There are also restrictions on the tax deductibility of interest on a HELOC, as per the new tax law.

Quicken Loans, for one, offered me loans on my San Antonio rentals recently, at 5.5% 30 yrs. 

Try calling again tomorrow and let us know.  

 But Brian, can one not invest in real estate via one's SDIRA? That is what I understood the purpose of SDIRAs to be, to be able to invest in real estate. 

This is different from flipping, which would be an active business. 

I also am not clear on why someone would hold an SDIRA inside of an LLC. What would be the need for that? Can an LLC exist _inside of_ an SDIRA? Also, what would be the advantage? Thanks for the clarifications.

I have a further question: I know that PML or HML lend to SDIRAs, but will they loan to a defined benefit pension plan? I have Googled the subject thoroughly, and find no information on this. I don't know if it is because DB plans are more rare now, especially smaller ones like mine (~one mil), or if it is because no one will loan to a DB plan. I've purchased all our real estate with all cash inside the DB, but would like to get a little bit of leverage, maybe 50-60%, enough to be safe but for greater returns. Thanks!

@Sagar S. Just wondering how your situation turned out. I hope it was satisfactory. Did you get a renter? How was the service from AWB? 

@Al D. Excuse me for voicing what would be my deepest suspicions on hearing a story like this; I know nothing about AWB, but I do know that the times I've been ripped off big time in RE were the times I trusted and was too polite to ask tough questions, even if only in my mind, and then to follow up. As I said, trust but verify. And I would say it again. 

 @Kevin Sobilo, are you including the 25% depreciation recapture tax when you sell in your calculations? You can only avoid that if you 1031 forever.

@Brian Garrett Seems to me you've over-analyzed the question and have analysis paralysis. Besides, you've kind of answered your own question.

"My plan is to use the BRRRR strategy to ultimately build a portfolio of SFH's and MFR's. I feel this strategy will work best for me since I can continue to recycle my initial working capital over and over again which will allow me to scale quicker.

I love the whole idea of rehabbing to force appreciation so that is another reason why I feel that strategy is best for me.

The end goal is to have a large cash flowing portfolio which I'm prepared to work full-time at to ensure that I succeed."

Here's your answer, what you said. Do this, both SFHs and MFRs. If you buy one large MF with all your capital, you've limited your choices, to an extent. Though you can rehab a large MFR to be sure, but will you lose a part of your income stream during the process? You'd want several MFs to spread out the risk.

@Jorge P. I can certainly understand keeping this one, but there's only one thing I don't understand: What about the other triplex you mentioned that would cash flow at $4k/mo if you sold this one? Can you buy that one as well? You mentioned that it is a better deal than this one. 

Point taken. I should have said that Ontario is *to the east of* British Columbia, tho fishing is still different. ;-)

Canada is not the same country as when I was a kid in Alberta, the diversity is astounding. This Toronto diary by a newly arrived European is a really fun and illuminating read, and has a lot to do with real estate as well: http://www.canadavisa.com/canada-immigration-discussion-board/-t53118.0.html

@Jay Hinrichs @Doug Pretorius Dare I mention that Ontario, Canada is near the east coast of Canada, not the west coast, where British Columbia is located. Not that that changes your point, just that the fishing is different, also the rainfall. ;-) 

Here are the stats on median home prices for Canada. BC is super expensive, as anyone knows who has watched Love it or List it or Love it or List it, Too (my favorite, cutest couple ever, but was I sad to learn that they aren't a couple...). Any old house is about a million dollars on that show. I can only assume it's all the Asian money pouring into that region. https://www.statista.com/statistics/587661/average...