All Forum Posts by: Matt S.

I'm new(wish) to Bigger Pockets and researching cities to expand my real estate investments. I'm targeting small multifamily properties. 

I recently stumbled upon Portland, Maine. Having grown up in NE, I often hear friends/family rave about how great Portland is (great food scene, artsy, craft breweries, young people moving there)...all the signs of gentrification. I found very few posts on this city, so I'm wondering if anyone is investing there that could provide some input. Doing some preliminary research, it appears you can get close to 1% rents on MFHs, taxes are higher than the midwest (but not crazy) and I assume there's strong potential for appreciation.

Anyone out there having success in Portland?

I would start by seeing if you can distill that down into a paragraph or two, with specific questions you’re looking to have answered. From what I can tell, folks on BP are happy to share knowledge, but it’s helps to be clear and concise with what you’re asking. You can also break up multiple unrelated questions in to multiple posts. Just my thoughts to help get your questions answered.

Kurt Granroth sounds like this is more of a question about how k1s and LLCs work. Im not an expert, but this is my understanding. A k1 will give you your share of taxable income. Net Operating income is not equal to taxable income. Principal, interest, depreciation/amortization are all additional expenses that will reduce the overall taxable income (and your share of that). So in your example, let’s say your taxable income on your k1 is $5k. You’d apply your marginal tax rate to the $5k (say 30%), so you would owe $1500 in taxes. The $8k distribution (not taxable) minus the $1500 is your cash flow for the year.

@Account Closed PedFed Credit Union offers LOCs on rental properties:

https://www.penfed.org/home-equity-center/home-equ...

1 unit in Brooklyn and I own a 150 unit self storage facility in Mass with a couple partners. Looking to sell the BK unit and buy a couple 2-4 unit MFH by year end. Still very new to to REI, but learning a ton through BP.

Welcome Cameron! I live in Williamsburg and have an investment property there as well. I'm currently weighing whether I should sell that property given how high prices have gotten plus the pending L train shutdown which should limit appreciation in the next couple years. Happy to connect and chat about what I'm looking at next.

@Daniel Schiller would you mind expanding on how portfolio loans are the same as cash (from the seller's perspective)? I'm new to this and learning about portfolio loans, but I haven't seen anything on how they work (more about when you need them and how to find them). Once it's approved, are you drawing down funds like a line of credit?

Hi Levi-

I would be interested in speaking with you. I'm based in NY and looking to partner with folks in stronger cash flow markets. Feel free to shoot me a message.

Matt

Kaydn-

I'm at a similar stage as well and have started to connect with some folks in Indy. I would recommend finding an agent to help you navigate the area. A good agent should be able to answer all of those questions for you and will help you find deals. Look for agents who have experience with investors or are investors themselves. The difference is they will present "good deals" to you, which they will know how to assess, as opposed to just setting up a search that will give you 1000+ properties to look at...not helpful at all for an out of state investor.

There are a handful of companies I've come across that perform all the services an our of state investor needs (agents, GC, PM). It's probably worth looking at them and weighing that against trying to build a team remotely. @Josh C. ' s company does this - I haven't done any deals with them yet, but I've been working with their agent (Cory) who has been very helpful in understanding the Indy landscape.

In terms of getting a sense of prices and rent, you should be able to leverage Zillow or Realtor.com to get a general sense of those numbers. 

Thanks for all the responses. Sounds like taking out the equity through selling or refinancing is the way to go. A little more info... The condo is in Williamsburg, one stop from Manhattan via a tunnel under the East River. The tunnel is scheduled for 1.5 years of repairs starting April 2019 (it was damaged during hurricane Sandy). This essentially cuts off the area from Manhattan where most people work (google "L train shutdown"). Over the past year, we've seen prices plateau and even drop marginally. I don't anticipate any appreciation during this period which will until the end of 2020. So given that prices will remain stagnant or decline slightly, and rental income will decline (rents have already come down), I'm leaning towards selling.

@Dave Homyakundefined The 1031 would defer tax on gains above the primary residence exemption. Apparently you can do both (I found this out recently via Dave Foster).

@Account Closed What does "QI" stand for?

I like the idea of syndication which seems to be the consensus option on this thread.