All Forum Posts by: Matt S.

Thanks @Nathan Platter. Really helpful response - much appreciated.

@Dave Foster

@Dave Foster - you actually responded to my post a couple week's ago regarding a 1031 - and that's what's set this in motion. Thanks again for your advice.

Hi All-

I'm a newbie real estate investor looking for some input. I bought a condo in Brooklyn back in 2011 that has seen significant appreciation over the past 6 years. It was my primary residence for up until last year when I decided to rent it out and live elsewhere. It's currently generating annual cash flow of about $14K per year. Initially, I thought this was awesome, but eventually (mostly due to bigger pockets forums), I realized this is terrible return on my equity. I have about $750K in equity, so that's less than a 2% return.

I'm now looking to sell the condo and redeploy the cash into higher return properties. Prior to the realization that I was earning such a small return, I was looking at investing in SFH or small MFH in Indianapolis/Dayton. I was also looking at turnkey in these areas. These strategies would have required $20K to $80K depending on property/rehab. My thought was that I would do one or two of these to gain some experience. 

Now, with potentially more capital, I'm wondering if my strategy should change and if there are other options I should now be looking at? What would you do if you were in my shoes? What would you NOT do?

Given that I'm only earning 2% right now, I'm looking for cash flow that will give me a minimum 8% CoC return. I'm thinking this level of returns will keep me in A/B areas with less risk. Any input/thoughts would be appreciated.

Thanks!

@Brian Adair @Darrin Carey @Paul Amegatcher Thanks. Very helpful to hear that from folks who know the area. 

If I can bother you guys for input on one more area. There's another property at 437 Alexander Drive (45403). Is that a better area? 

Looks like this thread stalled. I'm also interested in the Dayton market and I've been looking at a few turnkey properties. I'm seeing class B 3BD/1BA SFHs from a turnkey provider in priced between $55-65K. Does this make sense to people who know the market? Seems unusually low for class B, but maybe that's where prices are at in Dayton.

Here's one of the addresses: 

4036-4008 Curundu Ave, Trotwood, OH 45416

Thanks @Dave Foster @Brian Garrett@Thomas Castelli @wayne brooks

With current prices, the gain is likely between $500-550K and I'm single so I'd be left with a sizable taxable gain. Sound like I need to weigh the benefit of having roughly half of the gain tax free versus the whole gain tax deferred. Any thoughts on how I should weight these options? Or just personal preference/circumstances?

I guess my optimal strategy would be to get married in the next 2.5 years :)

Hi All-

I have a condo that was my primary residence for a number of years, but I started renting it out last May (and I live elsewhere). Is it now eligible for a 1031 exchange? Does it need to rented for a certain period of time? Also, does it matter that it's in my name rather than an LLC?

Matt

Hi All-

I'm looking for an investor friendly real estate agent in Indy with access to 2-4 unit multi-family properties. Preferably someone who has experience with out of state investors and can help make connections/introductions in the area.

Thanks,

Matt

@Jerry Brand It really depends on a couple factors I can think of. First, it depends on the whether it's climate controlled on non-climate controlled. If it's a climate controlled or a mix, you'll need less drive up access and be able to utilize more the land. But climate controlled is significantly more costly, so you need make sure there is market demand. Second, zoning laws may dictate how you utilize that land, particular if you're leasing land - there are likely some restrictions.

Definitely a great investment if you find the right location.

@Aamir Shah Where did you end up with this? Are are you still doing research? Reading your post, I feel like it's essentially the same position I'm in. I'm in an expensive market (NYC) where there appears to be little opportunity for novice investors. The more I read, the more I'm leaning towards Midwest investing where 200-300K could go a long way. However, OOS seems very risky for a new investor without connections to the area. That has led me to look at turnkey properties, however it's hard to find many positive posts/success stories on the BP forums.

This is very helpful thread. 

@Joe Impagliazzo

Question: I own one property that I rent out that now has a fair amount of equity. I called the bank that holds the current mortgage and they said the HELOC rate would by an additional 1% (Prime + 1.00%) since it's an investment property. Is this pretty standard for lenders? Are HELOC rates at banks that don't have your mortgage typically higher?