All Forum Posts by: Michael Dorr

@Tim Swierczek My brother and I looked into the 5% down conventional multifamily loan. After some research we decided this is the route we wanted to take. My brothers lender informed us that a 5% down conventional multifamily loan no longer exists in MN. We were told there was a recent change and that 15% was the lowest down payment for a convention multfamily loan. Any insight to this?  

@Dave Foster I really appreciate you info. Love the feedback. Definitely have to see what happens with the new tax reform. Something that could greatly effect all Real Estate Investors.

@John Woodrich Thanks for the info about the exchange. From the little sweat equity, paint and increase in market since our purchase, the house is now worth 30k more than when we purchased. You are right that it probably isnt worth the hassles of structuring a 1031 but something to think about anyway. 

@Tim Swierczek Thanks for clearing up my misunderstanding about Lender and IRS requirements. Only one of us is on the loan so we do have some flexibility here. We did not purposefully do this but I am beginning to understand that this is in our favor. Now we can go get another owner occupy low rate loan for our second investment. Knowing this, it makes sense to hold our duplex and purchase another investment.

 @Dave Foster Great input! A follow up question on the 1031 exchange. Lets say I do season long enough to take advantage of the full exchange, are there guidelines on the value of the new dwelling I am purchasing with that exchange? Min max price? 

Hey! Just wanted to introduce myself to BP and ask a quick question. Although I've been a member for some months now, this is my first post. 

I'm a newbie investor from St. Paul, MN and I partnered with my brother to purchase our first investment. We've owned for about 6 months and everything has gone smooth. Investment details- FHA, Owner Occupy, Multifamily (duplex), House hack. Since our purchase the market has started to level out but noticeable increase in the value of our property nevertheless. 1 month of sweat equity and a fresh paint job, the place looks pristine. We are living for cheap considering the area and if or when we move out and rent out the entire place there will be a nice cash flow.

My question is about 1031 exchange.

Since we purchased as FHA owner occupy, we must reside in this residence for 2 of the next 5 years to fulfill our lender requirements. However, is it possible to sell before we fulfill the 2 year residence requirement and use a 1031 exchange toward our next purchase, which would be a bigger owner occupy multifamily?

Does it make sense to leverage our duplex to scale into a bigger multifamily? Or do we hold our duplex and take out a second loan to purchase the bigger multifamily?

Thx, 

Michael