All Forum Posts by: Michael Lyons

How do you furnish (if at all) a SFH? Mine is in a Class B neighborhood, just curious how i should furnish the house and some reasons on why i should or shouldn't

@Andrew Freed andrew this is a phenomenal idea that i never considered. i’m wondering how a $10,000 bump in purchase price on a 200k mortgage would affect the monthly payment?

@Sean Ross thanks for the reply. I thought I was right and that you can do a multiple for 1 in a 1031

@Kevin Sobilo thanks for the reply. i like the idea of cash out refi so i wouldn’t have to pay income taxes on it, and i’d get to keep the property

My question is in regard to the 1031 exchange. I'll have 2 properties in this theory that i'll lay out. I am new to REI, so i'm not sure if this is even possible. If there's something i'm missing here please let me know, but i'm pretty sure i included all relevant information. Any and all comments or suggestions are appreciated.

Property #1:

•This was my primary residence for 5 years. It is now a rental

•cash-flowing $325/month

•it has 100k+ in equity at the moment and will have general not forced appreciation over the next 3 years, i am not putting anything else into it

•the mortgage is being aggressively paid down by tenant because it’s a 15yr mortgage

• i CAN utilize Homeowner’s Sale Exemption if sold sometime in the next 3 years.

•looking at a 39% return if sold in 3 years, using a safe projected sale estimate.

Property #2:

•Strictly a rental

•cash-flowing $335/month

•conventional 30yr amortization

•will be putting 60k+ into it over the next few years, which will moderately increase cash-flow, but will dramatically increase the equity.

•looking at a 15% return if sold whenever the work is done, using a safe projected sale estimate.

So my question is, should i:

1) sell Property #1 in the next 3 years to take advantage of Homeowner’s Sale Exemption

2) keep both and either cash-out refi or HELOC both (once i have more equity in Property #2) to obtain more properties

3) sell both at the same time via 1031 exchange to upgrade to a more cash-flowing multi-unit

option 3 is my main question, is that even possible? can you sell 2 seperate investment properties via 1031 to upgrade to another (obviously more expensive) investment?

@Michael Lyons

@Dave Foster thanks for the reply! i thought it was possible, now i just have to weigh my options.

My question is in regard to the 1031 exchange. I'll have 2 properties in this theory that i'll lay out. I am new to REI, so i'm not sure if this is even possible. If there's something i'm missing here please let me know, but i'm pretty sure i included all relevant information. Any and all comments or suggestions are appreciated.

Property #1:

•This was my primary residence for 5 years. It is now a rental

•cash-flowing $325/month

•it has 100k+ in equity at the moment and will have general not forced appreciation over the next 3 years, i am not putting anything else into it

•the mortgage is being aggressively paid down by tenant because it’s a 15yr mortgage

• i CAN utilize Homeowner’s Sale Exemption if sold sometime in the next 3 years.

•looking at a 39% return if sold in 3 years, using a safe projected sale estimate.

Property #2:

•Strictly a rental

•cash-flowing $335/month

•conventional 30yr amortization

•will be putting 60k+ into it over the next few years, which will moderately increase cash-flow, but will dramatically increase the equity.

•looking at a 15% return if sold whenever the work is done, using a safe projected sale estimate.

So my question is, should i:

1) sell Property #1 in the next 3 years to take advantage of Homeowner’s Sale Exemption

2) keep both and either cash-out refi or HELOC both (once i have more equity in Property #2) to obtain more properties

3) sell both at the same time via 1031 exchange to upgrade to a more cash-flowing multi-unit

option 3 is my main question, is that even possible? can you sell 2 seperate investment properties via 1031 to upgrade to another (obviously more expensive) investment?

 Hey thanks for the question. I’ve had a realtor friend of mine try to find a good deal with no luck. The market is just super dry right now.

As for strategy, the SFH I currently live in will become a rental along with at least one I'd like to buy. I'm moving to the South for at minimum a year, so the one I'm looking to buy I'd like to keep close to the other one to make it easier for my property manager (family member). I guess the first one could be considered buy-and-hold since I've lived in it for 5 years and have done some work to it with about 110k in equity currently in it. The one I want to buy is going to be a BRRRR. The goal is to sit on both of these properties (+ any other I accumulate) for the next 5 years or so, and then trade up for either a Multi-Family or possibly cash-out refi or HELOC (the first property) and continute to buy more SFH. I hope this makes sense