All Forum Posts by: Miguelito Fernandez

@Brett Campbell

I'm with @Scott Weaner here. $900 in rent for a 63k property is actually very good in this area. I very much prefer buy and holds for the juicy cash flow that will help support financial freedom. If it's not a manufactured or mobile home then later on down the road you can get an equity loan for it.  

I live 15 minutes away from Bragg :)

You're awesome Frank! Thanks!

Thanks Frank! Would investing in a commercial property within the allowed time frame work as a 1033 exchange? If so, what happens to the land where the total loss occurred at? I would still own it so if I ever sell it, no capital gains?

Can the funds from a total loss insurance claim be used for a 1031 exchange? Or are there no capital gains on this type of return?

Is that friend going to be living in the rental as well? If not then I personally wouldn't rent to the potential tenant. In this case the consigner is willing to accept this liability for a friend which doesn't sound very smart. Usually if your gut tells you something is off at the beginning then there probably is something wrong.

Well, was the $3,900 property taxes included in your assessment which produces $1,300-$1,400 cash flow? If not then you're looking at $975 monthly cash flow based on $1,300/month cash flow X 12/months - $3,900 property taxes. If $975 is good for you then go for it (assuming you took in everyone's input on this post). Right now I'm leaning on the 4 unit and I'm assuming you are too because you mentioned towards the end it being " in a good rental area."

I say it depends on your experience and financial situation. If you don't have any rental properties then I say go for the 4 unit. Financing will be better on your pockets with the 4 unit. If you do have rental properties and feel comfortable taking on the 8 unit and have the money for it then go for the 8 unit.If you're not paying cash then most likely you're looking at a conventional loan for the 8 unit where 25% ($56,250) will have to be put down. I hope this helps!

Thanks for the feedback Cody and Drew! My offer didn't get accepted because my pre approval letter didn't come in time. I'm totally fine with this because I was under pressure due to seeing the deal late and I rather make decisions under no pressure. It was a good deal and maybe I'm next in line in case the accepted offer doesn't fall through but I'm not counting on it. I honestly prefer something that would cashflow better so I'm kind of relieved in a sense. Thanks again for the quick responses :) 

I just wanted to get other people's opinion on this sale (I've already ran the numbers on the calculator). I'm looking at a quadplex that already has multiple offers. I will be living in one of the units and the other three will rent out for $700 each ($2,100 total rental income). The asking price is $280,000. Annual property taxes are $2,820. I'm guesstimating insurance will be around $1,200 annually. I will be using a property manager and I only have to pay for the grass maintenance. This will be a buy and hold property and let's assume I won't have to put anything up front with a 4% APY. To me this is expensive for an investment but I'm considering it because it's in a very good neighborhood. Anything thoughts? Thanks in advance!