All Forum Posts by: Mike Flora

If you can find a deal in downtown SD where the HOA doesn’t kill the deal then good luck. I lived down there and my HOA was low for the downtown area, just $365, and it killed my cash flow after I moved out. I held on for a cash flow loss for 18 months and sold for the equity play. I just got lucky on that one and made money when the market jumped. I would assume downtown LA is somewhat similar to downtown SD. Lots of the same model condos and same types of numbers to run everywhere so not much big time changes to make to properties to help you out. Not sure where you will get that purchase price discount in the downtown areas but I have never marketed there so I can’t say you won’t find any deals. Just giving you my experience.

Strong post! Great advice.

Jay Hinrichs I went to Bruce Norris forecast seminar here in riverside and it was very interesting. I would recommend the book big Shifts Ahead, by John Burns, I think it’s John Burns lead economist of Fannie Mae. That was a great read with charts and data. I do believe that interest rates could fall into The 2% range like bruce stated and that real estate could be the big thing to bring America out of the next recession, whatever and whenever that may be. I also listened to bruce black tie event of “I survived real estate” on his podcast with some pretty big guys and there opinions on real estate and where things could be headed.

Bill Exeter yes thank you, I was just wondering cause I would be buying a property worth more than 100K, which I sold my property for, but buying at a lower price than 100K. I know the rules are buying equal or greater for your replacement property and my replacement is worth 160K, more than my sale property of 100K, I’m just buying it for 90K. So the 10K extra would be taxed or would the whole 100K be taxed and kill my exchange???

Dave Foster thanks for the info.

Well said! I was just explaining this to someone today, in different words, like you explained it with the football scenario. I like the way you explained it better than I did lol. Tough to get the words out straight when explaining this to people who are looking for a straight one way answer. I’m still pretty new at real estate investing compared to most but after learning the basics and starting to roll with deals you start seeing this picture you explained above and how there are so many variables to each person investing in real estate. Goals, current income, your market, what kind of current or future lifestyle you want to live, your debt and monthly expenses etc etc etc. It just takes time to see a big picture of investing in real estate and the different ways to reach your goals with your investments. Learn the basics first, take action and do some deals and always search for more knowledge and network network network and if you got your head on straight you can turn into the NFL Super Bowl champion coach.

Here in California you can have both for sure. ITS ALL ABOUT YOUR PURCHASE PRICE! Get that discount from the start when you purchase and you will have instant cash flow. Market and put in the work to find the good deals and you will have cash flow always and appreciation for the tax free refinance again and again over time.

Again, do both. Use the flip money to buy a rental using the BRRRR method. Pretty soon you will be refinancing BRRRR property one after the other and the only reason why you are is because of the flip money driving your machine! Nothing wrong with only doing BRRRR method but you can do way more by doing flips and putting that money to work reinvesting into the BRRRR deals!

Everyone has there own situation/market when looking at this. I️ work as a medic/firefighter and have my real estate business on the side. I️ don’t need the money from the real estate business to survive and take care of my family but I️ want to be financially free to spend more time with my family. THATS MY GOAL and the fastest way there is to do both. I️ use the flip money to market for more deals and to buy rental properties. This is easily the fastest way for me to reach my goals in real estate. This is an expensive business and if you want a lot of rental properties and start with little capital, I️ believe this is the best and fastest way to do it. Keep in mind the buy and hold is the best option! The flips just generate the income to purchase the investment property. I️ don’t need the flip money to survive, I️ just need it to buy the next rental property.

When you do your refinance to a conventional loan the loan will be in your name. That’s just the financing part. When you close Escrow you put the property in your LLC name. My lender knows I️ am doing this and I’m the Owner of the LLC so there is no issue of the due on sale clause. You are allowed 10 conventional loans in your personal name out here in California then you need to use commercial loans for any additional properties, so if you already have 10 loans in your name you might have an issue with having another loan in your name. Remember the financing is in your personal name and the physical property is in your LLC name.