All Forum Posts by: Mike Rodriguez

I have a house thats worth $535k paid off. I want to sell it to get some cash, however, I don't want to be stuck with the timelines of a 1031 exchange. Is it better to just refi out as much as I can and then sell it so all I have to do is pay tax on a small portion of the profit?

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Hi All! I have a property that is currently worth $530k and is paid off. It's reached it's peak in value and rental value so I want to take advantage of the market and sell it for top dollar and buy something else. What would you do?

-hold the property and refinance $200k of equity?

-Pay the cap gains tax and be cash heavy for a buying opportunity with no timeline?

-do a 1031 and hope to find another deal in a super competitive and overpriced buyers market and be on a time crunch to find it?

1 Vote

So right now I don't have any accounting software setup for it. It's just one property (5 units). Do you recommend quickbooks or similar for just starting out? Also, when you have vacancy, how are you entering your expense into the software? As in, are you dividing all your utilities,lawn care, etc on a daily rate and multiplying that by the daily vacant rate?

Looks like in my numbers I only accounted for 4% Vacancy :(.

Originally posted by @Dan Maciejewski:

Yes. Vacancy is a cost, just like CapEx, R/M, debt service, property taxes, insurance, utilities, management, marketing, etc. . . You need to factor all of those in in your initial estimate to see if the property makes sense as an investment. Then budget for them after purchase!

Otherwise you will have a bad time if there's an expense that you didn't budget for! Whether it's vacancy, or a broken dishwasher, it should be in the budget, then tracked in the P&L for next year's budget!

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Hi All! When it comes to vacancy, what are you doing with the loss for that while your unit is on the market?

For example, I have a unit renting for $950 a month, which means daily it is around $32. If a week is vacant, that's $224 that I lost! How can we recoup that?

Or is vacancy just a cost of the business?

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After every tenant turnover, do you paint touchup? Or leave it for every few years?

What work do you usually do on the unit to maintain it after a tenant leaves?

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Hi All! I wanted to know your input on this strategy, I've done a couple of small projects, dealt with tenants etc. and also have a w2 job which I want to quit and do this full time.

Instead of purchasing one big hotel, I want to purchase small duplexes, triplex and fourplexes and airbnb them (it's allowed in my area). To keep funding the next purchase, I want to refinance the previous purchase and go into the next one.

However, is this overleveraging even if it's in the correct locations? Can the income from this replace a w2?

Is airbnb a long-term strategy or short term? How do I know if I can pay myself a salary from this?

1 Vote

All Forum Posts by: Mike Rodriguez

Mike Rodriguez has started 9 posts and replied 16 times.

Post: What does everyone think of this strategy?

Post: What would you do? 500k Property

Post: Vacancy Rates? What do you do?

Post: Vacancy Rates? What do you do?

Post: Tenant Turnover - What Would you Do?

Post: What do you think of this strategy?