All Forum Posts by: Michael Swan

Hi Brent,

I have a realtor in Mira Mesa, where I live that I went to high school with and represented me on all the purchases in San Diego. They are now handling all the sales.  They haven't steered me wrong yet. 

Continue your path to financial freedom with passive cash flowing real estate!!! If a lowly paid school teacher can

Swanny

Hi Brent,

I have a realtor in Mira Mesa, where I live that I went to high school with and represented me on all the purchases in San Diego. They are now handling all the sales.  They haven't steered me wrong yet. 

Continue your path to financial freedom with passive cash flowing real estate!!! If a lowly paid school teacher can do this in a pricey place to live like San Diego, anyone can!!!!

Swanny

Thank you Erik for explaining how you forced appreciation.  I am finding that my rehab costs are about 5-7,000.00 per unit and am able to raise rents an average of $100.00 more that what the previous landlord was charging.  Are you planning on repositioning and selling with a 1031 exchange and get bigger and bigger complexes?  Are you planning on holding and paying off loan some day.  What is your end game?

Swanny

Hi Erik,

It should be an interesting ride for us in the next few years.  It will take my PM another 3-6 months to reposition my 4 complexes and begin increasing rents.  It sounds like you have already been down that road.  Any advice about forcing appreciation like you say?

Swanny

Hi Chris, 

Thank you for the words of encouragement.  It means a lot coming from you.  I have read many of your posts etc...

Swanny

So Dan and Dave, Right now we are buying properties that are valued an average of double what I am selling my 1031 properties here in San Diego.  If I am reading what Dave just said correctly, the additional basis that I am buying these multifamily properties and I am only putting down 25%, which is the 1031 exchange money from the properties I sell here in San Diego, the additional debt is key.  Is that correct?  The plan is to reposition and defer again in 2 to 3 years on each multifamily.  I would like to have a few 200 unit or greater complexes someday.  Please reply that I am interpreting your replies succinctly.

I really appreciate your help.  Dave have you already attempted what I am doing now.  I need someone to help that has traveled a similar route in the past.

Swanny

Sorry John,

I have a little mom and pop, that only has about 90 total front doors with my properties.  They don't want to get much bigger than what I am doing.  They are growing with me.  They manage 41 of my front doors alone.  Where is your friend's property located?  I may be able to refer you to a guy that I am interviewing Oct 3rd.  I am worried that in a few years as I keep trading up, my current PM may not want to get that big.

Swanny

Thank you Dan,

You have done this before?  I expect to trade up every 2 or 3 years maximum, after repositioning is complete.  Of course we are making improvements to each property, writing that off too.  I will specifically ask my tax specialist about your point regarding depreciation and the effect on my my defer, defer, defer, defer, and die business plan.

Swanny

Justin please check your inbox.  I am also wondering how you found Multifamily over 7% cap rates to purchase in San Diego 5 units or more, that are not in scary areas of San Diego if you know what I mean. Let me know.

Swanny

Hi again Justin,

I have lived in San Diego since 1978 and have seen this roller coaster act before.  They are beginning to give loans to people with subpar credit scores (600).  We are only about 15% from the peak on the condos I own here in San Diego.  All of this equity could vanish in the next 2 years again.  That is another reason I am 1031 exchanging these properties in San Diego.  What area of San Diego do you hold rental properties?  Have you been down my road or are you just hypothesizing?  I need to get advice from people that have already been on my path.  Let me know.

Swanny