All Forum Posts by: Matt J.

Quote from @Bradley Buxton:

@Matt J.

SD has some great weather and opportunity. Another consideration is that if you do a 1031 exchange back out of CA the state is a "claw-back" state so CA will try to get their capital gains eventually. There are good QI's that will help you navigate the options.  

 Thanks Bradley. I did see that mentioned in a LinkedIn post actually today, the clawback rule. 

I went through Colibri recently to get my real estate license. They were OK. I wouldn't say you're going to learn as much going through an online course as you would an in-person one, but it is a lot more convenient. 

Like someone else said, your RE licensure exam is going to touch on creative financing in a very surface level way, if at all. To learn creative financing, you'll want to get involved with your local REIAs, listen to podcasts, follow people who are educators on creative financing, etc. 

Hey everyone! I've been investing in real estate since 2017 and have seen that the real money or wealth made in this field is in equity build up moreso than in cash flow. San Diego, to me, seems like a market that still has a lot of upside due to the building constraints in the area, the desirability, and the strong economy. 

What are some tax considerations or other legal issues to keep in mind as an out-of state investor investing in this market? Obviously I'm not looking for thorough legal or tax advice here, but just things people have come across in their experience. 

I've heard of people having pretty good luck with mid term rentals in Rochester because of the Mayo like you said. There are also other large hospitals in that area too, so you aren't just relying on Mayo. 

As far as property managers and realtors go in Rochester, I haven't done any business down there but if you look on BP next to the "Build Your Investing Team" section, you should be able to find some folks in the area. 

Quote from @Brett Jurgens:

@Jay Hurst

Thanks for responding

3.75%, 30yr fixed

Like others have said, with that interest rate your best bet is probably to do a home equity line of credit (HELOC) to put towards an investment that you can quickly recoup your initial investment on. Like a flip, or a value add rental property purchase (like a BRRRR). 

Quote from @Brittany Kuschel:

Hi @Noe Alonzo Nesmith Jr

I am a full-time real estate Broker and part-time investor in Northern MN. My brokerage serves Northern MN and Northwestern WI. Reach out anytime if you're interested in connecting and discussing the multi-family market in Duluth MN area or surrounding. We love working with investors, and serve many clients that are out of state or semi-local.

Brittany Kuschel

I can vouch for Brittany. She is incredibly knowledgeable on the Twin Ports market and real estate investing in general. She is great at what she does!

We all know most markets in the country are suffering from a huge shortage of affordable housing. I would assume there are some people on here who have gone down the path of developing affordable housing projects for their respective markets. 

How does the capital stack look on most of these? Are you mainly partnering with local municipalities and grant programs and then bringing in a lender? Private investment in these projects seems like a challenge as I can't see how they'd get paid back on their principal. 

I'd love to hear how people make these projects work as I want to help provide more affordable housing for the markets in our area in the Twin Cities, Duluth, and the Brainerd Lakes Area. 

Quote from @Benjamin Aaker:

Sounds like a great idea. Of course, you need to be certain that your municipality will allow short term rentals. I'll also assume your 35k net operating income number is solid.

Easiest way would be to self finance the rehab, then get a commercial mortgage on the finished property. That'll require you to determine how much the rehab will cost and pay that up front. Then you will need to have a cash out refi to pay yourself back. To get this cash, you could obtain a line of credit on the property as it stands, assuming you have enough equity.

If you don't have the cash or equity for that, you could possibly do a cash out refi on the property now, using the proceeds to do the build.

You could also get a bridge loan. Talk to the commercial banker at the bank where you have your current mortgage. This will also depend on the equity you currently have in the property.

Nearly all of these options will hinge on your ability to produce that level of income once complete. I strongly recommend you write up an eye-catching pro forma on what you intend to do. This is a lot like a business plan. People often skip this and get denied by the bank. I don't know your level of STR experience, but having some would be a big help. This pro forma is also a resume and is your way to show the bank that you can actually make it work and are worth lending to.

 Since we are in the form district, we will be allowed to run it as a vacation rental. We did the same thing with the house down the street, so that helps. Don't have the cash or equity at this point to do the cashout refi, otherwise that's the route I'd prefer to go. 

Good idea on the pro forma/business plan. We run two other vacation rentals and I could include the numbers on those as examples of how we've done to show the lenders that we can operate a vacation rental successfully. 

Thanks a lot! 

Hey everybody. We own a duplex in a city where there is a cap on the number of vacation rentals allowed EXCEPT in certain areas which are called form districts. This property is in one of those form districts. It is currently operating as a long term rental, but the income would at least triple if we were to convert it to a short term rental. 

We own a single family house on the same road, just 4 blocks away in this same form district that is on pace to earn us $35,000 after expenses in 2024, so am confident this duplex would perform well also. Our plan is to convert it from a duplex to a single family home, and I'm just wondering what financing options are out there for a project like this. 

Very general question as I know Phoenix is a huge market, lots of differences in neighborhoods. But overall, what is the viability of purchasing a vacation rental in the Phoenix MSA? Are there certain markets with looser regulations than others? 

I had seen elsewhere that Arizona had put out some legislation making it illegal for cities to ban STRs but has that been changed/overturned? 

I currently own and operate two STRs in Minnesota (1 in the Brainerd Lakes Area and one in Duluth) and think owning a vacation rental in a market where the winter and spring are the busy seasons would be nice to offset my current slow seasons being in northern Minnesota.