All Forum Posts by: Peter Lee

Update, I kicked them out.

Sounds harsh, but that's what I did, I served them a 30 day notice to vacate the property. No different than if they did that to me.

To be clear, they haven't given me notice that they will be moving out.  They have no problem giving me a 30 day notice.  It just would be hard if they did it during the holidays.  I know some property management companies are strict and have their leases expires in the summer and if the tenants dont' renew, they kick them out because it's the easilest time of the year here in Vegas to find tenants.

So, my tenants for one year lease is expiring the end of July and I know that they are actively looking to purchase a property.  My property is within a really good high school and school starts the end of August.

My question is, should I let my tenant go on a month to month or kick them out as it's prime season to get a tenant who would appreciate the nearby high school?

My tenants have been good, and always pay on time, but I have no idea how long it's going to take them to find a house and if they leave in November, I could be losing months of rental income as hardly anyone good moves during the holidays.

Thanks.

Hi Guys!

Any advice is greatly appreciated. :)

So, I’ve been investing in real estate on and off for about 15 years now and got about 20 deals under my belt. My day job is in the Information Technology Analyst and I just recently got my real estate license and looking to transition into this field in the next few years full time.

My question to you is in regards of perception. Most of my co-workers and friends know me as an I.T. guy, only close friends know of my real estate business. I’m looking for ways to change their perception of me and to have them think of me as a real estate professional.

So at work, we can personalize our cubical and I was thinking about printing the front of every property that I’ve invested in, so people would notice and start up a conversation with me regarding real estate.Do you guys think this would be a good or bad idea?

Pros: It would indirectly marketing myself. People may start to view me differently, hopefully giving me some credibility in real estate as I “Walk the Talk”hopefully, this would lead to some deals.

Cons: People knowing my business, jealousy, enviest, nosey, etc. Note: I don’t plan on giving people numbers, if they ask how much, I would just say a little here and there, just because I don’t want my co-workers knowing I could be making more money than them.

I'll throw it out there and say you can 1031 Exchange on it aka
tax deferred exchange. You can roll over the profits and then proceeding with an acquisition of another property within a specific time frame. Both selling and buying of the properties must meet certain qualifications.

What happens if you roll it over into an investment property, but a few years down the road, you decide to live there as your primary resident.

BTW, thanks for passing judgement so fast without knowing the whole story.

Let's hope one day you don't run into hardship, get into a car accident and had to go to your best friends funeral.

Good Bye.

Mary Cronin - Thanks for the input, yes I have read those books. As far as speculating, I'm not, I just want a nice place to live and 4 bedrooms is something I would like. As rich dad said, your home is not an investment.

To Others:
Thanks for your input, but my attorney handled the short sale and the lease. The person on the lease is not me.

Also, at the time, I didn't have the money I do now, So I really had to do a short sale. As you all know, I had to letter of hardship, which was approved by the bank.

I only recently started to invest from the money I got from a horrible car accident I was involved in.

Thanks for the moral advice, if i want more, i will go to moraladvice.com

So, about 2 years ago, I did a short sale on my house to an investor who allowed me to rent back the place for $1200 a month, which is really cheap for the house I'm in. It should rent for about $1500 - $1700.

My place is a 1800Sqft, single story, 4 bedroom, 3 car garage in a gate community in Las Vegas. I don't have to pay taxes, insurance, landscape and the $100 HOA fee. I was waiting for my credit to be restored so I can get a loan in a nicer, but similar type of house, which would be around $250k - $300k current price.

I was also waiting for prices to stabilize as it was dropping when I was doing the short sale. The investor purchase the place for $200k two years ago and there is the same model house for sale now for $200k.

I have the cash to purchase it outright, but instead, I'm buying small investment properties for cash that would rent out for $800 - $1000/month.

My question is, should I continue to rent my place out, losing $12k a year, or should I live in one of my investment properties? Then, when my credit is restored, buy my primary home with a loan?

My investment properties are not as nice, smaller (1300sqft), 3 bedrooms and a two car garage. I'm thinking my credit should be good in one year. I dont' really need 4 bedrooms, as it's just two people in the house, so it's kinda a small sacrifice, but if my credit is good in one year, does it make sense to move now?

Help!?!?! What would you do?

You also have to consider the tax deductions for both types.
When you buy a property from the beginning with a loan, you can take the interested deduction for all of it up to 1M in principal.

Where as if you one day do a cash out refi, I believe you're limit is up to 100k home equity loan, which might not matter if you don't play on taking more than that amount.

I got this information from Steve H, who is a Tax Accountant here on BP.