All Forum Posts by: Patrik Kisucky

Makes a lot of sense, Thank you @Mark H. Porter! Though in my area the multi family I'm looking at are either coming vacant, or if rented, the rent is usually below the market. So I know, it'll take probably one month if not two to stabilize the property. Are you saying, you wouldn't consider those deals? Thanks.

Thank you Mark! I have connected with @Dave Foster, but currently working with a 1031 QI from the bank's 1031 department. But I'm also glad I can find people like Dave and others here and connect with all of you guys. I think I want to keep my investments local at least for the initial part of my RE investment journey, but am definitely open to test the waters elsewhere too later.

Quick question: when you say CF needs to be realized at day 1 - can you please elaborate on that?

TY!

Thank you all! Just to update you on my process: After reading your posts I agree, and will pursue the 1031 to roll the taxes towards the next properties. The proceeds that will go into the 1031 account will be around $450k.

Strategy #1:

Find one bigger property, to be able to use all of the funds to cover the purchase, or two properties and split the funds in between. My preference would be one bigger, but will depend on what market has to offer.

Strategy #2:

 I was hoping to do this step by step, meaning close on one property first, and put all the 1031 money there, stabilize it, and look for property #2. Then after a few months cash out refi the property #1 to get the money for the property #2. BUT, my 1031 officer told me, with 1031, you can only refinance two years after the closing, that is acceptable for the IRS. Which is an option, but I don't really want to wait for two years to buy more properties. Which means, back to strategy #1.

Does that make sense? TY!!

 This sounds intriguing to me @Dave Foster. Not sure that all of the steps are super clear to me haha, but I'll do my research.

Thank you all for taking the time and helping with your experience and knowledge! My apartment is in Medford, Ma, and I'm currently looking at Lynn, Ma, for the MF because of the good cash flow. I have talked to the 1031 officer and I'm good as far as the apartment goes vs the MF purchases. 

Thank you Will, appreciate your input. I considered cash out refinance of the current apartment too, but unfortunately it would result in about $600 of negative cashflow, so that's not a good option. I too thought the 1031 would be the best option but again, I'd be limiting myself to two multifamily homes with downpayment of 25%. My long term goal is to acquire up to ten multifamily properties and the more I think about it, it may be worth to swallow the bitter pill and pay the capital gains taxes to have my own hard cash to work with and use the BRRRR method to use my cash repeatedly. I have good friends with 30 - 40 years of experience doing just that, but I'm just starting myself, and looking forward to learn and shape my opinions. TY again!

Hey, Bigger Pockets community. Even though I rented two bedroom apartment for the past 6 years, I'd say I'm pretty new to the RE investing, since I used to live in that apartment before, and when we purchased a home we decided to rent it. Since we have good amount of cash sitting in that apartment, I'm ready to sell it, and leverage all the money by doing 1031 exchange IF I'll find a good deal in this market. Now I know, no one has a magic ball, on what the future will bring, but would love to hear your opinion on my options (I should also say, that I live in MA):

1. - If I'll do 1031 and split the cash from the apartment for down payments, I could afford two multifamily homes.
2. - Pay the capital gains tax, keep what's left and do BRRRR to eventually end up with more houses than just two. Though in this market when the prices are expected to go lower vs higher, the BRRRR may be tougher to do I think.

Pls let me know what you think, TY!