All Forum Posts by: Payman A.

Any thoughts on commercial/flex space demand in Missoula?  I love MT (especially Bigfork area) and wouldn't be eager to consider with a 1031 I'm about to open.

Glad to get this info from an industry contact.  Thanks again!

Thanks and that's what I was hoping for when I had my first claim.  Now luckily that one didn't result in any premium increases but most conversations with agents left me believing that any carrier may increase my premiums based on my claims history.  Isn't that also demonstrated by carriers asking if you've had ANY claims in the past 5-7 years?  Curious to know what your experience has been.

Hi all,

Looking at another possible claim at one of the rental SFRs and though it is basically a continuation of the previous issue, it would be the 2nd claim in about 7-8 months.  Needless to say, I'm concerned about premiums on not just this policy but other properties as they are all under my name.  Would transferring existing properties to new LLCs give each a fresh insurance history and keep them separate from other policies in case of future claims as well?  

I'd appreciate your thoughts/suggestions.

Hi Bill and hope you've been well.

Since we last communicated, I decided to rehab and keep the multi-family units (a decision I don't yet know if I regret or not, long distance rehab is not for the faint of heart!).  I am however, about to pull the trigger on a cash offer I've received for one of the SFRs.  Just wanted to see if an improvement exchange would be an option given that I already own the properties I'm making capital improvements on.  FYI, total cost of rehab should end up at about 2/3 the selling price of relinquished property with total tax liability of about $80K.  So even if possible, deferring about $50K of taxes would need to not involve complicated/costly procedures (I read a couple articles that mention all is of this).

Thanks and hope you have a wonderful weekend,

Payman

@Henry Clark

Wow, thank you Henry!

I'm eager to start going through this though hope I can make effective progress as I coordinate for a possible sale/1031.

I'll keep you posted and hope to soon be in the SS game.

Best,

Payman

Good morning Henry and thanks for responding.

Here are my answers and for sake of efficiency, I'll try to keep them short unless further elaboration is helpful.

1) The right SS option is one that will continue performing at the inflation/CPI adjusted income level that I buy it at and is not at risk of devaluing due to area specific real estate prices (ie: I want to avoid areas/operations with falling demand/population).  Income is currently more of a priority but of course, appreciation potential would be icing on the cake.  

2) My wife and I currently own low rent residential property and though they have appreciated, Covid exposed us to a lot we had not experienced/expected.  I see this as an opportunity to move away from higher maintenance residential to lower maintenance commercial (not office/retail) without losing income and from what I gather to be probable with SS, hopefully gaining some income.

3) My only objective for using a 1031 is to be able to keep equity invested otherwise, I'm finding it to be a stressful and difficult path to completion.  "Luckily", I'm already familiar with long distance/absentee ownership so combined with out of reach CA prices, I'm willing to look at different markets.  I hope I've answered the rest of what applies to this question in my response above.

Let me know if I can provide other details.

Hi all,

As much as I like to proceed with caution and take my time, I'm coming up on a potential 1031 where I may not have that luxury.  

My target replacement of a multi-tenant flex/warehouse industrial property in the sub $1mm price range is proving to be very difficult to find (in the right market that is) so I'm also considering SS, which I've researched at basic levels over the past few months.  

Wondering if there are any recommendations for a crash course approach to maybe put me on track for finding the right SS option.  To clarify, I'd be an absentee owner and would utilize 3rd party management but really need to be cautious with all decisions.

I'd appreciate any thoughts or suggestions.

Hi Bill and thanks for your response.

Always good to have another thumbs up on a matter but you've now got me wondering about the "non-related party" detail. I thought it was okay for 1031 properties to be relinquished to and purchased from related parties or does the TIC avenue throw a wrench in the works? I ask because the mentioned arrangement may include my brother and/or my father.

Thanks again,

Payman

Hi Dave and nice to be in touch with again!

I appreciate the response and glad to know this is an avenue I can consider.  I'll update the thread with what we end up doing.

Best,

Payman