All Forum Posts by: Peter Davis

Hi Dave - you seem to be extremely knowledgeble on the 1031.  I've got a scenario I'd like to run by you.  

I have a property that I Brrrr'd about a year ago and now looking to sell and interested in using the proceeds in a 1031 exchange.   

To use simple numbers, let's say I purchased the property for $50k, Brrrr'd it and now have a $80k mortgage after $100k ARV appraisal. So now if I sell the property for $100k, I assume it'll trigger a $50k gain on sale, right? But I will only be receiving $20k in cash from the sale. Is there a way to defer the full $50k "profit" using 1031 or am I stuck only being able to apply the $20k that I'm receiving in cash?

Thanks so much for sharing your expertise!

If set up properly upon purchase by creating a mortgage to yourself - I’ve been able to bypass the seasoning period.  PM me I can give you referral.  However, lead times are still like 90 days right now so it’s slow go with this lender, but at least possible. 

Do you have more specific areas that you're looking at?  Like anywhere - regions and neighborhoods can change quickly.  I'm sure some cities on paper look like strong cashflow but they might be D class neighborhoods - so buyer beware.  

Oh cool I've never heard of those pre fab ADU's! Could be a great option for you, and something I'll look into myself.

Hi Dave -

I primarily invest in Indy with a partner and what we’ve found is that the cost of new construction is hard to justify in much of Indianapolis (unless you get in the more pricey areas). 

We’ve found the return is better to buy and do light rehab or add a bedroom, etc rather than build something new on an empty lot.   

If the cost of construction makes sense in this case then you could definitely be onto something with a nice value add, just giving my 2 cents on what we’ve seen and experienced.   Best of luck to you.   

@Michael Balsitis Thanks good idea I'll give them a call.

Does anyone on here have Section 8 rentals in GR? I'm trying to figure out approx how much it pays here but not finding much.  

Any info would be helpful, thanks!

Hi Prab - 
I own a handful of properties in Indy along with a partner. So far we have kept the properties in our names but are starting to strategize about getting things under the LLC.

We do have an umbrella policy as an extra layer of protection, though. We've done all our insurance through Carl Savich of General Insurance Services. Can't recommend working with him and that agency enough! They've been fantastic and we have gotten other quotes along the way and always found Carl to be right there competitive on price but find it's so much easier to have a great agent to be more responsive and provide expertise rather than go through Geico online or something.

As for a lender, my most recent purchase (just last month) was financed through Busey Bank and the LO is Casey Wilson. And she is awesome!! Seriously, I got rejected by almost 10 other lenders but she knows her stuff and was able to get it done. That was able to be conventional but they have a ton of products that they finance and hold so no need to meet fannie/freddie guidelines. I ended up closing at a crazy low rate and low closing costs.  Honestly you have to call her.

The posting won't let me share contact info but I have PM'd you.  For others reading, I'm sure you can google search or visit the companies websites, or PM me.

Good luck to you!

Hey Graziano - I live by LAX, would love to meet up!

I'll have our contractor, Brian Barb Construction LLC, contact you. He's done a lot of work for us over the years and does a great job.