All Forum Posts by: Page Huyette

Thanks for your quick response, and let me clarify my goals. Sell the multi family, purchase the vacant land simultaneously with a construction loan for a new investment property  which would be equal or greater than the sales price of the multi family. 

In a few years build a second primary residence on the same lot which is multiple acres.

My research is indicating this can work as long as I take out a new loan equal or greater  than the current mortgage we have on the multi family we are selling. We plan to build simply, so if there is extra money that needs to be invested from the construction loan  to meet 1031 requirements I am hoping Those funds can go towards infrastructure of the land itself for future development of the primary.

How about this twist:  I have a rental I'd like to sell and purchase a vacant parcel. In order for it to qualify for a 1031 I'd like to:

Buy the lot and build a rental on it, with the intent to later build another home on the very same lot to be used as our primary residence. 

Guessing this would qualify but wondering if the addition of a primary SFR on the same property would cause problems.

What did you end up doing?

Interested in how this will work out.  We are currently negotiating an easement for a property we own in exchange for some land nearby that we would eventually develop.  Curious about how to place a value (or decrease in value) of our current property in order to attach a $$ sign to it.  I have some numbers in mind, but would be interested in others ideas.

Curious what most people think is an appropriate increase.  I know it depends on the property, but from what I've heard it seems about 5% increase is standard.  We have some units we acquired that are under market with a mix of new tenants and longer-term (3+ years)  

Rent for long term is $1200 with never an increase, but market is about $1400

Rent for  newer tenants in 2 units is $1350 but market is $1550

Thoughts?  

Hi all,

Some time ago (years?) I recall reading an article or blog post about an investor giving their child a wedding gift of pre-paying their first year's mortgage principal.  It was an innovative strategy I'd like to share with someone and can't find the article/post.

Anyone out there recall this post and can tell me where to find it on BP?  Your help is appreciated.

I was first an investor, then a real estate agent in that order. Regarding online or in person, it definitely depends on your learning style.  That's why both are offered.  I went the online route because I couldn't take days away to do it in person.

As for whether or not you should get a license, it really depends on a few things. First and foremost, real estate sales is a full-time job, and the fees associated with it can be hefty if you are only dabbling or doing a handful of deals. You'll need to hang your license under a broker, and pay them either a percentage of your commissions, desk fees, etc depending on how they do it. You'll also have MLS and other licensing fees, continuing ed. If you are only getting the license for investing purposes, I would say its not worth it from a financial perspective.

Also, once you are an agent, listing your own properties can be tricky as you are held to different standards and responsible for other things that don't affect you as a non-licensed person selling property. Yes, your license gets you access into properties, and the ability to speak with agents directly about information you might have trouble getting otherwise. This does allow you to be "first in the door" on some deals, either for you or investor clients, but deals on properties on MLS are harder to come by than you might think.

Think it through, otherwise you could end up jumping in, spending a lot of money, and then realizing its not a good fit for your goals.

I did end up purchasing the vacant lot I referenced in my previous post with seller financing--deed recorded at county and escrowed at a local bank so all payments are recorded and tracked by a 3rd party.  The more it is set up to resemble a standard bank transaction, the easier it will be for you to do what you want.

Some great advice here.  Even if the tenant is not a friend/coworker, etc you are giving them permission to alter a property without knowing what their skills are.  Also, once you allow them to make modifications, you may get into a situation where they give themselves permission to push those boundaries with paint colors, items rehabbed, etc and then you are dealing with more issues.

Sounds cold, but don't do favors for people with properties you own.  You are the one that has more to lose.