All Forum Posts by: Patrick Sears

Hello,

Wanting start an Opportunity Fund to buy and hold SFR property located in Opp Zone. Planning on it being single-member LLC (taxed as corp, not partnership) for now to get started. From the reading I've done it sounds like any money I wanted to contribute to buy my first property for it would have to come from recent capital gains I incurred due to the sale of something (unlike a 1031, where the money can come from anywhere). Is this true? I know it's true for investors, but how about the original developers and creators of the fund?

Also, I really wanted to sell the plan property in 10 years and not have to pay capital gains tax on the appreciation of the plan property.  Everywhere I have looked just talks about eliminating the capital gains on the original investment-but no discussion on the treatment of gains on the plan assets (which is what I really want to eliminate when I cash out, instead of having to roll into a 1031).

Thoughts?

Thanks Mike. I will definitely keep you in mind when/if I take the leap...

Southside Richmond Area 50 is particularly ridiculous.  I swear there is a hedge fund buying everything and anything there below $80k!

Shera, would love to talk to you about Petersburg rentals.  Been going back and forth on it; Richmond has gotten way overpriced.

Petersburg homes are what I am talking about here.  And I'm thinking about Section 8 there too.  What are you buying and renting there, and whereabouts? I'm thinking about rolling up my sleeves and taking on the inner city low priced shacks.  Oorah!

I will check into that. Thanks!

Interesting...

I have thought about that, but I'm always worried about things like leaking Freon from pin hole leaks. Do you find yourself paying for sevice calls more when you use used equipment?

Yes, I have been looking at the newest baseboard heaters online, and they are a big improvement over the old style ones, and still very inexpensive, too.

I have also been looking at the "through the wall" a/c units.  I see some can operate as both a/c and heat pump. Wondering what the cost to operate those vs central is? 

Some type of a/c is pretty much mandatory during the Virginia summer; I suppose I could make the tenant buy their own window units, but they 1) often damage the window/siding 2) I can definitely charge higher rent for central a/c

Thanks for the replies! Yeah, I had the unit for my $6700 single zone 2.5 ton Goodman install stolen on a flip 3 days before final inspection-PISSED.  That $6700 included an overpriced "cage" that they went right through, but didn't include the 4" concrete pad I poured myself! Had to regroup, reschedule and special order a real cage from a company in Florida for $700 (it was their trade show model that just happened to be the correct size).  This thing was BOMBPROOF, and we bolted it to the pad with double puck locks that I don't think you could have cut with a phaser.  

Maybe I should consider going online and purchasing myself, since $6700 is ridiculous (but not out of line with the other quotes I got).  If you could go single-zone central for $2-3k (including monster cage) that would be much more doable.  At this price point, every dollar counts...

Hello,

Curious if anyone has any experience with using things like baseboard heat instead of spending $$$$ on installing $6k HVAC systems in their rental properties? Tired of the crack heads trying to steal the condensers for the copper. The homes I am looking at are average 2-3 bedroom 800-1300sqft one-level bungalows from the 1930's that will rent for $800-$1000, all in for <$40,000. Can't really justify $6k HVAC at this price point, but I hate window units. HVAC or mini-split might be worth it if I could be sure they wouldn't be stolen, especially in the lower-income neighborhoods...

Ideas?

Hello,

Curious if anyone has any experience with using things like baseboard heat instead of spending $$$$ on installing $6k HVAC systems in their rental properties?  Tired of the crack heads trying to steal the condensers for the copper.  The homes I am looking at are average 2-3 bedroom 800-1300sqft one-level bungalows from the 1930's that will rent for $800-$1000, all in for <$40,000.  Can't really justify $6k HVAC, but I hate window units.  HVAC or mini-split might be worth it if I could be sure they wouldn't be stolen, especially in the lower-income neighborhoods...

Ideas?