All Forum Posts by: Rahul Punj

Hi Marco, 

I am a Realtor / investor here in Tampa... Where abouts in LA do you live... I used to live in Redondo Beach .. Beautiful! Still miss it. I have mixed feelings on STR as well, as many have pointed out. After all the extra expenses and the higher level of management needed, the net cash flow may be higher but most often is not higher enough for the increased headache unless its an extremely good location. Looks like you guys are seasoned landlords.. and looking to build a sustainable portfolio for the long term ...

my two sense would be to pick an area and start with a decent long term rental ... and as you start to get a feel for the area/cash flows/management ... you can diversify into other categories....  

If I can be any help ... feel free to reach out anytime. 

Good luck!

thank you for all good advice!!

Just wondering how did you guys pick Midwest City, OK. Do you focus on a specific area or is it because of the type of deal you were able to find?  

@Frank DiGiorgio..  Just so there is no confusion on this "The reason you can't do a 1031 exchange is because the 1031 exchange has to be officially initiated before you "sell" the first property with the gain".  The "total proceeds" of that sale have to go into a Trust account created by your registered 1031 intermediary agent.  

Nothing to do with the value of the future property.. the value of the future property is only useful in determining how much of the gain you are able to defer if you properly executed a 1031 exchange.

Just make sure you look into this and OZ opportunities "before" you sell your next property!!!!$$$

I think you said it yourself "keep...mostly higher quality homes in good areas".  Good cash flowing in bad areas are everywhere-- and there's a reason for it!  If you can actually walk away with $60K on a gross investment of about $125k within a few months, why would you even think twice about it.  

Another way to look at it is.. in a C- area the only reason to own property is for cash flow, NOT, appreciation. But if you already get next 9 years worth of cash flow, ($600 X 12X 9) = about $65K, upfront then why would you bother holding it for 9 years and managing it.

Cheers and good luck!

If you are wide open to the location, then look for articles and information regarding multifamily trends (which generally correlates with population and job growth). There are quite a few sites and articles out there which focus on cities with high population growth or job migration trends and rank them based on future rental prospects. Start there and I am sure you will find something to focus on... Good luck! 

First things first, you need to have an accepted offer and then do a professional inspection. The 'AS IS' contract basically means that the owner is not obligated to make any repairs, but you would still want to know how much repairs are needed in the short term vs. long term and if there are any hidden issues that are not visible to a laymen.  By the way, I have rarely seen a 50 year old property that doesn't need many repairs, unless it recently went through a major rehab.  The 'AS IS' contract in most states allows a buyer to back out of the contract so you should check the standard 'AS IS' contract in your state.  Good luck!  

Hi BP, I am looking to invest in my first midsize multifamily property in Central Florida area.  I would like to bring in some passive partners for the deal and I have a few friends that have shown interest but I am not sure of the best way to structure and present the deal to friends/potential partners.  I am focused on deals in the $2-$2.5MM range, with about $150K of my own money in the deal.  I will be planning to bring in about 3-5 limited partners to raise the necessary equity for the deal.  

If anyone has done partnerships of this size could you please recommend the best way to structure such a deal in terms of ownership, profit sharing and exit expectations....   I have tried to look through past forums and done some searches but I didn't really find anything specific enough that addressed this. If there is a guide / article or more detailed information available somewhere in BP--- please feel free to let me know.... thank you all !!!

Cheers!

I think since real estate is so local and you mentioned multifamily which is highly affected by what's going on in your local economy, reading the local business journals is the best way to gauge the real estate and rental trends. For example here in Tampa, FL I generally browse through Tampa Bay business Journal, Florida Trend, Business Observer etc.. I am sure there will be similar publications in your area ---- check out your local library. 

Cheers and good luck,

@Justin GoodinGreat tips! Two questions:

1. Would you have any recommendations on the resource for good quality data ?

2. Any recommendations /examples for a building a good website 

Thanks again for sharing.

Cheers!