All Forum Posts by: Rahul Singh

@Mindy Jensen

Thank you Mindy for great insight and clarifying 1031 exchange for me.

You're correct.  I meant to say Sellers market.  I guess wishful thinking was stated above :)

We are qualified for a house in our desired neighborhood so that's not the bottleneck for us.

My concerns with renting our home are:

-Losing out on the equity if there's another collapse especially since it's not in the nicer neighborhood which is more likely retain its value.  Not that we would be in a bind but it's always nice to have flexibility and sustain the value as much as possible.  Am I overreacting here?

-Aren't there any tax benefits for having a larger mortgage?  What about your home's appreciation over time?  

Your thoughts? 

Hello Everyone,

I need your input on a decision that I'm struggling with.  We were able to get a great deal on our current primary residence back in 2009.  Initially we bought it to flip it but after renovating and marketing being dry, we decided to use it as our primary residence.  It's great home and in very central location in the bay area.  We can easily rent it out and have great cash flow.  The only issue is our school district is not the greatest so we are having send our kids to private school.  With our younger child also starting school this year, our mortgage and their tuition would be about the same now.

We also have good amount of equity in our home but I'm struggling with what to do.  Our choices are:

-Rent our home and rent in a better neighborhood with great schools.  We would be saving about 75% on our kids tuition.  Another benefit is we would be living in our desired neighborhood.

-Sell our home.  Put our equity down using 1030 exchange to maximize our gains.  Purchase a home in the neighborhood where we want to be.  Our mortgage would most likely be more than our current mortgage and kids school expenses combined.  But I guess there would be some tax benefits of it?

-Sell our home and invest the equity in a business that would generate passive income.  Rent in the neighborhood that we desire.  

My key concerns are 

-it's buyers real estate market in our area.

-I have a feeling that we are going to have another another real estate bubble pop at least in our area given how quickly the prices are rising based on the past corrective real estate cycles.  Not to mention unemployment rate being 4.4% in our area well below 7.3% state wide.  It will rise leading to some financial setback for some folks.

Given the concerns of real estate bubble, I like the idea of selling my home at a premium now in the sub-par neighborhood and purchasing a home in a great neighborhood which will be less like to see a large dip as historically seen here as well.

Please share your thoughts and opinions.  Your input is much appreciated.

Thank you! 

I'm getting ready to make my first move. I'm interested in getting your input on few items:

1. How do you have your LLC setup for your investment properties? How does having investment properties out state impact it? Any other advise you may have for me.

2. What kind of insurance coverage do you carry on your properties? Other liabilities risk mitigation that I'm may not be aware of.

3. How do you go about evaluating a PM?

4. Any issues with transferring a property purchase with personal financing to LLC. Can the lender force or exercise "Pay in Full" or some clause in the loan? How would recommend getting round it.

Thank you in advance. I appreciate it.

@Ali BooneThank you!  I'm a computer engineer; currently in cloud computing arena.

@Dmitriy Fomichenko

@Peter MaclennanThank you both for great info.

@Paul Timmins

Thank you for warm welcome with wonderful set of information.  I appreciate it.  That should keep me busy for a while.  

@James Wise

That was my understanding as well.

Do you guys have any input on out of state investments?  What are some of the pitfalls there?  

Hello Everyone,

I'm full time engineer with two young kids looking to invest in real estate.  So as you can imagine my bandwidth is pretty low but I'm a restless person which hopefully can help me manage the load.  I always knew that I wanted to get into real estate but wanted to have some extra cash in hand prior to starting my venture.  Eventually I want to invest in positive cash flow rental opportunities but I'm really interested in flipping properties or wholesale at this point.  Not sure if it is realistic given today's housing market in my area and whether it's a wise route as a newbie with zero experience.  Another big issue is the return on investment of rental property in my area; it doesn't quite make sense to me as the property values have sky rocketed again and I'm concerned about another bubble here.  Not that I'm overly concerned with that as I will be in buy and hold pattern there but it's always nice to have flexibility to exit a property without lose if you need to.  I have around 60K or so to invest.

My short term goals are to get a real estate license in the state of California to really educate myself.  At the same time, I'm starting to visit local property auctions to get a sense for what's out there.  I'm having trouble identifying a good source for foreclosures and local auctions.  I have looked into the usual suspects like RealtyTrac and Foreclosure.com but I'm interested in your feedback.

I'm really interested in input from others who have gone through similar concerns starting out.  What's the safest approach here without tying down my capital?  Please point me to other discussions where my question has been previously discussed in detail.  Thank you all in advance.  I will be going through forum and getting involved on the discussion as well.

Look forward to learn from everyone and sharing my experience with you all as well.

Cheers..