All Forum Posts by: Ricky Sanchez

It's always reassuring to hear from others w/ similar goals and strategies. My wife and I aren't looking to amass 100 doors either, just some really good ones that will one day replace our 9-5 income. Wealthy is not having to get up at 5am to go to work every day to pay the bills! We'll take peace of mind over high maintenance living. Slow and steady isn't for everyone, but it all boils down to what we define as successful in our lives.

2 Votes

Milwaukee, Wisconsin

Quote from @Bill B.:

If you aren’t saving the money up to buy another property chances are nothing will pay a higher rate than paying it towards your mortgage. (This assumes you have a credit card available to pay for any repairs.). There is virtually no reason to keep “cash” on hand for repairs.

Using your $330/mo example. The average repair will be $600 or less, MAYBE $1,000. So you pay for it with a credit card and when the bill comes you make the payment. That should cover 2 rental income periods, returning $660 to your pocket. Worst case you have zero money and you pay interest for one month on $330 for an “expensive” repair.

If you’re in a market where you have to spend money on roofs, or exterior paint that’s ctainly you can save up for. But you should have a good idea of when that will come due and if you can finance it. (Either with the roofing company, a heloc, or a personal loan.)

Either way you will probably be way ahead on interest saved unless you have a sub 6% interest rate. In which case you can get 5% on 3 month CD. Just do 3 “ladders” of 3 month CDs so you have one coming due every month for repairs. Heck my local credit union pays 3.5% on its basic account.

I like this advise, Bill B. My wife and I are considering this tactic to pay-down one property at a time. What to do with cash flow ultimately has to align with your goals. For us approaching retirement age, we want to have a mix of mortgaged properties and properties with full equity to leverage instead of relying on saving up for the next investment.

1 Vote

I've actually started looking into that today, thank you. Just trying to get favorable terms as compared to conventional loans. The deal doesn't work as well with higher interest rates. My CPA isn't well versed in 1031 exchanges and I want to know the effect of transferring title back to our names from a tax perspective.

0 Votes

Tallahassee, Florida

My wife and I have a vacant lot in Tallahassee and we're looking to use the current equity to exchange for a larger single family investment property. The lot is paid off and deeded to our LLC, but lender will not do conventional loan to LLC for the remaining financing so we'd need to take out a loan in our personal names.

I'm seeking advise from people who may have been down this road before on whether we should seeking other financing methods to go LLC to LLC or quit claim the lot back to our personal names to satisfy the 1031 exchange rules.

1 Vote

Tallahassee, Florida

All Forum Posts by: Ricky Sanchez

Ricky Sanchez has started 1 posts and replied 5 times.

Post: Best options for 1031 exchange when title is under LLC

Post: Long term investing strategy (Boring)

Post: What to do with Cash Flow

Post: Best options for 1031 exchange when title is under LLC

Post: Best options for 1031 exchange when title is under LLC