All Forum Posts by: Robbie McCarthy

 Thanks Sammy, good advice.

I'm a developer, landlord, flipper looking for a long-term CPA to work to grow the business by setting the optimal tax strategies in place. I have rentals in both states and am currently marketing a flip purchased in 2023 and need to determine the best way to handle the 2023 tax return plus the resulting finds from the sale of the flip.  Booker in place has full books for 2023/24. But we are missing expertise the maximise our current and future tax position. Thanks. Robbie

Thanks guys, much appreciated!

Anyone had this issue with NJ rentals and know our landlord rights? tenant did not notify us of his intention to leave at the end of his agreement  on 3/22 - we found out because they posted about their new home on FB!  Anyway we have a ton of interest from our advertisement,  so we set up open house viewings for this weekend Sat and Sun 11am-2pm. Tenant agreed. I set up all viewing appts. Now tenant saying they can't allow it as wife is ill.....dubious based on their history. What rights do we have for access and showing new prospective tenants around an occupied rental? Sure this is not unique.

I have a substantial cash sum in a money market account from a company sale. Against this I have a large LOC to use to purchase high ConC rentals and high potential flips.

I have no W2 income. I get income from a consulting business and my orphan property biz.

Here’s my issue. I’m getting stonewalled when seeking refinancing due to no W2 income. Crazy as I have enough accessible $ to pay off a mortgage or pay monthly payments for decades without ever

Working again.

Anyone run into similar issues getting refinancing? Any recommendations for lenders for guys with

Non-W2 income sources?

Thanks

Robbie

Hi BP'ers,

I'd like to gain some views and advice on a current situation:

Flip twin in desirable neighborhood purchased by auction on 11/11. Purchased $239k (all costs). Target selling price $465k. Target profit $70k. Very realistic based on comps. Target completion 2nd week Feb 19.

Current situation: Full Demo done.  All bathrooms and kitchen, flooring, trim etc. ALL removed. Currently framing out and prepping for installations of bathrooms and kitchen, flooring etc. New HVAC system in and framed.

Spent $20k. Budget balance $90k. to complete as per plan.

Issue/Potential:  A buyer has already shown interest and wants to go to contract. BUT requesting changes to planned rehab. including; no third floor bathroom, no laundry in basement and no deck, in exchange for hardwood flooring throughout, first floor laundry room, 2nd floor master, vs third floor master with bath. 80% looks net neutral.  Note: I have been clear that anything outside of project scope with no offset would result in upcharge.

Ideally I would like to sell as is and leave them to complete with the GC.  Offered  to sell at $365k to maintain my profit margin, minus a % for a fast close. BUT they do not have cash to buy and can't mortgage the property as is and do not want to go through two processes i.e. loan to complete then refi once done.

Leaving me with the option to contract with them and make changes in line with their preferences to bring to a close.

It feels risky to me. Even with a 10-15% deposit on an agreed sales price of $465, there are a million ways they could come back and challenge sales price prior to closing, I'm concerned about having their hands in the mix as I try and mange the project for quality AND profit. I'm concerned the custom changes we will make to tailor it to these buyers specific needs will damage the overall potential value of the property to 90% of buyers if there is an issue as we move forward with these buyers. Plus im in the middle of a buyer and the GC - who thankfully  I have a great relationship with. But what is my role here?

Anyone been in this situation?

Can I lock them in legally to purchase at the agreed price in a more robust way than simply going under contract so I can reduce/remove the risk of damaging the potential value of the asset to other buyers through the customization?

Thoughts ideas gratefully received.

Thanks

Robbie

$300k

$430k

Hi BP'ers,

Needing to refinance 2 properties, one in PA and one NJ, following a cash purchase. I purchased using a line of credit guaranteed from investments. current bank is offering commercial mortgage at 4.75% on my 4 unit MF in NJ. 25% down, no option to service debt as interest only. Currently service LOC debt as interest only, not under pressure to shift currently, but I will want to free up the capital for the next purchases rolling forward. Be interested to hear people's recommendations. Heard positive noises about partnering with a credit union. My objective is to remove the maximum cash, keep costs as low as possible - points and interest, build up a refinance relationship as I grow the business/portfolio and finally have the option to service the debt interest only if desired.

Looking forward to your comments, recommendations and suggestions

Thanks

R

Just closing on a 4 unit in Sth NJ, having analyzed over 100 properties to find one with the right ConC rtn. That said it's not a BRRR. The housing stock that I get sent via two realtor MLS portals set up against my criteria has appears to have more potential for straight cashflow rental than true BRRR because the markets don't justify the investment in the homes i.e. you can sink money in but the rent levels dont change much and the value of the property is still limited by the local market. ...it's easy to fall into overdeveloping.

With respect to auctions, I just took a deep breath and purchased a property through an auction site. It's a flip in PA, not a BRRR however. The price was great, but I found it a nerve-wracking process the first time because it is so different to purchasing through the traditional channel. So far so good however. There is a buyer's premium of 5%, plus I'm on the hook for ALL transfer tax (2% vs1%). that said the numbers still made sense. I'm pleased I made the jump and understand the process now because the buy is actually very simple and efficient, I had control over the offer in real time, and the final price was way below market for the size and quality of property.

@Charlie Hampton i looked at a few options in Salem with really good cashflow, mainly due to rock bottom purchase prices, but yeah, forget appreciation. Be interested to know your experience of managing a rental in an area like that. Do you have a lot of headaches with tenants?

@Stephen Kappre seen a few really good (on paper) options in Gloucester City love to know about your experience.

Has anyone started focussing in on the Opportunity Zones yet? for a long term hold the tax benefits seem to be very attractive.