All Forum Posts by: Rohan J.

Hi BP, I've looked up a ton of stuff on 1031s, but haven't been able to find an answer to my specific situation. I have a single family in Los Angeles that's worth around 400k, and I want to exchange for an apartment complex in Kansas City, MO. The question I have is the following: the single family is in my name, and the mortgage still has like 200k left. If I finance a commercial property in MO, I'd obviously have to put the title under my LLC. How would you 1031 a residential that has title on your name into a commercial that would be under an LLC?

Awesome discussion! Which zip codes or sub-districts do you guys like for up&coming neighborhoods? Which communities have the strongest economic growth + commercial construction?

As someone who hasn't taken over a pre foreclosure home, I'm curious what your guys strategy is and what the success rate is? How do you reach out and what do you ask for?

Ericka Grant where can you find 50k properties that rent for $1440? I might be reading this wrong, but this sounds unreal...

Jay Hinrichs Chris Mason if not BOA or WF, which big bank would you recommend developing a relationship for purchasing commercial properties? I'm in Los Angeles but I buy in KC, Indianapolis, and Jacksonville.

53 years old is totally fine. It's once you cross the 75-100 mark that you should consider things more closely. Just add in the costs of upgrades to purchase price.

"Don't listen to the out of state individuals"  (very mature response. I actually do know Memphis' neighborhoods well, and I work with multiple agents out there.)

An appropriate response to that would be, "Don't ever take the word of a turnkey provider at face value." Since you're new to RE, I'll let you in on a little secret: turnkey providers are ripoffs and anyone who knows anything about RE investing will avoid turnkey providers like the plague.

Objectively speaking, you're paying $220k for $2200/mo in rent and $4k/yr property tax. I can certainly find a better cash-flowing rental(s) with $220k, but it appears you've made up your mind, so no worries. Best of luck

Unfortunately, this is not a great deal. To be honest, I don't even think this is a deal. I would never buy this duplex. The property price is too high (you're paying 110k per unit) for the rents you need to really show profit long term. Also, when you hit the $1k+ rent range, your tenant pool becomes much smaller, and thus making it harder to fill a vacancy down the line. If you manage it yourself and really cut down expenses, you can make a bit of profit. However, there are just much, much better deals out there that would require less work and make you more money in the long term. I think you'll end up being close to breakeven on this down the line. If you really want a duplex, my advice is to ask your agent to find a duplex in a C+/B- neighborhood for less than ~$100k, and just tell him/her that you want it essentially turnkey (minor cosmetic repairs is fine). No need to buy something so nice for your first multi - stay scrappy early in your investing career and you'll make more money and get more experience as a landlord.

Sweet deal Rob Shipley . When is the balloon payment?

@Chris T. good points. I'm certainly going to take care of the basic repairs - I'm just seeing if there's anything else that isn't too expensive, and would increase rent. I like your note about kitchens and bathrooms.

I am hoping to make it look more "modern" with the colors/styles. Don't want to overdo it though because it is still a C+ neighborhood and I don't think each side would rent for more than $600-650 (currently rented for $575).