All Forum Posts by: Sean H.

Hello BP,

My question is how do i evaluate a property that is zoned commercial/industrial that has 2 buildings on site (1 studio and 1 residential)?  

Property is in a small town but in a great location amongst other residential buildings.  One building used to be rented as a dance studio (1000 sqft) and the other building has 2 residential units (both 2bd/1bath).  Both are in need of extreme renovations, but as Brandon says every property has the right price.

I am used to evaluating residential buildings as a starting spot in relationship to the "1% rule", but with this commercial building it has me a little perplexed.  Being a small town, i don't think there will be a lot of appreciation over time and especially with COVID, i think getting commercial tenants into the studio will be a challenge.

Any suggestions/recommendations?  Things i should specifically be looking at or advise you can give?

I hope all you have an Awesome day! Thanks!!

What has been your experience investing in a small business?

During this pandemic, I have worked with skilled trades that help with rehabs on houses. Some of them are just starting off, but already have some good processes in place. I was going to ask them if they are looking for any investors as a way to grow their business, which could be a be a benefit for them. For me, we know it is difficult to find skilled tradesman, so this would give me options for future work on rentals.

Thoughts or advise?

Thanks as always BP!!

I have an investment properties in KC; would recommend Ad Astra Property Management. PM me if you need a contact.

Hey BP community,

So that is the question, should I look to refinance a property during these historically low rates? I have Midwest property that is less than $100k but the current loan has a 5% interest rate. With rates in or below 4%, seems like a great idea until looking at the numbers.

Assuming it cost around $3000 to refinance, even getting a new loan at less than 4% it will take 5+ years to make that money back.

Based on these numbers, it does not appear to be a good idea to refinance...but figured I should ask the experts and see what other strategies people are using for Midwest investments that are less than $100k.  Instead of a refinance, are people taking money out through HELOCs or other type of home loans?

@Johanna R.

I work with Ad Astra and if you are looking for the PM part of your team; I would highly recommend them.

I feel as those maybe i am being tracked by google, as i was just looking into this exact topic!

At least in my area and after doing some research with the city; appears that if any house is currently being used as a Multifamily (3+ units)....or can have documented use (such as a utility bill) of being used as a multifamily in the last 2 years, then it  can continue to be used as a multifamily.

However, without these attributes, then the town ordinance does not allow for multifamily and everything in town is zoned as single family (SFR).

Lastly, a special use permit can be submitted to allow the house to be used as a duplex.

So, based on Brandon's questions and the responses so far, looks like it is city by city dependent.

Not sure if you can take a loan on a previous 401k; but that would give you starting money for RE.

Not sure if you can take a loan on a previous 401k; but that would give you starting money for RE.

Overall, the 401k Is a good thIng but like most thIngs I lIfe there are +/-. Because there are a 401k with company match, some that offer brokerage accounts for more flexibility, sometImes good optIons to pick from (like low cost index funds, tax advantages, and even tge ability to take a loan (to purchase real estate!), I believe the positives far outweigh the negatives. most people do a very poor job at planning for retirement so a vehicle that helps people get there, even if there are definate disadvantages like fees, is a better option than not planning for retirement at all. Or at the end of the day, diversify and use all the financial tools at your disposal.

Recently on a BP podcast @Brandon Turner mentioned that he was able to take his apartment unit, 1031 exchange into the mobile home park that he did with a couple parnters.  He mentioned that because you are not able to change entity structure when doing the 1031 that he had to do some type of other structure with his partners.  I am looking to do something similar in Iowa where I want to 1031 exchange a property (that I currently own) but use the proceeds on a deal with a partner of mine.  Anyone have any details of how to go about this transaction?