All Forum Posts by: Brian Slater

@Maxwell Lee Well, it took me awhile, and I actually acquired another property in between, but I have decided to sell this house and look to move up to a small MF or similar. It was a great first REI for me.. I made lots of mistakes but my selection of area outweighed my mistakes, so I am going to do ok on it. I made much better decisions on my other 2 homes (I hope!) so this was a great learning experience as well.

Thanks for the responses. I am sorry, I wasn't very clear on the partnership and probably should have put it in quotes. There is no official partnership or any entity in place right now. I own the SFR in my name and would like to 1031 exchange into a MF. As part of this exchange, I would like to bring on a 50/50 partner. The TIC seems to be the correct way to do this, in order to maintain consistent taxpayer.

@Robert Hetsler, it seems like you may have found an idea that I didn't consider, having two LLC's created. I wasn't sure if a single member LLC would be considered "consistent taxpayer" for my 1031 exchange. So having two LLC's under a TIC structure is a viable option and above board for 1031 purposes?

My original concern was that the TIC with my name on the agreement would put me at risk to creditor/liability issues, should they arise. I will admit, I haven't done my due diligence to verify this statement. I am just trying to get my head around the ideas so when I approach a RE lawyer I will feel more educated and be more efficient with my time.

@Dave Foster, so you can have a TIC combined under one entity? And the cap gains/captured depreciation would carry into that entity? That is also an option, as I am envisioning this partnership to be one that could continue into other properties over time.

Hi all,

I am going through the research now on doing a 1031 exchange from a single family home where I have seen decent appreciation (and also was my first SFR, so I put more into it than I should have!). I will have a decent amount of proceeds from this sale and I would like to invest into a multifamily deal. I have discussed the idea with a friend who is also in the REI space and we are considering a partnership on the new multifamily unit. I know 1031 exchanges must be same taxpayer to same taxpayer, and it seems like so far the only viable option I have found is via a Tenant in Common structure.

My worry is that the TIC doesn't provide creditor and/or liability protection considering that the multifamily unit would be in my name and my partner's name.

Are there any solutions I am missing here, or is this just a side effect of the 1031?  

I am a ways away from making any sort of move here, I am just trying to get all of my ducks in a row before I consider the sale and do my due diligence on finding the MF purchase.  

Thanks,

Brian

Just thought I would let people know.. Quickbooks 2015 is on sale now at Amazon for $150.

This gives me a lot to think about, thanks for the help!  I don't need the cash right away, and am closing on my 2nd next week.  When things subside a bit and I get #2 rented,  I will be evaluating what to do with #1!   I like the idea of a 1031 but haven't ventured into the multi-family world just yet. 

I think the file links are broken on that link.. does anyone happen to have these documents still?

Hi All,

I am new to BP but have had my first rental SFH since 2011. While I definitely jumped head first into this deal and make some mistakes, I did have some help with some experienced people around me. I also lucked into a greatly appreciating area of Houston, so I have a good problem to ask about today. I have the real estate bug now and am looking to get out of the corporate world down the road. via real estate investing.

I would like to pull money out of my first rental home, which has appreciated substantially since 2011, in order to continue funding buy and hold rentals.  My issue is that I can potentially pull out enough equity from the home to send my cash flows into negative territory.  Is this an advisable move?  I would use the equity to purchase homes that would generate positive cash flow of course, but I am just looking for some general advice around the idea as a whole.  I realize I haven't provided much in  term of numbers, but I can if that would be helpful to evaluate the decision.  Right now, I am just more interested in hearing people's thoughts and experiences around the idea altogether.   Obviously I may have issues even getting a refi loan if my cash flows get too negative, so I will have a ceiling regardless.

I am fairly confident that the home I would pull the equity from will continue to appreciate as that area of Houston has great long term potential, and nearby homes are constantly being torn down or renovated which is driving the land values up.  I also have a great long term tenant in the property.

I appreciate any input anyone has on this! 

FYI - I will be away from the computer a bit for the long weekend, but I will definitely catch up on responses!  

Brian