All Forum Posts by: Steve Mitrano

Hello All,

I’m curious if anyone has sold a property and used a 1031 exchange to purchase a property of lesser value, while also taking on less debt than the previous loan. To clarify, I rolled 100% of the proceeds into the new property. My question is whether performing a cost segregation study would be a good strategy to defer some or all of the taxes I might owe due to both cash boot and debt boot.

Thanks in advance for any insights or advice!

Quote from @Iris Wu:

@Steve Mitrano, Hi, Steve, do you mind providing an update on what you end of doing in this case? I also have few loans with flagstar and would like to explore changing from personal name to LLC. Thanks in advance, Iris

Hi Iris,

I ended up transferring ownership to the LLC and didn't have any issues. Hope that helps..

Question for MA investors...
I have two 3-family properties in two separate LLCs. I am planning on refinancing both, but I was wondering if anyone knew if had to transfer the deeds back to my name first, then refinance, then put them back into LLCs?

I know I could close the properties in LLCs if I went with different loan programs, but I'd like to keep these in 30yr fixed for the time being.

Thanks in advance!

Hey Alex,

Congrats on your new purchase!!!

In your situation, I think it would be a great learning experience to try to rent it yourself, especially where you'll be living upstairs. It would be easy for you to show, and it allows you to see the tenants face-to-face. Where you'll have to deal with/see the tenants every day, you're better off meeting each one and carefully selecting who you think is the best fit. It'll be well worth your time.

If you weren't living there, and you constantly had to drive somewhere else to show it, or if you didn't have to share a space with them, then I would definitely hire an agent to do the work for you. But try shopping around, some agents will do it for 50-75% of 1 month's rent.

By the way, I live right around the corner from the lake. Myself and a few other investors in Wakefield meet up every couple of weeks, so if you and your brother would like to meet us one weekend, you're more than welcome to.

In my experience, I can remember being surprised at the amount due at closing. But it turned out the closing docs were based on estimated numbers at first, and when I received the final version, the numbers were more accurate, and amount due was less than expected.

@Brandon Penn Congrats!!! Next stop, 1000 doors.

Anyone have any experience with transferring a Flagstar Bank mortgage into an LLC? I've had people tell me not to worry about it and to just do it, and I've had other people say the bank will call the loan due. My lawyer told me to send the bank a letter notifying them that I'll be transferring a title, but I've had other people tell me to call the bank. I figured calling would be easier, and they said I can't transfer the title or they will call the loan due. I'm just wondering if anyone with a Flagstar loan has done this in the past without any issues?

Otherwise, what are my options? Refinance into an LLC?

Thanks in advance!!

@Ian Tvardovskaya I pay the water, however the dishwasher and w/d are already there. So, it would be a matter of telling 1 tenant he has to remove his w/d, and then tell the other tenant, who just asked if she could add her own w/d, that she couldn't...and then just removing the dishwasher before filling the unit.

What's up BP family..

I just acquired my first 6 units in the Boston area and I'd like to get a few opinions on whether or not I should remove the dishwashers from the units, and if I should allow tenants to have washer/dryers. The previous landlord suggested removing the current W&D immediately. However, a tenant is already asking if she can also put her own washer/dryer in the basement.

Just looking for some advice, pros, cons...whatever anyone can give.

Thanks in advance!

I live in the Boston area and I’m looking at making an offer on a 4-unit property that has every indication it is a true 4-plex (4 main entrances, 4 identical layouts, 4 gas meters, 4 heating systems, 4 electrical meters/panels + common...but there is no record of it ever being a legal 4 plex. Just wondering if anyone has ever had a similar experience and how you handeled it? Red flag or go for it?