All Forum Posts by: Account Closed

I work with their Houston location and have bought several properties from them for my rehab projects. Of course, you need to do your own due diligence in reviewing the comps and making sure the deal makes sense but on the whole I am pretty happy with the way things worked out with them.

Are there any strategies to minimize taxes on the profits from flipping? Also, is it advisable to always purchase in the name of the LLC or is ok to do it on my own name if it is a quick flip? Thanks for your feedback.

I do not intend to add fuel to the argument but I agree with JScott. I do quite a bit of consulting but am equally active in RE with rentals. I take my consulting income and invest in RE. Why would anyone say 'I make more in consulting, so I am not going to deal with RE anymore'. If managing your rentals was turning out to be a full-time job, then maybe something was wrong with your approach. I have a PM manage my rentals and I do absolutely nothing except authorize repairs, approve tenants and verify whether the rent made it to my account.

I am not getting this either. You guys are saying 10% cap is not a good deal and that someone would not sell if the building is making money. So, why would someone sell at a 13% cap rate? I understand there are value-add opportunities but again those would be ones where the buyer is taking on risk in hopes of rehabbing/increasing rent or occupancy and getting to the proforma numbers. So, for an investor wanting to invest in his/her first commercial property, a 10% cap with consistent high occupancy makes sense to me. Maybe I am missing something?

Pretty active. Do quite a bit of buy and hold SFH rentals and now getting into apartment buildings and rehab.

Have you tried looking for wholesalers in Denver and getting on their buyers list?

Welcome to BP, Bill. I am in Houston as well.

Question to rehabbers. What are some of the things you consider while determining if you want to fix/flip a property or fix/hold it as a rental? Assuming the profit margin in the flip is what you expected and the rental numbers work as well, is there a preference for either aproach? I understand it depends on what each person's preference is but I am interested in knowing general investor psychology and any possible reasoning behind it.

This is the part I do not understand. Everyone keeps talking about protecting assets etc. but what scenario are we talking about. Maybe the rental market crashes completely and I have no tenants. My typical buy and hold SFH is purchased for 70K and rents for around $1100 and yields about $400 cash flow after all expenses, vacancy allowance, maintenance, management etc. I cannot imagine a situation where the rental market is bad enough that even listing it for $700 would have no takers. That would essentially cover my expenses and yield zero cash flow but since we are talking worst case scenario, that is not so bad after all. I, personally, am fine in terms of having other assets to cover unexpected expenses but I am trying to generalize assuming I did not have that. Let us say I had 50 SFH rentals and all of them were financed, as long as the cash flow is good and I have set aside 6 months of reserves for each property, what kind of situation could actually get me in trouble?

Thanks for the feedback Will. I buy with the 1.5% rule (at least) but that is primarily because I only buy properties that were built in 2000 or later.