All Forum Posts by: Syed Z.

@Alan Grobmeier yes! That too

A good reason to refi instead of selling would be avoiding the capital gains tax you would pay upon selling, if the property has appreciated significantly, which it sounds like it has.

Seems to me like being able to do a 1031 exchange is possible and would be great however the stars have to align just right for a deal like that to be successful. The complicated logistics of it make me feel like just biting the bullet and selling the properties to get the equity out of them to use for BRRR or to buy and apartment would be the best approach.

Refinancing to get the equity out is an option to but the properties would barely cash flow at that point and the properties attract difficult tenants that are a hassle to deal with... not worth it for the low return in my opinion.

Loving the great feedback from the community on this! Really appreciate it.

@Joe White, @Morgan Klein I agree it makes more sense to sell to a home buyer rather than an investor. The advantage with an investor might be that if I really wanted to do  3 to 1 1031 exchange the investor would be more likely to work with me on the timing of the closings. 

However the difference in price I would get from an investor vs a home buyer would probably make it a wash... I could just not do a 1031, sell them to a home buyer instead, pay the taxes and end up in the same place.

Thanks Guy, in your experience, what makes MFR investing harder than SFRs?

Hello Fellow Investors, I am new to this community so let me introduce myself briefly before jumping into my question. I am a part time Real Estate Investor, a Real Estate Agent and a full-time IT Consultant.I have been slowly acquiring Single Family homes and Town Houses in Minnesota since 2011. 

Some background to my question: Some of the properties I own have appreciated significantly . Three of them in particular, have a combined equity of at least $285000 sitting in them. I wanted to tap into this equity to start doing BRRR to expand my portfolio or do some flips, so I went to the Major Bank that I have the mortgage through and applied for an equity line of credit on them. They rejected the application and said I have too many total mortgages (7) for them to approve a LOC on my rentals. So I went to some smaller local banks, and they told me that for them to give me a LOC on the properties I would need to refinance the properties with them first, at of course a much higher rate than what I have on them right now. One other smaller bank told me that without refinancing they would only give me a $100K LOC on my entire portfolio (the three properties with the $285K in equity plus a couple of other properties that have less equity).

So I have decided to switch gears and make the jump to apartment investing instead. Ideally I would like to do a 1031 Exchange on the three properties  mentioned above to purchase an Apartment building. My question is whether its possible to do a 1031 exchange on an Apartment building using 3 separate town homes?

If so, how would it work logistically? Do you think an apartment owner would accept a offer contingent on the sale of the 3 separate properties? Also the properties would need a little face lift before I could even sell them so the process would take more than a few months. Plus they are all occupied by tenants, so I would need to get the tenants out somehow, fix them up a bit and the sell them within a certain period of time to make this happen.

Any suggestions on how to go about doing this or how people that make the move from Single Family to Apartment building  investing accomplish this? Your experienced or educated advice would be greatly appreciated.

Great story, thanks for sharing!

Hi I bought the book on managing rental properties and the book on rental property investing on Audible, can someone help me get a code for the bonus materials?