All Forum Posts by: Tanner Marsey

A lot of people do. Especially if they're not really eligible for a standard mortgage. It's expensive but if the numbers work....they work. Found it isn't as easy as it sounds though. You need to network, have your deal laid out that way your lender will feel confident that they will see the return on their money. good luck. 

Looking to sell my investment property to expand/shift focus. I currently own a 2/2 in huntington beach, Ca. it does cashflow a little bit, however, not much and after hidden expenses I probably break even/lose a few bucks a year. Also, it is built in 1978 so its going to start needing some serious work in the next few years. (sidenote: I rent to a co worker and give him a break because I know he will be a hassle free tenant. I could probably net another 200/mo at fair market value.) 

Anyways, selling it should net me 100k-ish. My initial thought is 1031 and invest in small multifamily out of state. Ideally, two fourplexes. Is this a good idea? Should I try and hold on to my property that I already have? Is having multifamily property out of state a realistic/good option as someone who doesn't manage property full time? I am also open to putting that money into something entirely different if the opportunity arises. 

Thanks in advance.

Why would you take the tax hit instead of 1031 exchange if you’re planning to acquire more properties?

thanks.  I’m pretty sure we’re going to sell and reinvest but I am going to look into the company you mentioned also.... just in case. 

yes. I have about a 2k/mo mortgage. But I pay 400/mo in hoa. Only netting about 75/mo cash flow. Which when I first started renting it I was fine with breaking even. I was more interested in having someone else pay my mortgage and seeing the cash flow once it was paid off. However, with the appreciation I see a lot of opportunity to cash flow a decent amount with out of state investing. I also feel like one unit with a 2400/mo price tag carries a lot of risk. Plus the condo is almost 40 years old. Hoping to avoid capital gains by doing a 1031. But need to look into it more. 

Good evening. Wanted to run a scenario by you guys. I have a condo in Huntington Beach, ca that I currently rent out for 2500 a month. (Slightly under market but it’s a coworker that rents it and it’s hassle free so willing to take the monetary hit). 400/mo hoa. Roughly 450/mo property tax. It’s worth about 450k. I owe 317k on it. Recently been toying with the idea of selling it and trying to obtain multi unit properties out of state. 

Pros: monthly cash flow, a vacancy won’t hurt as bad, increase in rent across all units results in a notable increase in cash flow. 

Cons: out of state. Property management. Higher/more frequent repairs etc.... 

thoughts....? Suggestions? 

Thanks! 

At its most basic level an investment(for our sake) is something with will make you money when all said and done. My theory and what will work for me(I don’t really NEED my investments to cash flow for 20+ years) is this..... 

EX.... I invest 50k to acquire a property. I rent it out for 1000/month. Mortgage is paid by tenants rent over X amount of years. Mortgage is paid off and that is when I’ll begin to pay myself back for initial investment. After X amount of years of rental income after mortgage is paid off..... once monthly expenses are taken care of the rest is profit. Along the way you can use the equity/property to leverage more deals, increase rent to create more cash flow, sell for profit, etc..... I know not everyone is looking to ride it out for 20+ years but that’s what my goal is. As with most things..... a million ways to skin a cat. 

@Justin R. I don’t quite understand.... throwing 240/month at a house that will rent for 2400 isn’t that big of a deal due to its earning potential down the road....? My goal would be to obtain 30 year financing, however, pay it off around the 18-20 year mark depending on cash flow, if it ends up being our primary residence  or refinancing to obtain other properties. 

@Sergey Tkachev all very valid points. A lot of guys I work with put a lot of money into their deferred compensation plans. (Myself included) essentially they tie up 1500 dollars a month over an average of 30 years. It’s invested and in the long run you hope to see a return.... I’d like to use real estate to supplement my pension over our deferred comp for multiple reasons. More liquid, passed down through generations, possibly start seeing/utilizing the profits before retirement.  I think that’s why the negative cash flow doesn’t worry me so much.... I’m not really wanting/needing to see a positive roi for 20-30 years. (Ideally I would see cash flow in order to pay off mortgage quicker or use the money to obtain other properties). I would consider breaking even to start a win. With appreciation, rent increases etc.... I’m sure it’d generate income down the road. 

I look at Oceanside and I see what hb was 20+ years ago. A blue collar working class community with a few rough pockets. Hard working people buying homes for 200-500k that are now worth 800k-1 million or more. I think the equity/profit will be there in the future. I know a lot of people in my current situation(young family, decent income but can’t afford a 900k dollar home) that are looking at Oceanside and Ventura as a viable option in order to raise their family by the beach. The gentrification going on in oside is pretty apparent.  

I have a lot more research and leg work to do before I make any decisions. I am currently looking at MFR properties in various states across the country and a few mountain vacation rentals in Southern California and would like to obtain one of each before the close of 2019. We will see though....

thanks so much for the input! 

I have. I’m honestly open to any neighborhoods that I can raise my family and possibly make a good investment on a property that pays off down the road. Lakewood, Long Beach, cypress, los al.... we’ve looked all over. I am unsure if buying in any of those neighborhoods makes sense to buy in right now. Still have a lot of research and studying to do. I do like the idea of Long Beach due to lots of properties with separate rental units on the lot or duplexes, however, the price point for that stuff is high and the market Is very competitive from what I can tell.