All Forum Posts by: Tara Kinney

If you already have access to $40K for a downpayment, I would start with that and leave your property alone.  Use your free and clear money to get started, when you need money for your next property, then you refinance this property to get cash out.  Make sure the terms and numbers work with a mortgage so that you are still cashflowing. :)  That's my personal opinion.  Congrats on the house!!!

I owned a rental property in Moline a couple years ago.   Rented well....no issues.  Sold it for personal reasons (kicking myself now).  But yeah - other than the Illinois taxes, Moline is a good city to own properties in, just research your neighborhood. :)  Any place in the QC is pretty good right now for getting your rentals filled from what I am hearing.  Just bought a duplex in Davenport....so will see how quick I fill it, have some minor maintenance to take care of then should be advertising in a week or two for it.

I'm an investor in the Quad Cities.  Please let me know if you have any going on market.

Thanks!

Hi Derick, 

We are having an REI meet up tomorrow from 6-8pm at StarDust in Davenport, IA if you'd like to meet some investors in the area! :)

Have to work LATE tomorrow but hope to come down as soon as I'm done with work!  Looking forward to seeing you all again, and hopefully see some new faces as well. :)

Interested!!

Thanks...I absolutely did my research and understand and did qualify for the 1031 exchange.  My lender told me that I could only have 4 mortgages in my name - so that was my only concern.   However, after looking at all the numbers, both in the real estate side and on my personal side - I ended up cashing out my 1031 exchange to pay off personal debt (car loan, equity loan and student loan).  

Yes...I know I'll have to pay capital gains tax now and that sucks. But I decided that it would help me feel less stressed out personally...and it will be freeing up an additional $1500 per month - which if you figure - COC ROI = 20%. So that beats most of the real estate deals I've been looking at...and can get me back into the real estate game in another year or two with a lot less stress.

Going to continue to come here and learn from everyone!  

Thanks again!

That's just what my lender said!  Awesome!  Glad to hear that is not the case!! :)

Okay,

So this may be a silly question, but I have found myself in a conundrum. I recently sold two properties using the 1031 exchange, but didn't think this fully through. So my plan was to use the equity to buy (finance) 3-5 more properties with the profit I received from those properties.

Problem - I can only have 4 financed properties in my name (mortgages), and I currently have my home with a mortgage, so that leaves me with only 3 properties I can buy. The problem is most homes that I have found that profit that best in this area sell for between $60-$100K - which means I need $12-$20K for my downpayment. So that's great... I can buy two properties with that first property that net me around $28K to use... however, my second property net me around $56K to use. I can't buy three more properties with that because I can't finance that many properties.

So my question is - what would you recommend? I don't see any quality multifamily homes listing in the range of $250-$275K - which is what the purchase price would need to be to use up my downpayment money. The other option is to use that money to purchase a property outright, however I don't think I can do that with a 1031 exchange , right? The property I sold to get that money just sold for $174K so it is my understanding that I the purchase price of the next property (or combined properties) must be more than that. Is that right?

Any advice on what are some good options would be appreciated :)

Thanks!

Tara

Okay, 

So this may be a silly question, but I have found myself in a conundrum.   I recently sold two properties using the 1031 exchange, but didn't think this fully through.  So my plan was to use the equity to buy (finance) 3-5 more properties with the profit I received from those properties.

Problem - I can only have 4 financed properties in my name (mortgages), and I currently have my home with a mortgage, so that leaves me with only 3 properties I can buy.  The problem is most homes that I have found that profit that best in this area sell for between $60-$100K - which means I need $12-$20K for my downpayment.  So that's great... I can buy two properties with that first property that net me around $28K to use... however, my second property net me around $56K to use.   I can't buy three more properties with that because I can't finance that many properties.

So my question is - what would you recommend?  I don't see any quality multifamily homes listing in the range of $250-$275K - which is what the purchase price would need to be to use up my downpayment money.  The other option is to use that money to purchase a property outright, however I don't think I can do that with a 1031 exchange right?  The property I sold to get that money just sold for $174K so it is my understanding that I the purchase price of the next property (or combined properties) much be more than that.  Is that right?

Any advice on what are some good options would be appreciated :)

Thanks!

Tara