All Forum Posts by: Teri Feeney Styers

@Dave Foster interesting... I did a 1031 a number of years ago (business for business - so the structure was for a longer term hold. But in 2015 I was selling a rental property and consulted my accountant about the possibility of doing a 1031 for a flip purchase (ultimately decided against it) but she didn't mention that a flip wouldn't qualify as part of the exchange... I guess it is a good thing I didn't do it! Thanks! PS - cash is a form of wealth!

@Jason Hawk while I don't disagree with @Account Closed I would like to point out that flipping can also "build your wealth" and has its own tax breaks (for example you can use a 1031 exchange and keep rolling the income forward and you can write off the expenses of the flip). I consider it more of a lifestyle / monetary choice. I can own rentals - but I don't like being a landlady. I do like projects. I can take my money invest it in a project, sell that project, pocket the profit and move on to the next. You can tie up $20K in a rental and pocket $200 per month over the long term - plus some appreciation. I can tie up the same $20K - (I am assuming that we are both borrowin a good chunk of the money) - force appreciation via fixing - and let's say make a modest profit of $10K in a 6 month period (I hire out my work and use my "day job" to live on). So, I have made a 50% ROI in a relatively short time. My way requires a lot more interaction and supervision - it isn't really "passive" income. But it suits me. You have to find what suits you.

I don't know the answer here - but how is a vacation rental different from a motel room? I don't believe those in the hospitality industry have RE licenses... @John Dirgo Deweese how would you distinguish between the two? 

I recently converted a sfr into a duplex with a "tiny apartment" (172 sq feet). It sold relatively quickly. I also did a lot split and now own a vacant parcel next to it where I will build two more units in the very small or tiny house category. I am also looking at some California properties in Imperial County for "snow bird" construction. Us empty nesters frequently don't need the space or want the upkeep. (We also don't want to climb skinny ladders and scoot around low height lofts on our knees so my designs take that into consideration). Go tiny house @Gayle Eisner! and keep us posted...

Hi Jon. I am in GJ. I am a flipper mainly now - but working on some new construction too. I have a flip in downtown started for 2016 and prior rental experience. I love the BP podcasts. @Mark Spidell was on there recently. The webinars are okay - mostly for newbies so that would be good for you. If you want a local colleague send me a request.

Definitely need to understand your local market and definitely need to avoid the "zestimates" on Zillow and other national sites - they just aren't good enough. I use the local MLS and Craigslist to search for properties being offered (and do a lot of "drive-bys" as comps for sale. Our county offers a great tool on the assessor website where you can search out solds from the last six month and it has all sorts of filters to narrow the field (like square footage or area of town, etc.) I only do flips now, so that helps me with ARV - but I've also used it to determine rental value too (I always have a few exit strategies).

a quiet title should solve the issue - why didn't your attorney suggest this instead of expensive research and trying to locate an heir from over 20 years ago? and yes, @Greg H. is correct - where is the title company in all this? It is fixable - how is HUD planning to pass title when you close?

head for small claims court. in colorado it only costs $65 and you are required to sit with an arbitrator first. if they fail to appear you are automatically awarded the judgement. You need someone with the power to make them pay to listen to this. Sounds like your legitimate losses may exceed the usual cap ($5000?) of small claims but it is a cheap way to get a good chunk of change. BTW: they sound like true incompetents and crooks.

@Marvin MengI wouldn't bother with a separate hard drive - just subscribe to Carbonite which backs you up in cyberspace (@Patrick Liska). Paper applications are dangerous - frequently contain social security and driver's license numbers. If you aren't renting to them then shred them. No reason to have that info on file. (meaning rejected apps) Otherwise, 7 years is it with the exception of the actual taxes themselves. Keep your taxes forever. 

@Wade Funk Using the BP analysis is good, But perhaps you can also collect some statistics from local housing authorities, etc. regarding their waiting lists vs. available properties. I don't know if you will be building one at a time or in small segments, but you could also float some CL ads, etc. for the finished project and see what kind of a response you get from potential renters (like put up an ad for 48 hours with a rental price and features). This will both help gauge interest and show an investor that they have a ready market for their product.