All Forum Posts by: Todd Mason

Hey @Aaron Akins 👋 I’d have to agree with you about long term appreciation up there. With about one house every other month coming for sale under $1M and 10 offers each time it does I’d say demand is out pacing supply. I don’t personally own up there but my wife ( RE agent ) has recently sold one condo to an investor and has another in contract right now. From the research we’ve done and what hear you make your money in summer and winter. But especially summer as winter is dependent on the snow falling. Which hasn’t been good of late. But it stays steady. The bad part is for investors is no one will take offers with a 10%-15% down unless you make up huge amounts in appraisal gaps. Two of her most recent have been cash buyers that wanted the house to double as a second home.

I know that’s not too detailed but if you have any questions I’d answer in my best opinion or what I do know. I looked at a townhouse there pre Covid for $305K and now it’s $619k. Really kicking myself now lol.

@David Parathundil like others have mentioned I’ve ran into the same issue with properties in Kissimmee and Davenport. Even on Pricelabs which you’d think would be solid if you run some of those numbers they just don’t work.

Hands down the enemy method is the best way to analyze down there. Get specific for comp properties and see what they’re charging throughout the year, weekends and holidays. Especially times when schools are on breaks. I’ll think you’ll show some positive cash flow.

Thank you @Alexa Ferguson ! Such a great post! I’m starting to jump into self managing( trying to break away from the PM ) I’ve looked into Hospitable formerly Smartbnb but now I’ll check out Guesty! Hope it all goes smoothly for you:)

@John D. Yeah it is getting harder to find. From my research and numbers it was a solid 15% CoC with potential to hit the 20's but I realized it was on leased land which a lot of stuff down there is. Plus I really enjoy vacationing down there so it'd be a multi use investment. I know your very familiar with the area, do you have any recommendations? I'm targeting my search in Indio more recently

@Dave Foster that’s an awesome explanation! Thank you so much for the clarification it sounds like a good plan! Are you able to be the intermediary across the country?

@Wayne Brooks @Jon Taylor thank you both. Yeah I’m not too familiar with the 1031 and this would be my first so very thankful with the help and pointing out the do’s and don’t. I knew there had to be something I was missing!

Thinking about how to best structure a 1031....

Loan balance: $125K...... Est net sales price( after all closing cost ) $310K

Est net proceeds: $185K.... This would be the amount to roll over into 1031 and put towards next property

I currently have a HELOC on the property for $90K.......... Here is my thought / question

If I was to withdraw the HELOC before the sale of the house that would count as debt/ 2nd mortgage on the house right? Which debt is non taxable. Leaving the net taxable sales proceeds of $95K to 1031

Does that make sense or am I off and missing something?

@Bonnie Low it’s in cathedral city next to Palm Springs. That whole valley is really clamping down, especially in the ritzy areas. And like @Collin H. said they don’t want the traffic and noise. I understand that to some degree also, I’m not sure exactly who is behind it but they do have a few groups down there really lobbying against it but on the flip side there still are specific areas that are designed for them

@Amy Braun I would chat with Steven at ARRIVLS property management. I don’t use them but I have talked with them and checked out their listings and seems like they have a good running business moto. He’s super knowledgeable about the market. Worth a chat

@Bruce Woodruff @Steve K. Thank you both very much for your input. Yeah it seems I can do in one of the surrounding cities. It is in the Palm Springs CA area has a lot of good variety in travelers but some of the surrounding cities have better reg’s