All Forum Posts by: Tracey Robinson

@Marie Z.

I'm just completing a 1031 exchange and have used Asset Exchange Company which is headquartered in San Francisco. I've been very happy with the service. Website is www.ax1031.com 

@Michael Johnson Thanks but all my 1031 funds are used up, I won’t be buying anything for awhile ;-)

@Justin A. I ended up buying 6 SFH - 1 in Memphis, 2 in Birmingham, 2 in Indianapolis and 1 in Oklahoma City.

You may have already considered this, but California is a very landlord unfriendly state, you really need to be cautious about who you have renting your property. Also when you sell the property eventually you won’t be able to claim capital gains exemption if you’ve been renting it and it’s not your primary residence for at least 2 out of the prior 5 years. That opens you up to a boatload of taxes on the capital gains  ( especially in California) or you can avoid that by a 1031 exchange which is complex and you only have a short time to complete it. I suggest thinking about your timeline for selling the property eventually ( presuming you will eventually sell )  and researching what a 1031 involves if you haven’t already. It’s a complicated and time consuming transaction. 

@Axel Meierhoefer Yes, I’m sure. I worked with one turnkey outside of AL and due diligence was required. Fortunately my brother works in home renovations so he is able to review inspections for me and give advice - helps a lot. 

@Axel Meierhoefer Thanks ! Actually only worked with Spartan. 

@Alex Olson sure - I posted on that a few days ago, but ended up buying 6 SFH. 1 in Memphis, 2 in Birmingham, 1 in Oklahoma City and 2 in Indianapolis.
@Syed H. Agree that due diligence is needed with turnkey providers. 

@Steve Morris - identify by July 15th, then you have a total of 6 months to complete the transactions ( 6 months from your sale date ) . A good QI will keep you appraised of all the relevant timelines fortunately. 

@Dave Foster - thanks for clarifying the 200 % rule, and yes, complicated ! 

@Foley Ma Different situations for all the properties. A couple through turnkey companies, one through working with a good agent, another referred by a turnkey provider but not rehabbed by them ( owner wanted a quick clean sale and purchased from them previously ), and a couple through working with a real estate investor who has a team in place to facilitate purchases and rehab if needed. Turnkey fees are built in to purchase price, fees for RE investor are for me reasonable given the value provided. Yes property management will be in place for all. Vetting was a lot of phone calls, looking for good people on this website and seeing who followed through. With the pandemic I had lots of time on my hands on weekends, and my work hours were also not as long, so I could put the time into this research. 

Well July 15th is tomorrow, and I wanted to thank everyone here for their advice and offers of help ! 
Bigger Pockets has been a great source of information and contacts. 
I ended up buying 6 SFH for rental - 1 in Memphis, 2 in Birmingham, 1 in Oklahoma City suburbs, and 2 in Indianapolis. All B to A+ properties.
I thought about paying the taxes but especially since California is such a high tax state I really didn’t want to do that. Plus the real estate market seems to be holding so far. 
I looked at a lot of OZ funds and liked a couple but that’s still paying the taxes, just with a stepdown, and the payoff seems like a long way down the road. 
So I’m sure it will be interesting and I’m also sure a lot of people would say it’s crazy to start RE investing with 6 properties ;-) 

@Brian Singh As far as the Bay Area I don’t see any good plays at this time. Even if the prices dropped in SF 30 % I wouldn’t be tempted to go back in personally - I feel lucky to have sold in April. SF is one of the worst run cities in the country and from what I read I see the quality of life there declining further ( crime, homelessness, cleanliness ) unless there is a radical change in city politics, which I don’t see on the horizon.

I think there are many more cities / areas around the country that are better to invest in at this time.