All Forum Posts by: Trago WAllace

Thank you guys.  Yes, I've talked with the county office about permits required.  I will need them, but they aren't difficult to obtain in the area that I am purchasing.  Still need a PM though

I am purchasing a short term rental in the Santa Cruz mountains (CA). Anyone have lead for a Property Manager in that area that specializes in STRs?

@Jeff Zimmerman, were you able to find a good PM for STR? I am going to be purchasing a STR in the Santa Cruz Mountains and currently looking for one. What's been your experience owning a STR in the area. I would love to connect about rental and occupancy rates. Thanks!

@Scott McIntosh thanks for the info on the testing dates.  That's really good to know.

I have been looking into Opportunity Zone Funds (OZF) to defer capital gains I made in December (plus make more long term capital gains without paying taxes).  I have a decent grasp of how OZF works.  

What I am trying to clear up is if I can combine OZ investing with the BRRRR
process. Here is what I would picture that looking like:
1) Create the OZF and “deposit” the gains I'm trying to defer into it.
2) purchase property A and rehab it with the OZF (the rehab needs to
cost at least as much as the acquisition of the property, right?).
3) rent out property A
4) refinance it and the cash out gets deposited back into the OZF (this is
where I am unclear on the process)
5) Find property B and repeat the process.

Is step 4 legit?  Is this how it could work? 

Also, any cashflow from the properties in the fund can be paid to investors (me), right?  Or do they need to stay in the fund?

I am hunting for BRRRR properties in Indianapolis and I came across a property that is being sold by Renew Indy. Have any of you done a deal through this process? Is it worth the extra steps? The application approval process takes at least 8 weeks, but many of these properties are very inexpensive so it could be well worth it. They require proof of funds and a scope of work to be submitted for the application. Both of these are doable. I'd love your input. Thanks

@Axel Meierhoefer

I've had 4 turnkey properties, all in different states (for diversification). The first one I bought in 2007 so it barely broke even. The next two have been steady cash flow at around 6% ROI. The last was nothing but problems (repeatedly vacant, repairs constantly, went through 4 PMs in as many years). So, in 2019 I sold my two less successful properties and am so glad I did. I now have the cash to start getting a much better ROI on BRRRRing

@Mary Aviles

Is that really how portfolio loans work? That’s not the way I understood it. I guess it’s a question to ask a lender when discussing such loans

Thanks for all the thoughts. Sounds like I’ll be going for the refi right now!

I have a couple turn key properties (in different states) that I have had for a few years.  I am gearing up to start BRRRRing thanks to all that I have learned on BP podcasts and books (thanks!).  I have been using podcasts and your books for a while, but am only just starting to get connected with the community here on BP.

I was looking at the value of my current properties vs what I owe on them.  Along with better rates, I could potentially pull out some equity to help with my new endeavors.

My question is: Should I look to do a cash out refi now?  Or should I use the portfolio lender that I eventually get set up with during my BRRRRing?  

Do portfolio lenders even finance properties in different states, or do I need a different lender for each area I am invested in?

Thanks for all your help.  I look forward to getting more connected with the BP community.