All Forum Posts by: Tristan Wheelock

After weighing the pros and cons and reading all the helpful advice on this forum. I think I'm going to sell. I'll try and 1031 exchange if I can manage to find something decent in this market, otherwise I may just wait for it to cool or look elsewhere for cap rate.

I have a contractor who's worked on the building in question and he made some good points. Cloth wiring, possible lead paint, cast iron plumbing. These could all lead to huge CapEx costs in the not so near future.

Also I didn't realize that if I were to take over the property the mortgage would have to be redone since it's currently held jointly with my brother. My realtor explained that I would have to start a new mortgage at current rates and pay the costs to process that. All in all it seems like it's probably for the best to just cash out and move on to something else.

Thanks for the solid advice @Dave Foster  @Edwin Epperson and @Patricia Steiner

Quote from @Dave Foster:

@Tristan Wheelock, When the market reaches the point where rents cannot cash flow a property for what they are selling for there is generally a correction coming.  

this is interesting and I’ve never really heard of this idea before. Just to make sure I understand what your saying.

If the property can’t cash flow at the estimated price say $530k a correction is probably coming?

In St Pete specifically they’re working on rent control laws and also the amount of new inventory once all the condos come to market is another concern.

My property is in uptown but it’s one the classic built in “1925” deals that are all over St Pete 

Lots of food for thought. 

They're both cash flowing nicely because we bought them before out area took off.

I don't know that we could get an attractive rate on a line of credit considering the rates these days?

There is mortgage balance on both properties.

The other downside of the duplex I co own is that the taxes just jumped a bunch since it's in a nicer area.

Howdy everyone. Thanks in advance for your insight.

I currently own one duplex next to my primary and co-own another duplex with my brother in another part of town.

The duplex I own is a single family home with a converted garage apartment in the back. I bought it for $185k and the current "zestimate" is $415k. It was built in 1945 but has been renovated and has new wiring and plumbing and a new roof.

Right now it's vacant but the rental market is really hot so I could get it cash flowing at a nice cap rate if I wanted to.

The duplex I co-own is a two unit building that's been renovated but still has cast iron plumbing and old wiring. New roof, new paint.  It's in one of the most desirable locations in our town. But, it was it was built in 1925 so large issues could pop up.

My brother wants to cash out on the building in the nicer part of town. We've gotten offers in the 520-550 range. We bought it for 168k and put maybe 40k into it.

Here's the dilemma:

I think the older building will continue to appreciate and rent for a premium. I'm also toying with the idea of moving into it and doing a house hack. I could buy my brother out, but to do that I would have to sell my duplex.

The benefit would be a 1021 exchange and thus avoiding taxes for now. I would also end up with an older building in a nicer part of town and lose the property adjacent to mine.

I can see pros and cons to both sides and am having trouble deciding what the best path forward is.

Any thoughts or ideas would be greatly appreciated.

Thanks so much!

Hey Matt!

$150 a month does sound like a lot, especially for a small lawn. In my experience it's been closer to $85 per month. I'll let you know what I find out. 

My tenant has recommended these folks:

https://www.facebook.com/mowgr...

I plan on calling them this afternoon. 

Hi St. Pete Investors!

I'm looking for a lawn service to take care of two properties in the Central Oak Park neighborhood of St. Petersburg FL. 

Ideally the service would accept online or electronic payment. 

Thanks so much!

I can also highly recommend Jeff Copeland. I've used him to buy three properties. He's incredibly professional and knowledgeable. 

Cool. The refrigerator and stove are looking like they'll cost about $1400 new tax and shipping included. 

Sounds like that's not out of the norm. 

The only issue with shopping sales is that the kitchen I'm remodeling is very small so I need to use apartment sized appliances. (24 inch range and refrigerator). 

Those are a lot harder to find used or scratch dent or sale. 

Any resources people might suggest for those?

Hi Everyone! 

I'm in the process of renovating a unit. The kitchen is gutted and I'm shopping for new appliances. The target rent is $1200. I think if I make the space look nice enough I can get it. 

Is there a number people aim for when buying new appliances? I only need a fridge and a stove. Right now it looks like a nice set will cost about $1400 and less nice set will be about $1100. 

Is this too much? Any input would be greatly appreciated. Thanks!