All Forum Posts by: Tyler Brown

Hi BP!

Business partner and I are under contract for a 10 unit property in Vegas and are looking for commercial lender recommendations. Would really appreciate any leads you guys have.

Thanks for the replies. I was wondering about specific analyses and cut-offs you use to decide when to sell. Ie. certain return on equity, certain percent appreciation, certain market factors, combination of the above that would trigger you to sell or exchange in lieu of continued holding? I know certain syndicators have particular criteria they use. Or do you just continue holding successful properties and cash out refinance at some point?

High level decision making question: how do you decide when to sell/1031 vs hold?

I have a Vegas 4 plex that has appreciated and cash flows well. Purchase price ~$425k, owe ~$320k, PITI ~$1600, rent ~$995 per unit. Similar buildings now selling for $550-600k. Current cash flow ~$1k monthly on a 3.5% 30 year am.

Best case with sale, take ~$250k proceeds in 1031 for down payment on another property up to ~$1mil at around 5-5.5% depending on sale time and rates or sit back, allow continued appreciation, cash flow and see how the market goes? 

Surely, this is a common (good) problem for experienced investors. Any advice?

Haha! I thought about doing that, but figured I would be happy if I just made market rent for now and didn’t want to push the envelope! Such a strange circumstance. Will be interesting see how long the CHAPS stuff plays out

Interesting! Just an update on my situation: My tenant was approved again and I received payment for several months back pay. He also surprisingly paid this month as well. We had sent him a notice that rent would be increasing to market rent in May, so if he applies for CHAPS again, and is approved, at least we should receive market rent.

Thanks very much for the reply. This gets to the heart of my question. Let’s say he keeps getting approved and keeps applying. Is there no way to break the loop and remove the tenant? Surely there are others in this circumstance. I’m wondering if I just refuse to accept the assistance, can I then proceed with eviction?

Hello, BP! I have a 4plex in Las Vegas that I recently acquired. One of the inherited tenants is on a month-to-month lease and has not been paying rent. I initially attempted to evict the tenant and he applied for CHAP assistance which he ended up being approved for, so the eviction was stayed. We were set up to evict him again, but he again applied for the CHAP assistance which seems to take months.

At this point, I am wondering if there is any way to evict the tenant if he keeps applying for this assistance? Does applying for this assistance make someone invulnerable to any attempt at eviction? I really would like to get the tenant out to renovate the unit and get a market rate tenant.

Any advice appreciated!

My business partner and myself own an apartment complex and are under contract for two more properties. We are planning to start an LLC and move the properties into this LLC. My business partner prefers to set up an LLC for each property instead of having all properties in one in case we want to do a 1031 exchange in the future.

If we place all properties into one LLC will we be able to sell one or some of the properties at a time through a 1031 exchange, or will this be limiting to us in some fashion?

Thanks for the reply, Dave. So it sounds like my best move may be to go into my own LLC and keep it a single member and have my partner go into his own LLC. We could then have our separate LLCs on the contract as a tenants in common?

Hi BP, 

I'm nearing closing date for a 16 unit complex. I'm entering into the contract as a tenancy in common with my business partner with plans to switch into an LLC myself soon after and then have my business partner join the LLC later given that he is using money from a 1031 exchange. For tax purposes, should we obtain an EIN number? Or could we both just submit schedule E's reporting our half of income and expenses? Thanks in advance