All Forum Posts by: William Bohan

Thanks for this input.    I will keep your info for now.     

Thank you David for your post.      Wife and I would like to phase out of work here soon so would like to maximize income so we can really enjoy retirement and help out our daughters if needed.   What type of fund offers 12%?   Thanks again.

Sean

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $698,000
Cash invested: $260,000

in process building two 2 BR 2 BATH ADUs on property yielding the 16500 when completed. Current cashflow is 9000/month.

What made you interested in investing in this type of deal?

Loved idea of real estate investing.

How did you find this deal and how did you negotiate it?

Brother in law Bill Morgan is real estate agent found this deal for me. Had to take equity from my home at same time as loan going thru on this deal so it was tricky.

How did you finance this deal?

above

How did you add value to the deal?

ADUs finishing touch. Just did nice remodel adding master bed and bath and losing one bedroom in process. Attracts high income tenants.

What was the outcome?

Very nice cash flow

Lessons learned? Challenges?

Lawsuits help! I was so naive thinking this stuff doesn't happen to good people but it did. Mold first and now 6 years and counting on a work comp suit hoping not to lose my shirt on this one.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bill Morgan and Andy Blough are awesome! Based in Del Mar.

Thank you Amit for comments.    I'm getting some good ideas here from all the input and much appreciate it.     I am fortunate to be in a high appreciating beach area.   My rents are high at $6300 per 3BR unit so I guess the risk is if economy goes south and no one can afford the high rents.      I've heard having too much equity in one property is risky as well.     Looking hard at DSTs.     Thanks again!

Thank you so much ben for the advice. I'm going to take a look at the educational information there. I need to learn more about the dsts including tax ramifications, depreciation and finally liquidity.

Thank you for your post.   I am 59 y/o and with California taxes we'd get killed on the sale.    Not ready to cash out and lose all that RE income and tax benefits as well.  I'm curious if I can get good management to make out of town workable.    

Appreciate any advice... I was fortunate to pick up a great property in Leucadia, California in 2001 which will be worth about 5M after I complete ADU's on property. NOI will be great on this property at 16.5K with only 700K mortgage now. I realize that's a lot of equity to be sitting there so my question is what would be best move to try to increase income now. I've always managed my own properties but am beginning to open my eyes to the fact it may be better to have it professionally managed and focus on my investments more.

Thinking about 1031 option and buying more income producing properties possibly in other parts of the country.    Appreciate ideas on the wisdom of owning out of town like this.    If it is a good idea, what areas would you look at?       Daughter lives in Denver so I'm thinking about that area.     We don't have tons of cash outside of the equity and retirement accounts so 1031 would be most likely only option.        Thank you so much in advance!

Sean