All Forum Posts by: John Paziouros

@Zach Edelman, it depends who your target audience is & what the selling points for the particular property & neighborhood are. For the properties I manage, I can assure you there definitely is more than enough margin to make it worthwhile. An MTR investor can bank a solid return, without the increased risk & constant turnover of STRs (AirBNB) I am not opposed to partnering with an STR investor, I just think that MTRs are a safer bet, especially since there has been a domino effect of California cities outlawing STRs. Nearly everyday, another California city makes headlines for banning AirBNB; mandating a minimum 30 day rental - AKA MTR. MTRs are the best of both worlds, as they yield a much higher return (typically 2-3 X that of a traditional LTR) without the bureaucratic risk of getting abruptly shut down. The local & state governments actually favor housing solutions for certain groups, such as [traveling] nurses, which are in extremely short supply in California. California hospitals literally recruit thousands of traveling nurses from the Midwest to work six week contracts at a time, to fill the current void. I have heard of MTR investors, who operate within close proximity to hospitals, grossing five figure monthly rents. So to answer your questions (with the right demographic & property) YES, there is definitely [much] more than enough meat on the bone

Thank you for the insightful responses @Nicole Heasley Beitenman & @Conner Olsen!  

@Allen Duan, thank you for reaching out.  I responded to your DM & look forward to discussing a partnership more in depth 

Hello BP community, I am searching for experienced arbitrage (mid term rental) investors to partner with. I manage a couple of studio apartments in Southern California that would serve as ideal mid term rentals. Both units are in close proximity to interstate highways, public transit (LA Metro) & renowned hospitals. I am only interested in partnering with EXPERIENCED investors/operators, who have a successful track record with MTRs. If there are any investors in Southern California, who operate MTRs & are searching for additional units to arbitrage, please feel free to message me on here directly, for more details.

Hello BP Community, 

I understand the terms of a 1031 exchange (you sell an investment property & roll over the capital gains into another investment property of equal, or greater value) My simple question is, can you house hack the replacement property of a 1031 exchange?

Hello BP Community, 

I am encountering a constant obstacle which is hindering my growth & advancement as an investor. Over the course of the last half decade, through diligent investing, I have compiled an investment portfolio with a conservative appraisal of $2 Million+ with leverage at about $350,000. This is obviously a great equity position. The constant issue I have is unlocking & accessing this equity, preferably through an equity line of credit. Despite the extremely low LTV ratio, multiple bankers I have spoken with, keep telling me that home equity lines of credit can only be levied against a primary residence, and not against an investment property, or portfolio. I am certain I am not the only investor who has encountered this issue. Can any investors in the BP Community offer insight on how they bypassed this issue, or any other alternatives to access large amounts of equity held in investment properties?
I greatly appreciate the insight.

Sincerely,

John  

Interesting! 

Dave Foster, as always, great insight & knowledge!  You are an invaluable resource to the BP community! 

I fully comprehend what all the members of this blog, have contributed thus far.  My question is, if you extend this one step further, and then sell the now, primary residence, which was converted from an investment property, which was acquired through a 1031 exchange, at that stage, would there be any limitations on the $250/$500 owner occupant deduction? 

@Dave Foster, based on your last comment,

"If so then you can sell this summer and take the primary residence exemption tax free and do a 1031 on the rest and defer all other gain and depreciation recapture. That's the best of both worlds."

If I understood that correctly, are you saying that for a single property that has been utilized as a mix of both a primary residence & an investment property during the last 5 years, upon sale of the property, the seller can claim both the 121 exclusion (owner occupant) & exchange the remaining appreciated value through the 1031 exclusion (investor) ? 

I wasn't aware a seller could claim both tax exclusions (121 & 1031) from a single sale.