list it? (by small potatoes [NY]) Jan 12, 2021 5:36 PM|
list it? (by Richard [MI]) Jan 12, 2021 6:15 PM
list it? (by Bonanza [NC]) Jan 12, 2021 6:38 PM
list it? (by Ken [NY]) Jan 12, 2021 6:41 PM
list it? (by small potatoes [NY]) Jan 12, 2021 11:28 PM
list it? (by FloridaNative [FL]) Jan 13, 2021 8:41 AM
list it? (by Tom [ME]) Jan 13, 2021 9:54 AM
list it? (by Robert J [CA]) Jan 13, 2021 5:23 PM
list it? (by Ray-N-Pa [PA]) Jan 13, 2021 7:47 PM
list it? (by small potatoes [NY]) Jan 13, 2021 10:33 PM
list it? (by Ray-N-Pa [PA]) Jan 14, 2021 8:05 AM
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list it? (by small potatoes [NY]) Posted on: Jan 12, 2021 5:36 PM
Over the past several years I have incrementally fixed up each of my properties (after taking over from the PM). I have a 2 family that has not gotten the full treatment yet. Has one long term tenant. Half the shingled roof is on it's last legs and the other half isn't much better. An estimate 2 years ago for 1/2 roof was $4000.
One furnace in the attic is way old army green affair (from the 70's?). The other I have had the blower motor replaced 2x and the frame is rusting out. The heating guy always tells me that it will collapse on itself any day (that was over 3 years ago).
I have converted to pex for the 1st fl and the circuit panels are updated.
I collect 1100/ mo in rent. I don't think I want to own property more than ten more years. I thought the other day, as a stand alone property it's probably not worth holding onto and carrying these expenses (not to mention updating the units when the time comes). I might get 70k for it now, it's not in an ideal location and has no desirable features (driveway, etc).
I have another 2 family with 3/4 brs that is harder to deal with that I've always thought would be the "first to go" but it cash flows well. The 2 family with the ten yr smoking catlady tenant is one where I had to replace both furnaces in the same year. So I know how painful that is to absorb. Guess that, and knowing what roofs cost made me think about where I want to get to and if this one make sense to cut loose now.
I would not do a 1031/ buy with prices at the top right now. And with NY poised to make renting even more tenant friendly, I'm gun shy in general. Car, boat and rv storage seems like it's in high demand, but as high as residential taxes are, commercial rates must be worse. --24.194.xxx.xxx
list it? (by Richard [MI]) Posted on: Jan 12, 2021 6:15 PM
Sell them both on 1031's.
Find an industrial park in a smaller town and get 2 or more lots next to each other (with or without buildings). Exchange each current property into a separate lot or lots (depending on the numbers). If the buildings don't sell at the same time, the separate lots can be adjusted on closing times to make it work.
If you get the right area, you might be able to get a good sized lot (here I can get a lot of about an acre pretty cheap). String as many lots together as you need to make the numbers work.
As an example, I've got about 8 lots in a row on the same street locked up. Bought the first one and have options on the rest. So I can just exercise the options as needed.
On the lots, of course, you might have buildings or not, but you can use the vacant land for parking - contractor's yards, RV parking, boats, etc. Maybe a recycling business. Maybe a flea market. There's a lot of possibilities. Also, the best part is it's not housing. At least (for now) the govt can't te;; you that you have no right to collect rent. --75.7.xx.xx
list it? (by Bonanza [NC]) Posted on: Jan 12, 2021 6:38 PM
Get rid of the dogs, keep the beauty queens --65.188.xxx.xxx
list it? (by Ken [NY]) Posted on: Jan 12, 2021 6:41 PM
The market in your city is hot,you should really consider selling,i bet in 2-4 years you could easily replace them for half of the sale price --72.231.xxx.xxx
list it? (by small potatoes [NY]) Posted on: Jan 12, 2021 11:28 PM
Richard that idea is intriguing. I take it this you employ this strategy to take advantage of anticipated appreciation? OR are you collecting rent on any of them? Your lots are in an industrial park? How many sf does one allow a company to build out? By me mega distribution centers are popping up, but they are all on their own land. Seems like every locality draws a line around something and calls it a shovel ready industrial park. I think there is actually quite a bit of this type of land around. Ken what's your take? By me is also vacant older industrial space in designated brownfield areas. Not all are brownfield parcels but I don't see mfg returning and I don't see what replaces it. I am learning about industrial scale composting but the buy in is millions and in NY I think it's only a matter of time before the big waste companies move in. They already own the carting contracts. In 5ish years NY will mandate more organics diversion and it will make sense for them then. --24.194.xxx.xxx
list it? (by FloridaNative [FL]) Posted on: Jan 13, 2021 8:41 AM
Sell your two family. Don't even replace the roof unless you want to open up your selling market to owner occupants and noob investors. Here selling with a bad roof is going to attract pro investors only and limited attraction to an owner occupant.
Owner occupants pay higher prices and some think they can do the work themselves. It may or may not be the same in your market.
A good roof in S Fl is critical to getting HO insurance. So with a roof in bad shape the buyer has to have the funds to change out the roof within 30 days of purchase to keep the insurance (it's a requirement) and there is only one co that will insure in that circumstance. Find out the added value if the roof is sound or newer, if any.
As for the other conditions, sell AS IS. --12.220.xxx.xxx
list it? (by Tom [ME]) Posted on: Jan 13, 2021 9:54 AM
Take the money out of your RESERVE FUND and replace it. --74.78.xxx.xx
list it? (by Robert J [CA]) Posted on: Jan 13, 2021 5:23 PM
I have had the same questions dealing with rentals that I want to let go and re-invest in something else. I decided that when my rentals turn over 80 years of age (pre 1920's), their design and construction was too old and not sound enough to withstand the years, maintenance, earthquakes or fires.
Sometimes over my ownership I'd fix up the property unit by unit as it became vacant. Or all at once I'd change a component in the entire structure -- like new windows.
Two years ago a friend with an extra single family house and a duplex was going to sell them both quickly and cash out. If they did this, they would net after taxes around $500K. Instead we sold the house and used some of that money to fix up the duplex. We got new tenants, good ones that paid the rent early via online payments. We also placed a manager to take care of any problems. So now my friends had lots of money left over from the sale of the house and a duplex making them a great income.
Now they want a place by the beach so they will sell the duplex and 1031 into a duplex or triplex on the beach and keep a unit for themselves.. I told them they could re-finance the duplex and buy a townhouse on the beach... --47.155.xx.xxx
list it? (by Ray-N-Pa [PA]) Posted on: Jan 13, 2021 7:47 PM
It is a challenge to get replacement properties. In a balanced market, I just turn to a property that I have an option to buy. The option properties ran low about three years ago when things started to shift to a sellers market. The market is simply crazy now with less than half the number of places available than at the start of the pandemic
So last year I attempted 4 different 1031 and was able to complete only 3 of them - that is find replacements on three of the four. When you don't pick up a replacement property the 1031 company will hold the finds for 180 days and then return them to you.
In my successful exchanges I shifted to lower management type properties. Oil and gas rights, timber, a NNN lease commercial property. Many of these price points were inflated have been even more so now. So for me it came down to quality of life.
Toilets and tenants is not the end. It is only a tool to reach the end.
My end - more freedom. How do you babysit a gas well? You have to check your online banking once a month. A NNN lease place? Those cheap folks still mail checks just so that they can float money.......figure that out, a fortune 500 company making money off of floating money - that is efficiency by being non-efficient. As for timber, you get a cutting every 10 or so years. The 20 acres ran me 1,700 an acre and I estimate we have $5,000 in just Cherry that is ready for 2021 or 2022.
With the money I am suppose to be getting back from the 180 period, I think it is the end of this month or early next month......maybe I will write some small notes.
I believe in the velocity of money will make you money. I know there were experts that will tell you buy and hold.......for me it is buy hold until paying it off and then exchange it for the next hot thing. That is tough now as the government has pumped so much money into the market place.
If you have an Amish community near by - ask one of the elders about there plans for expanding sales. There is an old farm and garden center and I have a meeting on Friday. --24.101.xxx.xx
list it? (by small potatoes [NY]) Posted on: Jan 13, 2021 10:33 PM
Ray n Pa there are Amish, never thought they'd be looking for financing. I think they are competition for buying up land. Each family needs their own parcel.
There are tons of failed nurseries and garden centers around.
Cuomo just announced a whole bunch of solar projects. Not sure what impact that has on the area. I suppose if the new grid gets built then solar farms will pop up along it.
Robert everything I have is over 80. I've proceeded much as you describe over the past bunch of years. Updating units, doing windows, roofs, heating systems, water heaters, pex etc.. I just stopped and thought I have this last one that has been low input and I look forward and realize it will require capital, and how does that fit with what I want to do in ten years. I'm already where I want to do less house calls (and there are fewer with the improvements I've made).
If I sell, the loss of cash flow does reduce my ability to save and accumulate funds. My portfolio is all about cash flow, not appreciation. Maybe a lake house- Ken did you go for that lake rental you mentioned a while back?
list it? (by Ray-N-Pa [PA]) Posted on: Jan 14, 2021 8:05 AM
Amish tend to be all cash folks and they don't like dealing with banks.
In their culture they feel very obligated to keep their word and pay on time.
So in a 1031, be the bank while stepping up the investment game. With COVID going on, self reliance is a more popular than ever --24.101.xxx.xx
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