Have Income, Credit and Cash, but need help - Posted by Newbie Investor

Posted by Bud Branstetter on January 26, 2000 at 11:11:33:

If you look at it from a per unit price you have $1200/per to buy into a 50 unit complex. If per unit cost are 20 to 30K then you need more cash. You could consider doing 1031 exchanges on the rental property to generate more down. You can also look for owner financed units.

You do need to become an expert in apt complexes. what cap rates they are running, what deferred maintenance they have and what the income really is. If the cap rate is 12 then you want to buy at 16.

The other approach is the salary deduction-401Ks and Roth IRA’s. Learn how to buy and build up those profits into the Roth so there are no taxes on that rental income. You can also buy discounted mortgages or do some hard money lending. The idea is to make your money work for you with the least amount of your time. Next time you’re in the Dallas area I’ll give you and hour or two of ideas to reduce taxes and increase non taxable income.

Have Income, Credit and Cash, but need help - Posted by Newbie Investor

Posted by Newbie Investor on January 25, 2000 at 15:23:54:

Okay, don’t shoot me. I am 34, my husband and I earn combined salaries of $160,000 a year, we have excellent credit with only mortgage debt and we have $60,000 in cash to invest. We currently have 4 rental properties + our primary $350,000 residence, but we are still being killed in taxes ($40,000 due for 1999). I would like to buy a 40-50 unit apartment building, both for the tax write off and for future security (we work our butts off now and can’t keep this pace forever). Any recommendations? Is an apartment complex a good idea? Experienced investors… what would you do?

Thanks in advance.