Doing My Homework
Hello, I've been reading through this forum and am extremely impressed by the amount of knowledge here. In this research along with reading a ton of books I have some thoughts on my progression into RE Investing. I would greatly appreciate your feedback. Here are my thoughts so far.
My parents and I are looking at going together and forming an LLC to hold rental properties. We are not ruling out flipping, but are going to start with rentals and perhaps flip if an opportunity pops up. My parents have inherited some farm land and want to get rid of that. We are hoping that we can do a tax-deferred exchange to first invest that money (Approximately $150K) and second save on capital gains. We want to start off simple so we are looking at single-family homes that we will finance on a 30 year mortgage with 20% down to eliminate PMI.
My parents are near retirement, but need some suplemental income so they are planning on performing the property management. We'll build in enough margin to support a property management firm if that is needed for any reason. I will be pretty conservative on my calculations so I'm not concerned about getting upside down. If any of you have some spreadsheets that you can send my way to help speedup scenario calculations that would be a huge timesaver. My email is justinhumiston [at] yahoo [dot] com (I've changed the formatting of the email address to protect from spammers).
Thanks for your assistance!