Intro- How I got started, Seeking advice/additional info
Hello Bigger Pockets!
- I am loving the information that I am learning on this site so far! Reading and checking the forums is increasing my knowledge.
- I found this site, just seeking for additional info and success stories on Real estate, how to get started/why to get started/etc..
How I got started:
I didn't want to live at home with my parents and purchased a condo- remodeled it, posted images on Facebook and had MANY inquiries if it were available for rent.. Started from there- and purchased another, did the same thing.
Here's my background to help you folks understand my situation and perhaps fully assess and help with advice.
PLEASE ask for additional info - I'll more than likely miss something here.
Age: 24
Short term goal: Own 5-10 property to bring enough residual income so I can be "worry free"
Long term goal: Own enough rental property to keep the wheel moving as a slow, concise, "buy and hold" that receives high ROI for rent, ultimately selling off.
****I am not looking to getting into flipping (as I think right now) as a full time business. There is more interest in paying someone else to maintain and take care of property as I take in residual income.
Property 1: Condo - 1 bed / 1 bath (25k loan)
Mortgage, insurance, PMI, etc: $243
HOA: $230
Total "Cost": $473
Rent: $800 / $9.6k/annual
Property 2: Condo - 2 bed / 2 bath (Fully paid, 47k)
Taxes & Insurance: $900/annual
HOA: $315
Total "Cost": $390
Rent: $1050 or $12.6k/annual
Total income: $1850
- Total "Cost" - $863
Cash flow: $987
Property 3: SFH - yet to purchase
Income: Rent 2 rooms for $800-900 to help cover remodeling expenses and etc.
The situation: Currently paying off ALL debt and saving up funds to purchase a SFH. After I purchase a home, I'd like to rent out 1-2 individual rooms and remodel the home to hold and sell for a profit after strategic remodels. How do I report income? Taxes? Do I start an LLC? I don't know if I'm asking the right questions, so please help.
I will continue to work my full time job, but am interested in having additional residual income and turning this SFH into a rental once completed. How do I get taxed the least? Protect my future assets? Where do most professional go from here? Please do keep in mind my long term/short term goals.
Thank you,
David H.