House hacking in the Gwinnett County (Lawrenceville) Area

House hacking in the Gwinnett County (Lawrenceville) Area

Buford, GA · Member since 2017 · 4 posts · 1 vote

I am new to investing in real estate, but I am eager to get started.  From what I have read and my personal preferences, I believe that house hacking is the way I want to start.  I am interested in purchasing a duplex in the Lawrenceville, GA area, but I have a few questions that I need to clarify first. Please forgive me if these should be multiple posts to the forums, but I will toss the questions out here and adjust as necessary.

I have started a corporation, but I am not certain exactly the role that it should play in my REI. My long term plan is to buy and hold several multi-family properties to fund my retirement. I plan to turn the corporation over to my grown children when I exit the planet. I don't know if this is best done with a corporation or a real estate trust. If the answer is corporation, what i the best way to get the properties into the corporation. I assume that I could quit claim the properties to the corporation and hope that my mortgage company does not object and call the note. I watched some pod casts and such that have recommended that I not use a corporation, but rather use an umbrella insurance policy for protection. I will look to pass the properties to my children so does a corporation make that easier or more difficult?

I am looking to buy my first investment property and will probably owner-occupy that property for a year or so.  

I also need to re-finance my current house to pull out some equity for the down payment on the new house. 

Thanks

Greg

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  • Investor · Aurora, CO · Member since 2016 · 114 posts · 112 votes
    9y

    Hi @Greg Swartzell,

    Welcome to BP.  I have reviewed your post, and would agree, "house hacking" surely has some benefits, too mention to mention here, thus it is a sound strategy to start your investing path.

    Just to clarify, you mention buying a duplex in Lawrenceville (which makes sense), but then you indicate that you will be refinancing your home to pull equity and obtain the down payment for the duplex.  So I would ask, what is the plan for the house?  Are you hoping to keep your home, rent it and buy a duplex in which you can live in to start the "house hacking"? Also, you plan to maybe live in the duplex for a year or so.  Then what?

    This scenario is certainly possible, as there are hundred of stories on BP with people who have been successful with just this strategy.  I just think that if you provide additional information on the whole plan you have, you will get better, more useful responses to your questions.

    Good luck!

  • Buford, GA · Member since 2017 · 4 posts · 1 vote
    9y

    @Michael Hastings, 

    My plan is to sell the house as soon as I can.  I need to pull the money out for a couple of reasons.   I don't want to take the money out of the profits of the house when it is sold, I need to do it before then.  I am looking to sell my existing home in order to occupy the duplex.  I'm sorry if that if vague, I have a lot of things in the air and I am trying learn new things while balancing the old things and make some serious life changes.

    Thanks

    Greg

  • Damir KamberPro Member
    Investor · Roswell, GA · Member since 2014 · 234 posts · 97 votes
    9y

    Great mindset you have there @Greg Swartzell. I will throw out a quick recommendation before you move forward in regards to having a corporation. Find 2-3 real estate accountants (not necessarily CPAs, but ones who work with real estate investors specifically) as well as 2-3 real estate attorneys. They will all, for the most part, give you about an hour of their time to consult and ask valuable questions. Just make sure you are not calling them between Jan-May, no one will give you time of day then. Pick their brain about the structure when owning rental properties. I believe you might be thinking way ahead with the whole corporation thing.

    Cheers,

    Damir  

  • Buford, GA · Member since 2017 · 4 posts · 1 vote
    9y

    Thanks @Damir Kamber.  I appreciate your insight.  I want to make sure I have what I need, but you may be right that I can do this without the corporation and just use a sole proprietorship to get the benefits I am looking for in the short term.  Maybe the whole corp thing is for a little farther down the road.

    Thanks

    Greg

  • Braselton, GA · Member since 2013 · 243 posts · 57 votes
    9y
    The Gwinnett area is expensive right now. I'm not seeing any "deals" in the area. I can't even find a 1% deal much less a 2% deal. Keep a look out for off market stuff is all I can recommend.
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