All Forum Posts by: Aaron Zimmerman

On the utilities, you can have it in The lease where you bill back for utilities (RUBS) if your state allows.

given your analysis, $195k feels fair but you need to know the market. Same comments on rent potential

I would put down a lower % and as you have more cash available, you can funnel the money into the mortgage, if you'd like. So long as you have enough $$ for a down payment and reserves to start, I'd say jump in and start

If you do incur capex, this is not an expense. You get to recover that cost over time. Generally, anything over $2,500 per invoice or per item should be expensed. In  addition, any costs incurred before the property was placed into service (hard and soft costs) should be capitalized and the cost recovered over time. 

as for holding a bank account, separately for capex, it may be overkill. Generally you want to keep 5-10% per year budgeted for capex. 

I would be paying off any and all credit card debt first as that's going to be the highest interest rates. If there are any other debts, then I'd say pay those off after or make minimal payments unless they're going off to collections. If there's any medical debt, you can ask for discounts 

@John Geringer west suburban building owners with@John Warren. Straight up Chicago investor podcast also has some great people that are on there. I'd also get involved with the NBOA as well. 

@Eudith Vacio is a great resource if you're looking at NWI. She's a realtor and investor there. 

Living there and only being out of pocket 224 per month is amazing. You stated yourself the unit was previously listed for $1,550, so you're saving at least $1,300 per month in rent, so I'd view this as a HUGE win. And the fact that it will cash flow upon moving out is big too.

Id keep the down payment as is and use those funds plus savings to buy into your next property/house hack

Here's an article that goes into detail on how to handle and specifically discusses examples of calculations for 7 days or less.  https://www.therealestatecpa.com/podcasts/short-term-rental-strategies-gauging-average-customer-use/

to summarize: 

1. You would need to break the property down between long term rental and short term rental.

2. Determine average period of customer use for STR and LTR

3. Calculate how much gross rents you're getting from LTR and STR.

4. Do the math on average stay for both and combine. 

Welcome! After my first, I've acquired two additional rental properties with partners in 5 years. Nothing crazy in terms of pace but something manageable. As more time permits, will definitely be looking at other avenues in addition to direct investment (I.e. syndications) 

It really depends. You need to track your time to get 750 hours and more than half your time. Then, if those same 750 hours are on rental properties, you could qualify for real estate professional status. 

however, you need to know which hours count and which hours don't. Absolutely crucial to work with a real estate cpa that knows the ins and outs. 

@Sartaj G. I see. That would absolutely make more sense to have a company vehicle then. I'd look to make sure you document business use and personal use. Of course, personal use is not deductible.