All Forum Posts by: Aaron Zimmerman

Welcome!  Sounds like a great plan. Orlando is a phenomenal market. Is there an opportunity to add short term rentals to your future house hack? What's the availability of the inventory you're looking for?

A couple other items to add:

1. Don't hire a property manager for your first STR, at least not until year 2.
2. don't use the property too much for personal use as this will diminish the benefit.

3. Discuss cost seg with a cpa before committing. 

Welcome! There's a lot to learn on biggerpockets. I'd scour the forums and read anything that interests you and listen to the various podcasts that they have. I'd pair that with going to local meetups so you can look to build your network!

$1,200 doesn't seem too bad assuming you've factored in all expenses and you're putting down a very low down payment. Seems pretty good to me assuming the property cash flows post move out. If the $1,200 is less than you'd be paying elsewhere, I'd say buy the property!

How was the property reported on your respective returns?

Agreed on the decision to sell here. Return on equity is far too low and can definitely be deployed elsewhere.

There are obviously going to be some tax considerations that you'll want to run through with your cpa if you sell or 1031. 

I'd speak with a great lender in your local market that can educate you. They will know various loan programs. 

The two main ones you hear about are 3.5% down FHA and 5% conventional. Both have private mortgage insurance (PMI) but generally the 5% down is preferred as the PMI is usually less and you don't have to contend with self sufficiency fha tests on 3-4 unit buildings.

Congrats on committing to buying a house hack! It is The most accessible way to get into an expensive market such as Seattle is via house hacking. If you're trying to boost the cash flow, I'd say you can look into rent by the bedroom. 

As a house hacker from a tax perspective, it's crucial to identify rental vs personal use and to make sure you have the appropriate basis (which impacts amount of depreciation). 

On the tax side of things, you're effectively moving money from one pocket to another. However, the pocket you're moving it to has potential self employment tax consequences.

what id consider is: 

1. can you make the management LLC have just one member? This way, you avoid an annual filing of form 1065 and instead goes on schedule c. This will save some money.

2. Do you have any kids that can help with the management of the properties that you're managing within the LLC?

@Darius Harper - very difficult to answer without knowing more information.

What is your family situation? Is it possible/are you willing to house hack? 
Do you need the money for your next downpayment?

how much equity is in the current property?

how long have you lived at your current property?