All Forum Posts by: Aaron Zimmerman

I would recommend getting a real estate attorney to guide you through the transaction. You need someone on your team that has your best interest at heart.

How is your financing structured? Is it seller financing or conventionaal?

This seems like a great deal. Can you walk me through the $16,250 in monthly cash flow and how you calculated that?

Great post! It's important that people understand that there's sacrifices along the way. It's not a get rich quick game either and you'll need to think long term. 

I second Caleb's recommendation. House hacking is one of the best investing strategies investors have at their disposal. You'll learn so much about landlording that it'll help you out for future deals.

it doesn't teach you much about capital raising but learning the fundamentals of real estate is more important in my opinion. 

I would recommend reading the book on rental property investing and then his book about rental property. Both are by Brandon turner and you'll get some great ideas of how to self-manage.

Dean - happy to see if we're a good fit. Many of my clients have done the STR loophole. It seems like you're ahead of the curve with finding a way to materially participate. That said, you'll want to work with your cpa to ensure the hours you've put down actually count for purposes of material participation.

Melanie - great post. Thank you for sharing your insights here. Material participation is one of the most important concepts to understand for business owners and real estate investors. Most importantly, it's knowing which hours count and which hours don't! 

With building a network, it starts with meetups, whether they're in person or virtual. You can build your network pretty. Otherwise, you can look to connect with people on BP. Either way, building a network is crucial so you can meet realtor, lender, tradespeople, etc. 

If you're trying to invest in Virginia, it's probably worth exploring house hacking. There's people that do it each day in your market. It's a much lower entry point when you're putting down 5-10% compared to 25%. 

If you're trying to go out of state, you'd want to build the core 4 of realtor, lender, contractor, and property manager. 

Ryan - thanks for posting. I love seeing other CPAs on here and nice to have the background when buying properties. Looking forward to seeing your insights!

@Keaton Vols - it seems like you've put yourself in a good spot thus far with your first house hack.

given you don't have much for a down payment, I'd say house hacking is your next best move. If you absolutely need to, you could take out a loan from your 401(k) and pay yourself back. 

given it's a slower time of year coming up, you could find a house hack that needs some work and can do a value add. I've closed on all my rental properties in December, so a good time to buy is coming up hopefully. 

Id recommend reaching out to a lender to get you prequalified and proceed from there