All Forum Posts by: Aaron Zimmerman

For the house hack, you want to make sure it cash flows after move out. If it doesnt, it's not a good deal. 

other than that, you're on the right track! I'd even encourage you to go to 3 or 4 units if you can and you'll have more rents coming in that way 

I'm not sure of the market but insurance at $60 feels low even if brand new. 

I would add in property management to your numbers to be conservative. You will probably also want to have some sort of cleaning crew come in monthly to ensure all the common areas are tidy too. Even with that, this seems like a big win. Interest rate seems great but the 5 year concerns me a bit but hopefully you can pay some $$ down in the first 5 years

@Omar Dolmus sounds like a plan. Hopefully the meeting goes well. I would adjust the numbers now and see if it works for you. Good call on property management and including

The link doesn't open directly to the sheet. Requires access 

What kind of area is this? 
Do you have the copies of the most recent leases? If no, obtain. 
what rehab do you need to do to get the units to market rent? What rehab do you need to get it to A more livable standard?

property taxes - what are they assessed at? What is your purchase price? If there's a significant delta, then you can expect to pay more

maintenance is a little light. Vacancy could be a bit less depending on the area. Same for capex 

1. I can answer the following questions:
2. What makes a good fix and flip property?
3. What’s a good budget buffer percentage for unexpected costs? 10-20%
   
   
4. How do I find reliable contractors and vet them properly? Local meetups, other investors. Best way to vet is to see other projects. 
   
   
5. What are common renovation mistakes new flippers make? Opening up walls can unleash a whole set of challenges you didn't expect. 
   
   
6. What renovations provide the highest ROI?
7. How do I avoid over-improving a property?
8. What permits will I typically need, and how long do they take? This is local. I'd encourage you to discuss with local fix and flippers 
9. Should I form an LLC for flipping? Yes. You'd want to make sure you to discuss this with an attorney and cpa 

1. What kind of timeline should I expect from purchase to resale? Depends on the scope of the project 
2. What tax implications should I be aware of when flipping homes? (We plan on 1031 Exchange the profits for down payments on LTRs). You can't 1031 exchange flip properties to LTRs. You will most likely be paying self employment tax on the profits of the flips if you plan to make this a recurring business. I'd recommend discussing more fully with a cpa but the taxes can be upwards of 50% when you factor in federal, state, and self Employment tax 

Your cpa is correct. The losses will roll forward until you have passive income. You are still getting the benefits of real estate in the form of depreciation and it is Sheltering income, but you won't be paying less tax as a result. If you're looking for write offs, try going into STRs if that suits you. If it doesnt, you're still investing tax efficiently. 

Agreed with Michael. Better to find a real estate CPA than a regular accountant. Most work in all 50 states and especially with the changes in the most recent tax law, I wouldn't leave it to Chance 

Any reduction in housing expense is good but I'd say you're looking for the other side of the duplex to cover at least half of the total expenses on the property. The biggest thing with house hacking is saving money on rents while you live there and it cash flows after leaving. If it doesnt Accomplish both of these ends, it's not a good deal 

Welcome@Joshua Rule! I hope you have good luck with finding your property!