All Forum Posts by: Adam McCarty

@Brandon Ingegneri @Linda Weygant

Thank you for the input. It was just an idea I had that is why I was looking for input from others. 

@Dustan Marshall

I guess my goal is to get the tax benefits of a rental property in my own home while also getting the equity out of the house tax free. So I could write off all future renovation as an expense and I would get to depreciate the value of the property. 

So here is what I am thinking. I want to sell an LLC the house that I have live in flipped for market value today and rent it to myself. I would like to owner finance it as we have very good rates on it. I have lived in it for two years so I should be good on not paying capital gains as they are significant. There are still several things that we want to fix up still so it would be nice to be able to write those off as well as depreciate the house. Any ideas on how legal this would be or if you are in Iowa if anybody would know some good professionals to talk to. Also if we ever wanted to pull equity out would I need to do that before selling it. Thank you for any input you might have.

 You could still refi the home pull out the 50-60k and get the down payment for the same upfront cash as selling out right while still making money monthly off the higher interest rate you would be charging. 

I am not sure on the down payment how that would or should be handled but the garage could be a head ache for you. My guess is the city you live in will require permits and may limit the size and location of such. That being said if they do build a garage and the deal falls through you now have 20k and a garage on the property that you didn't pay for. My thinking is it will be very hard for you to lose on this deal unless they would trash the place. 

So I just getting started in REI and was initially thinking I would start by rehabbing some home and make some money and then start getting some multi family homes after this. I have been listening to a lot of the pod cast as my commute recently has been an hour and a half both ways. This has made me start thinking that I should just start with the multi family units as I am a little worried about a down turn in the market again. I am just curious what some of your opinions are. A little background info on me is that I am in the construction industry. My wife and I both have good paying jobs and we have money in the bank and equity in our home thanks to my first investment of a live in flip. I feel confident that I can find good deals and know them when I see them for flips as I made 150k on this one. I have been looking at houses for years but could not get my wife onboard with investing until now. Any input would be appreciated.

it is pm

if any of the Des Moines people want to meet other bp folks we are meeting tomorrow at 5:30 at the caribou coffee on ingersoll Ave. feel free to stop by it is a lot of fun

@J Scott @Mindy Jensen @Derek T. @Joe B.

Thank you for the quick responses. I was thinking many of these same things ecspecially about holding cost and taxes for that long. I had never even thought about landscaping and lawn care. Thanks for that J Scott. I am going to look at it tonight but will be much more warry now. I really need a good idea on all that needs to be done. 

Mindy I have not gotten comps yet but it is something my realtor is supposed to have with her tonight. My biggest thing of concern was days on market. Again thank you for the quick input. 

Ok so there is a forclosure in my area that has been to auction 4 times and hasn't sold.  It is in the top 1% of house values in the area however. It has a lot of problems including bad mold through out the basement. I have yet to be in the property but if I can get it for the right price am I crazy to take on this kind of project. I could see it taking over a year in the market just because of the price of the house and also a large reno but the profit potential could be 200-300k. I have already done a reno with a lot of the same problems but just not on this scale. I also know I still have a lot of due diligence to do but just want to get your feedback before I spend a ton of time on it