All Forum Posts by: Account Closed

@Steven Hamilton II Ah, that is very helpful! I will remember that and turn my research in that direction. Thank you.

@Robert Leonard @Steve L. Thank you both for your responses. So in a nutshell, unless I sell the property within 5 years of purchasing it, then I am not required to stay in it for any longer than 1 year. However if I move out before 2 years is up, then end up selling before the 5 year mark, I'll be taxed on my gain.

Please point out any flaws in this plan: Buy/live in/rehab one property per year. Then after I have acquired x amount of properties, incorporate (where x will be determined with the help of my attorney & CPA).

I realize that buying with less than 20% DPs subtracts from cashflow, but what I'm seeing is that in 3 years I'll own 3 properties. It's hard to wrap my head around since I've never done it before, but what I see is this: In the next 3-4 years I could own 3-4 $100/month cashflow properties (I definitely won't knowingly buy anything that brings in less) OR save 20% for one--I used my current income to calculate these numbers. Thoughts? Wisdom? Is it worth it to take a few years to save up for a higher DP?

I guess I could also still hold to the every two years mark, that way if I run into trouble with a property I can sell it and keep the gain. I think this is where someone will step in and say, "You can make 100 plans, but if you don't start and stick to one of them, you'll just keep running in circles!"

I am planning to invest in real estate using the new every two strategy with a twist. Instead of selling after two years, I plan to keep my previous properties as rentals. I have a full-time job, so saving up 20% down payments (which is required now for investment properties, right?) will take more years than I have patience for unless I'm buying $50k houses. I have two questions (well, three if you include the one in the last sentence):

1) Am I correct in assuming that I must remain an owner occupant for a minimum of two years? I know that's required if you're planning to sell, but I'm not sure if selling is the same as just moving out & moving someone else in.

2) How and when does incorporating come into the picture with this strategy? I am in Virginia if that has an effect on the answer.

Thanks!

Welcome, Brent! I am a new investor as well, and am focusing in the Roanoke Valley area, particularly in Salem.