All Forum Posts by: Blake Dailey

As my account explained it to me when filing my taxes, with a house hack the total expenditures on the house are taken at the same percentage as what chunk of your house is rented. For a triplex I would assume 2/3 if the other two units are rented. For me, I have an attached guest suite that is 1/3 the total livable area of my house. So 1/3 of my expenses are chalked up the the rental business.

Also repair expenses and capital expenditure expenses are categorized separately because the capital expenditure expenses can be depreciated - like when you replace a roof that new roof has a useful life that can be depreciated to help you on taxes.

Keep all of your receipts itemized like that and then at tax time you hand them over to your accountant and they do their wizardry on it.

Marketing with a personal touch has fared me well. I like to include a personal touch by calling them by name, maybe signing my name, or pointing out something specific about myself so they feel like I am a real person rather than just another marketer.

If you buy right with purchasing an under-market deal, buy for cash flow, have sufficient reserves, and don't over-leverage you can whether the storm. In doing so you will be poised to come out on the other side stronger and be in a better position to buy once the market begins to look up.

Join me for a meetup this week to discuss how to keep doing deals during this time, evening with the shutdown still going on. We will have Melissa Haworth, an active wholesaler and CEO of Shorefront Restorations, join in to give her perspective on the pandemic and how it has impacted her real estate investments and how she is fighting through it by still marketing, getting contracts, and closing deals.

@Andy Nathan I met with some brokers and got a few off market multifamily deals to analyze. It looks like that may be too slim with the current lending requirements but nonetheless it was definitely worth the relationship building!

@Grayson Warren welcome to the real estate world! With getting started I would suggest looking in your own back yard. Find a local agent to send you all the deals in your market that meet your criteria, and ask a bunch of questions. Analyze every deal you can to build the skills needed to recognize a good deal when you see it. 

You can also look into the FHA loan to get into your first investment with a low down payment. All the best!

@Oscar Sosa house hack with the VA loan. That's such a powerful way to get in with little out of pocket and learn the ropes by living in one unit and renting the other.

@Jimmy Mozingo Partnering is a great way to combine forces and tackle the issue together, splitting resources and effort. If you create a partnership you will want documentation reflecting that. If you go on a deal together, I would recommend filing for an LLC and you will both be members of that LLC. This is super simple and you can do it pretty quickly online with providers like LegalZoom and Zenbusiness. Once the articles are filed with the state, you and your partner will draft the operating agreement to outline the duties and responsibilities for each partner. I have used Zenbusiness and it provides this basic document that I update myself. I would then get it reviewed by an attorney for maximum protection. This will protect you both with written, agreed upon responsibilities so that you have accountability and legal protection.

@Danny Frye I think you mean what 3rd party services will help you close that deal between you and the seller? If so, I have used a title company (in Florida) to close the transaction. I just provide them with the sales contract and they do the title work to close and create the mortgage between the seller and I. It took a couple weeks and was pretty smooth. Creative finance is a good route to go and doesn't have to be too complicated - your title company can help you through it.

@John Paniagua that's a great strategy and it looks like you are off to a great start so congrats. I am following the same strategy with 50 units or under in the South East to avoid competing with large investment firms and to find the more "mom and pop" operated properties to add value, refi to return the majority of investor capital, and then hold.