All Forum Posts by: Bobby Shell

Earlier he mentioned $120 monthly about 10% cash on cash.

@Ashley Wright good Q. There is value. Make sure when running your numbers to include having a property manager. This way if you self manage and hen decide not too you have the freedom to do so without losing cash flow.

 BP obviously :)

Lifetime of Cash Flow Through Real Estate - rod klief (podcast)

Tax Free Wealth - book by tom wheelwright

cash flow quadrant - Robert Kiyosaki 

I also loved David Greene's book on how to invest in real estate out of state! He talks about how to manage people and teams. I think it is great because you learn how to manage everything even if local.

I forgot to mention we are in a high-income tax bracket. I also want to write this off to lower our taxes etc. so that plays a major role in our decision as well. 

Long time listener, I have a newbie Q though. I know the answer is "it depends on your personal goals" but hear me out.

What are the disadvantages of putting 30% down on a rental property? (here out my story below)

I am looking at a new build in a gated community in my hometown in Florida. I live in Colorado now. 

My father is a real estate agent of 15 years in Florida and he is helping me get this property. It is in the neighbourhood my father lives in as well which is great for us long term if we move back. This will be a second home we plan to stay and visit once per year between tenants and when it is empty.

I was going to put 30% down because I have a great income with my wife and myself combined. This property would cashflow at 30% down more than 25% down obviously. This extra 5% equates to about $12,000 more in down payment. with it being a new build there should be fewer things needing to be fixed etc. Lower home insurance and the other benefits of a new build.

I just wanted to hear what the community things and if there are major red flags to putting more than 25% down. I like the security of it being a new build, fewer issues etc. And I do not mind putting more down to secure more cash flow and get it paid off SOONER. I love that security. 

I truly appreciate your time and comments!

Does this mean it can not be done with a current employer? Thanks for sharing your insight Tony!

 Thanks Winnie. What was the rate you got since it was your own 401k money? Someone here said the interest is paid back to yourself? That sounds too good to be true. Is that what you have seen as well?

Natalie. Thank you! That makes sense. They didn't go that deep in the material I was listening too. Thank you

Thanks everyone. We have the cash now for one rental we are currently on the hunt for, but was really hoping to rope in a second. I meet my cpa next week and will look more.

Apparently with the new tax law according to different podcasts I have been listening too you can depreciate a property year one for 100%. Maybe I did not understand and they were overhyping. I figured I had to ask to know for sure. Appreciate your feedback

Listening to Robert K (Rich Dad) and his partner Tom Wheelwright they said you can take money out of your 401k and take the penalty, but then buy a rental and depreciate it the first year to offset the loss where you end up paying no taxes.

Does anyone have proof of this or can you debunk it? I am going to talk to my tax professional but wanted to open up the conversation and hear if the community has experience with this new tax law.

Thanks!