All Forum Posts by: Brenda Reems

@Drew Sygit thank you for your response. I definitely am not using real estate as a get rich quick strategy. I know it will take time to learn and grow. I have had a bit of analysis paralysis. I have listen to all the podcasts, books, forums to try to learn as much as possible. This 4 plex is not a slam dunk. But, I do feel good about it. Especially as a MTR. I do have plenty of reserve cash to pay for the PITI and my own living expenses as of now. The podcast mentioned as a late starter, most people should lean more towards appreciation vs cash flow. I didn't know if that would change if you were a higher income earner? As mentioned, I do not plan on replacing my current income with real estate. I want to supplement my retirement, have some reserves if I am out of work for an extended period and maybe "retire" a little earlier.

Hello all! I was listening to a podcast regarding strategies for starting real estate investing “later” in life such as cash flow vs equity.  But, I haven’t found one that takes into account a high income earner or one that puts the 2 together. What would your suggestions be for me? These are the reasons I wanted to start this journey. 
1. I’ve always been interested in real estate. I am the person that would go to open houses…just because

2. I am a 1099 contract worker. I don’t get paid unless I am physically present. I have to have 6 months reserve at all times. I thought real estate could help in the case where this may happen and it could extend my reserve longer. 
3. I like the tax benefits real estate gives. 
4. I thought I could teach my kids there are other options beyond a W2 traditional job. 
5. diversification of my retirement and maybe help me retire a little earlier or decrease the amount of time that I work in 10 years or so

I know I will not replace my current income with real estate as I am a higher income earner. I like my job but I want to have more flexibility as well. I am closing on my first 4 plex at the end of the month. It's a 5 year arm, amortized over 25 years. I was going to just put 20% down but if you were me, would you consider putting more down for a higher cash flow? Or keep 20% for a higher ROI? As it sits, it is a slightly more than a break even but I plan on converting some units to MTR after tenants move out

I want to learn the ropes of property management before I buy another property but at the same time still looking for my next deal. What type of deals would you look for?

Any good articles…podcasts that addresses strategies in my situation? 
thanks in advance!

@Michael Fraulo is there software that does it all but still reasonably priced for new/smaller investors? I’m just starting up but I will have 4 units. Currently as LTR but plan is to convert to MTR. It would be nice to have it ALL in 1 or 2 software system. 

@Wesley W. thank you so much for this. My plan is to actually turn most of these units into a furnished MTR. There is a big need in this area. So, my plan was already to renovate and furnish. I did want to wait a few months just to get “settled”. But, this was going to be the first unit where I didn’t want to renew the lease. I just really hope it doesn’t come down to an eviction. I have read ALL the books. But, I have not put anything into action yet. I am just hoping that my eagerness to buy a property isn’t clouding my judgement on wether this is the best one to start off with or if I should just find a new one. 

@Theresa Harris, I wasn't able to get into the unit when I initially saw it. I had it written in the purchase agreement that my offer was contingent on viewing the unit. I wasn't able to get into it until Friday. It's not that I wanted the unit vacant. I wanted to make sure that the unit wasn't in shambles and tons of extra repairs were going to need to be made. But, I also don't want to inherit a problem tenant that I may have to evict right away. They are on a month to month lease. They have been in it since 2022. Their deposit is $500. There will probably be $5,000 worth of repairs that will need to go into it when they do move out. That's if I can even get them out without going through an eviction. Their estoppel said that they are current on their rent. I have reached out to the current management company to see if they (plus all of them) have been on time with payments or if they have had any other issues. However, I have not heard back from them.

I am under contract on a 4 plex. I was not able to get into one of the units initially because the key that the property management company had was not the correct key (the tenants changed the locks). We could tell that there was a tenant inside but they would not answer the door. I did proceed with making an offer with the contingency of seeing the other 2 units that I was not able to get in to.

We had the inspection on the property on Friday. The unit in question is in complete disarray (think hoarder house). The cabinets were still in good shape but mold in the bathroom, stuff EVERYWHERE. So, much that the inspectors couldn't get a full inspection. But, my biggest concern is that the new key that was given to the property management was still not the correct key. The only reason we were able to get in was because the son was leaving. 

I am set to close on August 1st. Would you insist the tenants move out before closing? They have been there since 2022 so they are on a month to month lease. Or would it be OK if I let them go for a month or 2 until I get settled? It's my first property and I don't want to have to deal with a possible eviction on my first property. I have the money to be able to fix the place up right away however I would really prefer to do it this fall verses right away in August.

As always, Thank you for your help

@Basit Siddiqi I don’t NEED to add him as a partner. However, if he will be doing work for the property, I feel he should have some stake in it. I also plan to expand the portfolio if everything goes well. If that happens then he will most likely continue to be involved. We are both higher income earners so we have more opportunities to expand than others. Eventually he will have more opportunity to make financial contributions. But, just for the temporary future, he is not able to do some other circumstances. I could be wrong but it might be easier to add him from the beginning verses trying to add him later. I know some people will set up new LLCs for each property but I don’t know how that works when you want to use the cash flow as income for future commercial loans. I know that usually you need to have 2 years worth to be able to claim the cash flow as income. But, I don’t know how that works if you have numerous LLCs. 

@Ashish Acharya thank you for your response. It is greatly appreciated. 

@Michael Fraulo Thank you very much for your response. This is what I was thinking I should do. But, I just wanted to make sure there wasn’t something I didn’t think about. 

I am under contract on my first 4 plex. I am set to close on August 1. I have a long term significant other that I would really like to be involved with the business. I want him to have some financial gain as he has a lot of skills that will help with my success. This is what we both will bring to the table. 

Me: I found the property, I am funding the loan and most likely any initial set up costs. The building is fairly turnkey but will need some minor upgrades. I am furnishing 1 unit to begin with. I will also be doing the majority of the managing.

Him: He is much more organized than I am. He is great with computers and spreadsheets. Very handy when it comes to fixing things. I think he will really be essential to making sure the business side is operating smoothly and that this will ultimately be a success. 

I originally planned on doing this "on my own". However, I do know that my biggest chance for success will be if he is involved. He is a "higher" earner. So, I don't want to just higher him. Ideally, I would like him to also get tax benefits. I was just going to start an LLC with my name only. Do I put him on the title with smaller shares? Do I add him as a partner on the LLC? I have tried researching this but I am falling short on finding answers.