All Forum Posts by: Brian Adzadi

@Manuel Gonzalez

White trim always works, inside or outside. The windows are white, so it will be weird if the trim was dark. Hope this helps. 

@Lucas Stringfield

So why not do a Cash Out Refinance? I think that would be easier. Many companies should be willing to do that. 

@Davidson Francois

That is where the previous reply by @Martinis Jackson comes into play. 

@Davidson Francois

No offense Davidson, please check your typos before hitting post thread. Kind of hard what you are trying to say.

Anyway, Yes, you are right to an extent about LLCs. Its not that you WON'T be apply for a loan but its going to much more expensive. 

Mortgage companies like certainty.  Meaning they like to know who they can chase after if bills are not being paid. LLCs place a veil over who to go after (except for sole proprietorships). That is why they demand a higher down payment through LLCs. You have more skin in the game if you put a higher down payment, and much less likely to default in their eyes. 

So if you want to buy real estate through an entity without paying exorbitant amounts of money, a Sole Proprietorship is you best chance, not guaranteed it would be significantly but not as high as a group LLC.

Hope this helps. 

@Cassandra Popli

@Cassandra PopliThis truly a question for a CPA. Yes you are required to report your income from doing Airbnb. To me its justifiable to count your rent payment as an expense for your airbnb business, however, I could very well be wrong. What you can do for here on out is to set up an LLC and be doing your Airbnb through that entity. That way anything you pay that is related to your business (i.e. Gas, Electricity, Rent) is considered a business expense.

@Andrew R.

I am not a CPA but from my understanding of what CPA's have stated here on BP, you can't write off the inspection on a property unless you have actually acquired the property. Many people would be writing off inspections left and right if you can do it without actually buying a property. You would have been able to write it off if it was through an LLC, because then it would be considered a business expense.

@David J.

Stay cautious and don't rent to them. I can take maybe max of 3 derogatory statements on their history but 9? That's overkill buddy. It tells me this person is not in the least responsible. Even worse is they have a Federal Tax Lien? Means to me they are not paying their taxes. If they don't fear Uncle Sam, do you think they will fear you? Its not worth it David. On to the next potential tenant. Keep the neighborhood upscale by leasing to upscale and responsible tenants. Good luck on your search. 

@Tyre Foote

I like your ambition. Not many 22 year olds I know want to secure their future. Mainly its just Jordan sneakers and girls, LOL. Anyway, I was in your position when I was around your age. I kind of messed up my credit by not paying on time (BIG NO NO when trying to build up credit).

I joined a credit union and got a Secured Visa Card with the credit union and started making small purchases that I could easily pay the whole thing off when it came close to the end of the month.

A Secured Visa Card works by you using your own money as a line of credit. Meaning you give the bank about $500, and they give you a credit card with a max limit of $500. You make purchases with that card and then pay everything off by the end of the month. The credit union will be sending reports about your habits to the 3 credit bureaus, within a year or two, you will start seeing your score start to rise.

(Since you live in Allentown, PA you can join Credit Unions like People First and First Common Wealth)

While you are waiting for the score to rise, you start to grind, hustle, scrimp and save like your life depended on it. You put aside 20-30% of your paycheck into a savings account, you take food from home to work, you don't go clubbing unless someone is going to pay for you, you ride your bike to work and other places if the weather permits, you side jobs like tutoring or Uber. Once you have about 15K in your account, and with at least a 700 credit score then you are ready to start investing.

Sidenote: 15K is not exactly the ideal figure I want you to hit, it could be almost any amount but I feel safer with 15K.

Happy Investing.    

@Davinder Hans

I personally prefer family rentals. I like the stability of that demographic. Frequent turnovers are very low with families. Upkeep tends to be better with families as compared to students and they tend to pay on time.

Its nearly the complete opposite with student rentals, but some investors will say it all depends how you train them. That's good for them.

You are right though. The cash flow is so much higher with student rentals but just know it comes with more hands on management than family rentals.

@Gabriel Benavidez

Many of the BP members here will totally disagree with me but I say "You are young, go for it." The rant and raves from BP members will be "But you will be paying pre-tax dollar with after tax dollars blah blah blah blah." Whatever.

Listen, you and I don't have a crystal ball to say how the economy will be like when it comes time for us to retire. Do you remember the recession of 2008? People who had left their money in 401K plans lost hundreds of thousands of dollars just around the time they were looking forward to retire. Who is to say that will not happen to us when it is time for us.

You can only control things in the here and now. Besides the money you borrowed, is yours. So in essence you are paying yourself back with interest. Don't see anything wrong with, do you? And while you are paying yourself back, you are collecting rent money, you can use some of the cash flow from your rent to pay off the loan even faster. WIN WIN.

Due to your age, I would say you can take out the loan, pay it off and take out another loan to invest with again. You can keep doing this to build your portfolio. I would say otherwise if you are in your 50's or 60's.

I took a loan from my 401K to purchase my first rental and I don't regret it.