All Forum Posts by: Bryant To

Hey @Gabriel Rodriguez, 

I'm a newbie myself still looking to get started, but I do want to say congrats and good job on taking action with the turnkey properties! I considered doing turnkey myself, but decided that I'd like to start with a house hack before I attempt out-of-state. 

It sounds like you have a good reason for investing in Memphis. Out of curiosity, what made you decide to purchase a turnkey in Dallas? 

And I'll be sure to check out your post on your turnkey break down! Good luck with your hands-on deal -- I'd love to connect and hear your stories as you progress! 

@Dave Toelkes 
There's no issue and no proper investment motive behind moving my parents. They've always had an idea of a "dream" house is all and I wanted to give that to them, if I can, while they're still physically able-bodied and can enjoy the charms of a spacious, modernized home. Our current home is a nice home in a nice neighborhood, but it was purchased as a family home to raise me and my sister as opposed to something that my parents truly loved. And they also don't any particular attachments to this home (e.g. church/friends nearby) other than the sentiment behind witnessing my sister and I grow up.

That said, my topic is out of curiosity to see if there's any creative ways I could leverage the current home to reduce expenses (other than buying a new home and renting out the current home traditionally). 

@Dan H. That was a great in-depth explanation -- thank you for taking the time to elaborate that.
I certainly did not factor in the idea of depreciation as well as all the risks, but I will keep it in mind now and in the future. I'll keep low for now and keep an eye on the market and factor in risks for any moves I plan to make. 

I truly appreciate all the insight! I'm glad I made this my first post as it enlightened me on how truly novice I am. 

@Dan H. Thank you for the info and insight! 
Both the capital gains exemption and HELOC vs refi info are helpful to know.

You're absolutely right about the plan being highly dependent on appreciation and big negative cashflow. I wasn't planning for this to be a cashflowing deal per se -- just an idea I'm exploring to give a new home to my parents and maybe leveraging their current home in a creative way, if possible. But I realize it's not a great idea for cashflow -- I appreciate that you called this out.

On a side note, could you elaborate more on the "depreciation cycles"? Is this related to how the Straight Line Method is calculated (# of months you use a property to produce income)? I'm familiar with depreciation in general as a tax write-off at a high level, but that's about it. Any pointers to resources would be appreciated as well! 

- Bryant 

Thank you all for your generous input and words of encouragement! I genuinely appreciate it. 

@Nicole Holcomb I currently am not working with an agent, but it seems @Twana Rasoul may be able to help! I did a little of homework myself to do a ballpark check on how much rent could go for via Rentometer as well as a quick skim on CL for home rentals with the same # of bedrooms. It could go for somewhere between $2.8k (Rentometer) to $3.2k (listing on CL), which won't be able to cover mortgage with a 20% down but from the perspective of "paying rent", it's not bad at all. I can supply further details about my parent's home at the bottom of this post! 

@Andy Eakes Thank you for the incredible list of insight and information. I actually had not thought of 1031-ing the house! I've been mulling over it and while 1031-ing would definitely help me keep upfront cash to use towards other investments, I do like the idea of keeping this house as a long-term hold primarily because of it's prime location. 

BRRRR sounds like a great option! I'll definitely need some actual numbers to crunch to consider the logistics, so I will be looking into this. We do have a garden shed at the moment ... maybe this can be replaced with a small ADU. Definitely worth considering and looking into!

Broad property details:

So my parent's home is a 3BD/2BA located in Clairemont, which seems to have a very low supply from what I can tell from the MLS. It's near all the major freeways and I would consider it a pretty nice area. That's why I'm considering keeping it as a long term investment -- it's quiet for families and close enough to a lot of food areas (e.g. Convoy) and cool things for younger folks. It's not hip like North Park, but I'd say it's a solid area.

@Twana, I'm not sure about the size so I'll look into that, but I will PM you with more information! 

@All, just to spew an idea, in what case would a HELOC or Home Equity Loan be beneficial over a refi? I'll do some perusing on my end tonight to try and answer this myself, but insight would be helpful! I've heard of HELOCs here and there throughout podcasts, but I'm not familiar with the minute details of it.

Hi all, 

A little bit about myself, I'm a newbie ibased n San Diego, CA. I've been listening to podcasts and trying to educate myself for a while, but have been stuck in analysis paralysis with all the shiny paths I could take in real estate. 

I'm currently in the phase of educating myself with regards to long-distance investing (BRRRR) in the midwest, but before I move in that direction, I wanted to buy a nice, new home for my parents. I realize this is a non-investment property, but it was an eventual goal of mine and they are nearing retirement age so I don't want to wait until they're too old to buy them a home.

That said, I have a lump sum saved up (and financial support from my parents) to buy a non-investment property. 

 - Between me and my parents, we can afford to do a conventional owner-occupied loan. But out of curiosity, I'm wondering if there might be a smart/creative way I can leverage my parent's current home (which is fully paid off and in a nice area of San Diego)?

- I'm not sure how appealing my parent's home is for a renter. Some of the interior is a bit outdated (namely bathrooms) but they do function fine, so I'm not sure if it's necessary to rehab this. Should I have someone (I would guess an investor-friendly contractor?) take a look at the house? 

I would appreciate any insight/constructive criticism on this! :) 

Regards,

Bryant