All Forum Posts by: Joaquin Camarasa

Some condo associations allow for 6 months leases. The average stay for MTR in our area is 3 months. I don't think MTR is a good strategy for condos due to this limitation. In terms of the monthly condo fees you need to look at the finances of the association as a whole and try to estimate future projections or potential special assessments.

Your approach sounds reasonable. You’re covering all the key points, proper notice, screening of any replacement, and maintaining tenant responsibility until a new leaseholder is officially approved. Just be sure to get everything in writing including any addendums to the lease and you should be good to go. 

Make sure the current tenants understand all the conditions needed for somebody to be approved as replacement to avoid drama later.

Enhorabuena Ale! Thanks for sharing your story. Excited to see where your leadership takes this great community.

Muchos exitos! 

The biggest challenge with out-of-state investing right now is also making the numbers work. You also need full trust in your agent and contractor, things can go wrong fast if details are missed. Bad tenants or big early expenses can cause a lot of stress.

I have a property in Colorado, I initially bought it as a househack, now it's rented (managed by a close friend) and two here in Springfield, VA that I manage myself also bought as househacks. It works because I knew what to expect when I purchased so I prepared accordingly.

I’ve seen people chase better returns in riskier markets and run into trouble. If you go out of state, be there for the purchase and really learn the area to avoid surprises.

Hey Jake,

Unfortunately our area is extremely challenging for multifamily unless your budget goes over 900k. You have three options below the 700k range. 

1) Attempt a househack with a townhome or single family home, best case scenario you could be looking at covering your mortgage by 60-70% if you are ok having roomates. If you rather don't have roomates and would prefer having your own space, for instance, renting out the basement you are likely looking at 40-50% best case scenario. There are different strategies to accomplish this.

2) Purchase a 1 bed condo and play the long game. It will appreciate less than a townhome or sfh. 

3) Invest out of state. I wouldn't recommend as a beginner investor but you might contact agents and other investors in other markets to see how things look like. 

Reach out to a lender, see how much you qualify for and check your total monthly expenses in the event you'd purchase a property. The numbers should speak by themselves. 

Hi Dania,

If the first property isn’t cash flowing or breaking even (especially after utilities), it might be best to hold off on a second purchase for now. Managing two properties without solid cash flow on the first one can be risky.

Check if you're near 20% equity — removing PMI could reduce your monthly payment and help you break even. That might make another house hack more feasible later.

In the meantime, continuing to save or investing in something more liquid like the stock market as it could give you more flexibility down the road.

Make sure the basement area has egress and it is up to code to be considered a livable space. 

@Erwin Groenendijk just reread this and understand that as an SL I would be able to deduct expenses. Thanks Erwin, always very helpful.

 Thanks for sharing Erwin! 

I have a couple more questions on the subject. 

The 15% and eventually 25% on the third year. Are you taxed on the net or the gross income produced as a non-resident ?

May you deduct ongoing costs from the property like mortgage interest, replacing appliances, property management costs, etc with an SL?

Here in the US you are taxed on the net, as you can deduct mortgage interest or any repairs you might do. This would be interesting to know.