All Forum Posts by: Cody Morrell

Quote from @Scott E.:

My 2 cents is don't get too hung up on the tax side of this business.

If you're making enough cash flow from your rental properties to replace your W2 income, you're in a position where you can consider leaving your W2 job to pursue real estate investing full time.

I actually left my W2 job without replacing my W2 income with rental income, but I instead had enough cash set aside to cover years worth of living expenses, which is what gave me the confidence I needed to leave.

Leave the tax concerns and legality of things to the professionals (your attorney and your CPA)

 @Scott E. Because I know the “general rule” of not mixing personal and business finances, how to I set aside money when it says not to. Can you leave the rule in place and explain to me how it works? That’s more so the answer I am looking for. Make it make sense. 

I was curious if anyone could help me out with answering a this question: How do you quit your W-2 through REI?

I have read THE BOOK ON TAX STRATEGIES for the Saavy Real Estate Investor and it made me wonder how a lot of you on the BP site are doing it. Isn't it a general rule not to mix business/personal finances for tax implications? If you are quitting your job because you have enough income through rental properties and you're not supposed to co-mingle business/personal finances, then how are you doing it?

Sorry, this may be a stupid question and simple to answer but I can't wrap my head around it.

Thanks in advance

Quote from @Andrew Kennedy:

Biggest challenge: I have capital to purchase a few properties outright. I understand the BRRRR method, but when it comes to turnkey, rent ready properties (maybe the have minor cosmetic fixes like paint/carpet/landscaping) I'm at a loss. If I purchase the property outright, learning about refinancing or using a HELOC to reclaim some of my investment capital to move on to the next deal is a bit concerning. My concern is ensuring I get the best opportunity to reclaim my capital without busting my cash flow. So for me, talking to lenders about all of the possible options is a little intimidating at my point in my real estate career, but it is something I need to do.

What I would like is getting education without actually doing the actual refinance so when I actually go to do it, I understand all of the ins and outs. But, learn by doing is best so I just need to get over that. 

Your last sentence says it all. It’s a “just do it” game right now. What’s it hurt to go see what the numbers look like and go from there? All it would cost you is time - Free education

Quote from @Trevor Riley:

Quote from @Cody Morrell:

Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.

Also, getting my head out of my backside and starting to take the steps to get my first rental. 

 Thanks for sharing, Cody!  It looks like you have an idea of what criteria to use.  What would give you the confidence to know that you have the right criteria for you?  Is that the only thing holding you back from starting to take the steps to get your first rental?  You got this!

I appreciate the encouragement, Trevor! 

Repetition in analyzing deals would give me confidence and also going through the whole process of getting pre-approved, getting the right leads, making sure the numbers work, putting in offers and succeeding. Pretty much doing the whole LAPS process. 

So far I am one step in with getting pre-approved and I already have a local investor/agent I’m going to meet up with to help me with leads!

Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.

Also, getting my head out of my backside and starting to take the steps to get my first rental. 

Quote from @Ali Boone:

Since @Charles Carillo hit all the good ones, and you already said Rich Dad Poor Dad, can I plug my own book? ;) It's on Amazon- NOT Your How-To Guide to Real Estate Investing: Life Lessons on Hacking Your Mind Before You Hack Your Wallet.

Also, any idea what strategies you're interested in or what you'd like to learn from books? That will make a difference for recommendations, too.

@Ali Boone

Mindset is huge! I’ll have to check your book out. 

Anything BRRRR, STR, LTR, and mindset related. I'm a newbie here so I'm trying to read pretty much anything but I plan to focus mostly on BRRR.

Hello everyone, 

I wanted to get your opinion on what you guys think are the best books to read for knowledge on REI. I am new to the game so I have not read many but I can say Brandon Turner's book, The Book on Rental Property Investing, had me hooked the whole way through. From several threads I have seen it has impacted a lot of people in a positive way - along with Rich Dad Poor Dad. 

What are your favorite REI books that have impacted your life or success in real estate?

@Steven Foster Wilson 

I have read that book, along with the Cashflow Quadrant and Brandon Turner's book on rental properties. I am about a handful deep on BiggerPockets podcasts. Not sure where to start though. I have heard Brandon Turner's episode on BiggerPockets are can't miss compared to what they are now so I am caught in that dilemma. 

Thanks for the advice - that's an amazing story!

@Nathan Murith Thank you! I am excited to start on this endeavor.

To answer your questions:
I over-analyze everything. I think at this point I don't understand everything fully. What/how to analyze a property, loan strategies, whether cash flow or appreciation is better, etc.. I do not have a team set up. I met with a local successful investor in my area who is also a real estate agent so that was a start. I understand your concerns with the BRRRR strategy. I feel like I just need to keep an open mind at the moment as I'm first starting off.

As for STRs, the AIRBNB business locally has been successful from what I am hearing. I have also been scoping out the Terry Peak area down in Lead, SD. 

Hey, all,

My name is Cody and I am an aspiring real estate investor from Bismarck,ND. I am not sure how to get started and I feel like I am having a lot of paralysis by analysis. I would like to use the BRRRR and STR strategies to build some extra income so that in 5-7 years I can leave my current job. Any help would be greatly appreciated!