All Forum Posts by: Daniel Tisdale

@Dennis M. @Joe Villeneuve can y'all elaborate on your thoughts around this please? Thanks!

Hi,

I have been presented with a very unique and rare opportunity to purchase the home right next door to me in a very hot neighborhood in Austin, TX. Because of this opportunity to potentially sell both lots to a developer, I am very keen on trying to make this work for the first few years because of the potential long term upside. The one downside that I see to this strategy is that after accounting for all expenses, mortgage, insurance, taxes, etc, there would probably be a negative cash flow of around $400/month. Normally, I would absolutely run away from this deal because of the negative cash flow, but I foresee the Austin market continuing to boom and I could potentially raise the rental rates over time and generate positive cash flow. Does anyone have any advice for me regarding this type of deal and thoughts on it?

Thanks,

Daniel

Hi @Ross Denman, thanks for the advice! That's something that I've thought about doing, but since we are planning to scale this business up in the coming years. (I am 27 and he is 25, so the hope is that as our income grows from our careers, we can add more properties together.) Would it make sense to create a separate LLC that I control solely and a joint one for the properties we are splitting?

Thanks,

Daniel

Hi,

I'm a newbie real estate investor and I'm looking for some guidance on how to structure my partnership on a rental property with my brother.

A little background on the situation:

• Myself and my brother will be partnering on the down payment for a SFR
• The mortgage on the property will be solely in my name
• I will be putting in a greater amount of the down payment, so I want to structure the terms of the deal, so that I own a higher percentage of the deal. (At least at first)
• My initial plan was to create an LLC that outlines the terms of the equity structure
• Our goal/hope is to continue to acquire properties together over the coming years, but I will most likely be putting in more capital over time

Does this seem like a reasonable approach to take? This will be my first rental property, so I wanted to make sure that I am going about this the correct way. Is an LLC overkill for this type of arrangement?

Any and all advice is greatly appreciated!

Thanks,

Daniel

Thanks everyone! Really excited to get more involved and I appreciate all of the nice welcomes!

Sounds great @Scott MacDonald! I unfortunately have an obligation on Wednesday evenings from 7-8 PM until early August, but would love to catch the later half of this meeting and future ones until I have more free time.

Hi @Scott MacDonald, I'm a new BP member and recently bought my first house in South Austin. Would love to be part of the next meetup!

@Aaron K. Thanks for the info! Yeah I've been keeping an eye on the Austin market for a number of years now. Having been born and raised in Austin, I have seen the dramatic change in property values over the last 25 years and especially in the last 5-10. This has made me start to consider other cities in the Texas area, including San Antonio, which isn't too far from Austin. I am definitely wanting to invest for cash flow, so it is seemingly very hard to find a good deal in Austin right now.

Hello everyone,

My name is Daniel and I'm a new member to the Bigger Pockets community. I recently came across the BP podcasts for both real estate and personal finance and have become obsessed with the concept of using real estate to become financially independent. I just recently purchased my first home in South Austin and I'm looking to get into rental properties now, either a single family home or a multi-family property. I am a UT graduate working in the tech industry now with the hopes to break into the real estate investing industry. Any and all help/tips/advice is greatly appreciated and I look forward to learning more about the industry!

Excited to get to know more about the community here!

Daniel