All Forum Posts by: Daniel Whitmore

@Theresa Harris

Thanks, Theresa. I appreciate your insights. If I have another year where I make $40K in income (not a great goal to aspire to) I may potentially be able to avoid capital gains taxes on my stock gains. If the information online is correct, if I make less like $39,375 in 2019 I pay 0% in long term capital gains taxes. If I make more, I pay 15%. That could be huge for me considering I bought shares of Google and Amazon in 2000 (wish I bought a lot more though!!).

@Lee Ripma

Thanks, Lee. Yes I understand only I can answer these questions based on my goals. Now do I need to live in LA? That is the million dollar question I have not yet answered!!!

I moved here 2 years ago and I love it - the weather, hiking, job opportunities, interesting people, and endless activities. Plus I work in the entertainment industry in wardrobe and it’s the best place to be for that. I will say more and more big productions are moving to / filming in places like Atlanta which may be a better market for me as a newbie and limited capital. But in my gut I do feel like I’m LA right now for a reason and I’m not sure it’s time to leave quite yet. I’m also single and could relocate fairly quickly if need be.

How does one decide how much capital to invest in their first deal? What percentage of your total assets should go towards a down payment for deal #1? I feel I should plan for the worst and be as conservative as possible.

While I’m hesitant to share a summary of my financial position, this question has been burning inside me and I’m eager for some feedback from seasoned RE investors. Perhaps I’m the only person who can truly answer this one and perhaps I need to do my due diligence crunching the numbers but as I newbie I really don’t trust myself. Any feedback would be greatly appreciated. Here is a quick snapshot:

-37 years old

-Reside in Los Angeles

-Self-employed freelancer (I.e. inconsistent income)

-Currently focused on investing locally in a duplex or SFR w/ ADU.

-I need positive cash flow in the short term

Financial Position as follows:

$25K Cash/Savings

$15K Index funds

$70K Stocks

$40K IRA

$45K Gift from Grandparents for first down payment

$195K Total Assets

If you were in my shoes, and your total income last year was a meager $40K, living in one of the most expensive markets in the country, what percentage of your total assets would you set aside for your first deal?

 Thank you for your kindness and support, Kat! I didn’t realize you were in LA! I’m trying to build my network here of like-minded individuals! I have so many questions as I continue to learn and attend meetups. If you have any free time, I would love to chat with you on the phone! I will send you a direct message!

@Kat Hughes

Thanks for your words and encouragement. I live in LA and am trying to gain the knowledge and courage necessary to do my first deal (preferably a duplex or triplex).

I didn’t see a link to your vlog but would love to read about your takeaways. Can you please share?

@Lee Ripma

Thank you, Lee and thanks to all the recent responses (still trying to figure out how to tag multiple people on a reply!). It sounds like you have achieved the best of both worlds. I often read the advice in the BP forums to live where you want to live, and invest where you want to invest. My ideal situation would be to live and invest in the same area (as a newbie).

My question now is - if I have less than $100K to invest in the competitive market in or around LA (focusing on duplex), do you think it’s possible to find a deal where I achieve the benefits of both appreciation and positive cash flow?

I have yet to find something that achieves both but I am still learning the basics of deal evaluation and “running the numbers”. I admittedly also have a lot of opportunity to improve my process for finding off market leads. I suppose it will be a learning process.

Hi Jairo!

Welcome! I’m a newbie as well and have been digesting the information here on BP for only about a month (as well as reading books and attending Meetups). I live in the Los Angeles area and am gearing up to do my first deal by December - Preferably a small multi family duplex or triplex. I have a lot to learn in terms of finding and pursing leads and evaluating deals before I make my first offer.

 I am very interested in the area around Hemet but have never had a chance to visit the area. I would love to connect and perhaps grab a coffee and chat about your goals and ask some questions about that particular area. 

I don’t have any expertise to offer but would love to meet and network with you.

@Geordy Rostad

Thanks for the heads up! I really appreciate it! I’ll reach out and see if I can obtain any helpful information.

@Geordy Rostad

Thank you, Geordy. That seems like very sound advice. I have to focus on building my network. Most importantly I have to identify where I want to buy so I can network with folks in that area.

I will check out listings and purse leads closer to home and see what I can find. I’m not familiar with Hemut but I will definitely look into that area.

For me, who has yet to do my first deal:

1 - read, read and read more! (I have a long list of books I’m trying to get through)

2 - attend real estate related events / workshops in my area. Tomorrow I will go to a ADU development workshop. A great opportunity to learn and network.