All Forum Posts by: Daray Olaleye

Nicholas Gray Awesome! For my personally, I’d first ask what my cushion is for paying a higher mortgage. A wholistic picture of the deal (ie what are rents and expenses) would better gauge if the risk of higher leverage is worth the upfront savings.

@Keith Burton Consider house hacking if you are in a position to do so. 

@Bryce Bradshaw Don't limit yourself to insurance companies that operate in Idaho. The important thing is to expand your search for insurance companies that service Idaho and more specifically your property type. 

In the 21st century, we are not bound by geography. This is good for consumers in that you can price/rate shop far and wide. 

@Joshua Fowler

I think the first goal should be cashflow. Once you have achieved passive cashflow that exceeds your expenses then the other goals would be that much easier.

With that being said, depending on your goal timeline, I wouldn't recommend any of the options you've laid out as your first deal. Partly becuase you wouldn't see cashflow for a while dealing with building on land, renovations on the foreclosed property, etc and also partly because it's your first deal and unless you or someone willing to help you has direct experience you'll be shooting in the dark with no gauge on what is feasible and what is not which leaves lots of room for error. 

I would hate for you to be scarred on your first deal only to never return to real estate. 

House hacking a stabilized property (a bit of your 3rd option) could drastically reduce your taxes, eliminate your living expense entirely, and create positive cashflow from your tenants and the extra cash you would keep from not paying a living expense. You could create significant cashflow with just one deal. 

From there you could set your sights on something greater and start knocking out some of your other goals. 

@Jack Bailin

If it's a triplex (as opposed to a single family with 3 rooms) then you would structure it the same as any other stand alone lease. Some things that you should consider when it comes to the lease are: Inherited tenants, Pet Addendums, RUBS - who pays for water, electricity, etc. There are lots of other things to consider like late payment fees, when payment is officially late, security deposits, etc but the aforementioned are things that you should consider in your underwriting before making an offer. 

@Sheila Reyes Go for it. Do your due diligence and go for it!

John Dellinger As your first house hack, I️ don’t think it’s time to form a business entity (especially if you are financing as a primary residence). I’m not a CPA but nothing changes about your tax advantages by forming an entity. You are still privy to the same benefits keeping the duplex in your name. Alternatively, opening a business account is wise and will keep your business finances separate and easier to track for yourself, accountant, and IRS (if need be).

I'll be in town this weekend for the Memphis Invest Meet Friday and Saturday.. If you guys would like to connect there or afterwards, let me know. 

Thanks @Account Closed

I'm there! See you guys tomorrow.

@Chibuzor Nnaji Thanks for the encouragement man! You, of all people, know the grind!

@Bart H. Thanks for the input. I mentioned it in the article but my partner (the one who discover the deal) is one of the most experienced in the area. I can understand anyone's reservation if this was my deal alone, but it's not.. That's the beauty.