All Forum Posts by: Derrick Dill

Not sure how 7,000$ is possible. We'll say:

300$ electric

100$ sewer/trash

200$ water

100$ gas

=700$ x 4 (4 plex) = 2,800$

3 possible solutions:

1. Put your student loan on the longest possible repayment period to lower your DTI (temporarily). After you purchase the property, change it back (if you wish).

2. Credit union

3. pay off other smaller debts (Car, CC, Etc.) to lower DTI

Refinance your current FHA to conventional, buy again using your (1) FHA loan available, you'll have to move and live in it though.

property taxes are 3.5k for that property, roughly 300$/mo, you're correct! 

Very happy with returns for my Cleveland heights property regardless

Hey all,

I'm an out of state Ohio investor from California. I have a duplex in California as my primary residence, and branched out 2 years ago, working with Holton-Wise.

I mostly target B areas and have 2 properties at the moment in Ohio.

1. Parma, Ohio - B area, bought for 100k, 3/1, 2/1 duplex, both rents for 1550$/mo. Mortgage impound account is ~800-850$ including property taxes and all that.

2. Cleveland heights, Ohio- B area, 4/1, 4/2 Duplex bought for 120k, both rents for 1950$. Mortgage impound account is ~950$

Rental turnover has been less than a month for each property in the 2 years and I'm confident if there is a economic downturn/recession they will still be rented.

From my research other areas I like and considered/will continue to consider are Lakewood, Ohio and upcoming Euclid, Oh

Happy hunting, let me know if you have any questions

Depending on what state/area you live in you should do a FHA 3.5% down loan on a fourplex property and rent out the other 3 units. 25k should buy you a property for <500k including closing costs and other fees.

Lena,

I got solar 2 years ago and I still get a SCE bill, my last one was for 9$, they charge for service. I would raise rent by 100$ or so and add that electricity is paid by owner!

The most glaring loophole for RE investors is the 21% corporate tax rate. Currently if you make >416,000$ you're taxed at 39.6% tax rate, and your RE income will be taxed at that rate. If you make an LLC (corporation) your corporation (RE) will be taxed at 21%, so all your real estate income will be taxed at 21% instead of 39.6%. While many things are undecided, the cut in corporate tax rate has been a mainstay in every draft and will almost certainly be in the final draft.

Disclaimer: I'm not a tax professional, I just do my own taxes.

I house hack a duplex in Southern California and have 3 turnkey properties.

My first through Norada, Marco got me a property in Kansas City Missouri couple years ago: 5bd3ba for 100k. Mortgage impound account is for ~600$, rent is for 1100$, renters pay utilities. I like that the property taxes in Missouri are very small. 

2nd/3rd I got with Nicholas Varner in Ohio (Holton-wise), 2 duplexes, one in Parma, Ohio, second in Cleveland Heights, Ohio. Parma (B class area) 3bd/1ba, 2bd/1ba Duplex for 100k, mortgage impound is for ~800$ rents for 1600$, I pay most utilities (tax deductible at least).

3rd is in Cleveland heights Ohio, bought for 120k, 4bd/2ba, 4bd/1ba, mortgage impound for ~900$, rents for 1900$, I pay most utilities.

*note- I'm not affiliated with these companies in any shape or form other than purchasing from them. Holton-wise is not a traditional "turn-key" company, they have real estate agents, contractors, and property managers all in-house (so they can do everything a turn-key does).

The elimination of state and property tax deductions is apart of the tax proposal. My primary residence is in California, with property taxes ~5k annually. 2 rental properties in Ohio, one at 3.5k, one 4k, and one in Missouri 1k.

I'm a pretty modest buy and hold middle class investor, the elimination of property taxes will result in about 15k loss of itemized deductions for me, which is considerable.

It will make me reconsider areas to invest, and target states/areas with lower state/property taxes, and will hurt me in the short-term considerably around tax time.

Texas, NY, Cali will be some of the most adversely effected due to their high property taxes no longer being deductible.