All Forum Posts by: Dustin Beam

I do realize that people pay different income tax on their properties since deductions and income vary, but what percentage do you (anyone that's willing to answer) typically pay on rental income? I'd primarily be interested in property where depreciation deductions have not been exhausted.

You better talk to a tax professional imo

Not as awesome as I thought, but still looks like what I need with par prices. Thanks for the quick response.

@Jason Hartley, it looks like you can a full report (criminal, credit, and evictions, plus some others) with rentec direct for $15. Is that correct?

It also appears that I would enter the information, is that correct?

For the record, I'd prefer to enter the information because some people just are technology averse. And $15 is a great price for all that. Just want to verify that's the case, because if so, it looks just about perfect for what I want.

@James Wise not for me. It said quit your job, not retire. :) So I'd quit, find another job and have a little fun in real estate w/ the 300k. I also wouldn't be getting a residential loan, so it may not be an issue anyway.

@Siedda Herbert I don't believe any bank will give your LLC a loan unless it's a commercial loan.

 I'm not throwing it out there hoping it will stick, it's not like I'm eyeing am actual property.

But the idea would be, in an ideal scenario, that with 300k to play with I could find apartments that would sell at a great price for 1 million, but worth 1.2 million, after all associated closing costs. I would spend 200k on that, the lender would pay 800k. If I could then raise the ARV to 1.5 million by spending 100k then I do that.

So at this point, I've spent 300k and have a property appraised for $1.5M, and owe the original lender 800k. I then go to the bank to refinance after a seasoning period and do a cash out refinance. If a bank will loan me 70% of ARV [1,050,000], then the original lender gets the 800k back, I get 250k in cash. So in this scenario, I spent a grand total of 50k on 1.5 million dollars of property.

That's the gist of it. 

Which part isn't making sense? Finding a zero down property or making it cash flow when 100% financed?

@Lisa Misuraca, not sure what you mean. Are you familiar with BRRRR? I don't mean to insult you if you do.

In theory, I could buy run down $1M in real estate, spend 100k on fixing it up. As long as I bought at the right price and spent wisely, I could refinance and get most, of not all, my money back. If we further assume final value is 1.5M, and each unit is 50k, then I just got 30 "free" units.

Who wouldn't want that? haha I know I would :)

300k would, in theory, get you $1.5M in real estate. I'd try real had to find a smaller apartment complex to BRRRR.