All Forum Posts by: Eduardo Bilbao

Quote from @Kenny Dahill:

@Geri May, tons of solutions out there from payment apps, bookkeeping software and property management software.  Is there anything additional that you're looking for or just rent collection?

I'm biased on which tool I use to collect rent but I'll provide some value for all property management software's (PMS).  PMS is designed specifically with rent collection in mind, unlike peer-to-peer apps or bookkeeping.  Majority of PMS utilize the same payment API (Stripe is popular).  I'd look for my PMS to have email reminders to tenant, automatic rent payments, automatic late fees added and allowing tenants to pre-pay rent if they wish.

Stripe is a software that includes automatic late fees and automatic rent payments if tenant opts in? If yes and you use it would you recommend?

Quote from @Karla Simmons:

@Theresa Harris

Turns out she did have a lease buy out clause. I didn’t know such a thing existed. I do not have such a clause in my leases, but from what you are saying it sounds like tenants will risk it anyway and just forfeit their deposit. Times have changed. It used to be that a one year lease was just that and people didn’t think about breaking them, or at least most people. Thanks for your input.

We as landlords have to protect our investments. It takes time and work getting new tenants. Some people are extremely picky and will want to just get out of a lease like nothing would've happened. When you are not a real estate investor the mindset of how much work it takes and the things that could happen doesn't even cross their minds.
I have seen many contracts and some that I really like are the buy out clause and also the lawyer fee clause where if due to the tenants fault we have to go to court due to either property damage or eviction they would have to fit the bill. That is one more incentive for them to be good tenants. I am not a lawyer just my two cents. 

Quote from @Chris Coffman:

Thanks for the input. I'm at 3.625% right now. I think it might go up a bit. I don't have this one with my credit union and I believe I'm going to go to them for this one. 

I think you are in the right track. 

Good Luck !!

Like stated above by @Bruce Lynn, FHA you need to live there. I know of a friend that what he does is the following: He gets the money in his bank account, then he lets it age for 2 months because usually to my understanding banks usually dont look past that. Then he purchases a property utilizing that family money that aged in the account as down payment. This friend then has an agreement/contract between family member x and him where he pays family x an interest rate of 5 to 12% on the downpayment money. BUT family x does not have any access to the equity that will be created when years pass.

Maybe this can be an option for you? 

It is also important to put all expectations on the table and know all the (if this then that scenarios). You could actually get a real estate lawyer to create a contract between the two of you to make it more formal. 

MY two cents, will follow the post to see what other BP members have to add. 

A good book to get started with is ABCs of buying Rental Property by Ken McElroy. They have a series of books that where my foundation to do so. Also the book Multifamily Millionaire shows guides you on how to do market research. I would say almost every real estate investing book shows you or guides you on how to do so before you pull the trigger. 

Quote from @Ryan Moyer:

How well themed are we talking here?  And is the game room garage finished off with HVAC/drywall?

I have the larger model up from yours (9br), very well themed.  I went live in October.  My target was 156k and so far I am on pace for that.  The 7brs don't rent for quite as much but the difference is not that big.  With self management or good management and well themed place you can do very well there.

This is my place:

★★Cosmic Villa★★ Amazing Theme Rooms, Arcade, Pool - Villas for Rent in Davenport, Florida, United States

Did you hire a designer for the set up of the property?

How much do you pay for cleaning if you dont mind me asking?

 Nicely done btw!!

Quote from @Ed Tamayo:

@Michael Garrett

Good start by thinking that 401K is norm the best option.

Can you move the 401K to an ira ? ( 401Ks with current employer can't go to an IRA)

I would convert whatever posible to an IRA and then to a self directed IRA. You can then buy a house without have it paid taxes or a penalty for cashing the 401K.

The rent money stays on the 401K but you need to save money for retirement anyway….

So you purchase real estate inside the IRA? What happens with taxes, depreciation and all the tax benefits?

Hey congrats on pulling the trigger! It seems like that is the hardest part for many. 

To my understanding: 401-Ks were created with the purpose that you invest pre-tax so that when ever you retire your tax bracket will be lower therefore your money grows and when you pull it you will pay less taxes. Now if you are investor in the process of creating multiple streams of income and you plan to retire and still make more money than what you make today then you will end up paying more taxes if you are successful. 

We are so due for a correction and many investors have a feeling that it will be coming very soon. (No one really knows). If you get out of it today you would be getting out at the top of the market. Unless they keep printing trillions, but we know that they plan to taper QE and increase interest rates to fight inflation. Before you make this decision you need to know that you will pay penalties and fees. 

I personally decided no to invest anymore in stocks, 401-k or 403-b. I am 31 y/o and rather invest in crypto and real estate. Funny to say that I rather invest in tangible assets because I also love crypto haha

I do like your idea of pulling the money to buy multiple properties and get the cashflow. Your stocks technically would continue to grow but your properties will also continue to appreciate. Also once you stop pre-tax investments your income is higher therefore more room to get mortgages.

A though here: Maybe if your wife quicks her job she could become a real estate professional and start really getting some big tax benefits. You can read Tax Free Wealth by Tom Wheelwright which is Kyosaki's CPA. Great book!! Or you can google real estate professional tax benefits and I am sure you will find plenty info. 

I hope some of this can help, 

Good luck!!

If she is doing it legally following the clauses of the contract I don't see why this would be a problem. Maybe an option could be to talk to her and be honest. Tell her that situation raised a red flag and maybe ask her for a little larger deposit? I mean as long as you have a solid contract in placed you should't be affected. 

I don't know if this will help but for example: I have a house with a 2.75% interest and was trying to re-fi to get some equity out of it and my mortgage broker pretty much told me that it might not be worth it because my interest will go up to the 4% or so. I don't know what your interest rate is but if it goes up like mine it might not be worth it. Just make sure to put all your numbers together taking into account all the costs of the refi.