All Forum Posts by: Edward Adams

Congratulations on starting your real estate investing journey! As for other cities to consider for cash flow, some popular ones include:

- Indianapolis, IN

- Kansas City, MO/KS

- Birmingham, AL

- Memphis, TN

- Atlanta, GA

- Jacksonville, FL

- Columbus, OH

It's important to thoroughly research any city you're interested in to make sure it has strong economic fundamentals and a stable rental market. Networking and building a team is also key to success in real estate investing. You may want to connect with local real estate agents, property managers, and other investors in the cities you're considering. Best of luck to you!

If you are renting out the furnished unit as a business, you may be able to deduct some or all of the costs associated with furnishing the unit as business expenses. These expenses may include the cost of furniture, appliances, linens, and other items needed for the unit. However, you should consult with a tax professional to determine what is deductible and how to properly document your expenses.

It's also worth noting that if you're renting out the unit for less than 15 days per year, you may not be able to deduct any expenses related to the rental, including the cost of furnishings.

Here are some tax credits that may be available for redevelopment projects:

1. Federal Historic Preservation Tax Incentives: Provides a 20% tax credit for the rehabilitation of certified historic structures.

2. Low-Income Housing Tax Credit (LIHTC): Provides a dollar-for-dollar tax credit for investors who finance low-income housing.

3. New Markets Tax Credit (NMTC): Provides a tax credit to investors who invest in businesses or real estate projects located in low-income communities.

4. Brownfields Tax Incentives: Provides tax incentives for the cleanup and redevelopment of contaminated properties.

5. Energy-Efficient Commercial Building Tax Deduction: Provides a tax deduction for commercial building owners who install energy-efficient systems.

6. Renewable Energy Tax Credits: Provides tax credits for investments in renewable energy systems such as solar, wind, and geothermal.

7. Rehabilitation Tax Credit for Historic Buildings: Provides a 20% tax credit for the rehabilitation of certified historic structures.

8. Federal Empowerment Zone Tax Incentives: Provides tax incentives for businesses located in designated empowerment zones.

9. State and Local Tax Credits and Incentives: Many states and localities offer their own tax credits and incentives for redevelopment projects.

It's important to note that the availability of these tax credits and incentives may vary by location and project type, and it's best to consult with a tax professional or attorney to determine eligibility and how to apply for them.

In Texas, the law requires a minimum of 30 days' notice for termination of a month-to-month lease. However, for leases shorter than one month, the notice period can be shorter, as long as it is stated in the lease agreement. So, for example, if you have a 3-month lease, you could specify a 15 or 20-day notice period in the lease agreement. It's important to note that if the lease agreement specifies a notice period that is shorter than the legal minimum, the legal minimum will still apply. It's always a good idea to consult with a local attorney to ensure that your lease agreement complies with all applicable laws and regulations.

Hi Matt,

I'm sorry to hear about your accident, but it's great that you have a solid emergency fund in place. When it comes to buying a car, there are a few factors to consider.

First, while it's true that cars aren't depreciating as quickly right now, new cars still typically lose value faster than used cars. That being said, buying new may be a good option if you plan on keeping the car for a long time and want the peace of mind that comes with a warranty.

However, if you're looking to house hack in the next year, it might be best to save some of your cash for that and buy a used car instead. You can still find a reliable car for $10k or less, and you'll be able to put more of your money towards your real estate goals.

Ultimately, the decision comes down to your personal priorities and goals. If having a new car is important to you and won't hinder your ability to achieve your real estate goals, then financing a new car may be a good option. But if you'd rather put more of your money towards your real estate goals and are okay with buying a used car, then using cash for a $10k car is a good choice.

Hope that helps!

It's great to hear that you have been able to build up your real estate portfolio to 19 doors. However, it's understandable to be concerned about the high cost of your current insurance policy and the potential impact on future property acquisitions.

There are many insurance companies that offer business policy and property insurance, and it's worth shopping around to compare rates and coverage options. Some companies to consider include:

1. State Farm

2. Allstate

3. Liberty Mutual

4. Progressive

5. Farmers

When comparing insurance policies, be sure to look at the coverage limits, deductibles, and exclusions to ensure that you are getting the right coverage for your needs at a fair price. It may also be helpful to work with an insurance broker who can help you navigate the market and find the best policy for your unique situation.

Additionally, it may be worth considering implementing risk management strategies to help reduce the likelihood of property damage or liability claims. This could include conducting regular property inspections, maintaining properties to prevent hazards, and implementing safety protocols for tenants and employees.

Ultimately, the key is to strike a balance between adequate coverage and cost-effectiveness. By exploring your options and working with an experienced insurance professional, you should be able to find a policy that offers the right balance of coverage and affordability for your real estate portfolio.

It's great that you are considering your options carefully before making a decision. Ultimately, the decision on whether to go for a cash-out refinance or term loan refinance will depend on your personal risk tolerance and financial goals.

If you are conservative and want to play it safe, then sticking to Case 3 with positive cash flows would be a good option. This would ensure that you have a steady income stream and can weather any potential recession or economic downturns.

However, if you are comfortable taking on more risk and want to leverage your equity to invest in other properties, then going for a cash-out refinance may be a good option. With this approach, you could use the cash to pay off other debt, make improvements to your properties, or invest in new properties.

Ultimately, the decision will depend on your individual circumstances and financial goals. It may be helpful to speak with a financial advisor or real estate professional to help you evaluate your options and make an informed decision.

It sounds like you have identified a potential opportunity with the property down the street, but it's important to approach the situation carefully and thoughtfully.

Given the homeowner's desire to sell the property but continue living in it until she passes away, a seller financing arrangement may not be the best fit. Instead, you could consider proposing a leaseback agreement, where the homeowner sells you the property but retains the right to live in it for the remainder of her life.

As for financing, you could potentially use the HELOCs on your other properties to secure a loan for the purchase of this property. It may also be worth considering private lending options, such as connecting with local investors or reaching out to a real estate attorney to explore your financing options.

When it comes to structuring the deal, you may want to work with a real estate attorney or experienced real estate agent to ensure that all parties are protected and the agreement is legally sound. This could include outlining the terms of the leaseback agreement, establishing the purchase price and any financing arrangements, and addressing any other considerations related to the property's subdivide potential or future development plans.

Ultimately, the key is to approach the situation with transparency, sensitivity, and a focus on finding a mutually beneficial solution for both you and the homeowner. Good luck with your negotiations!

Congratulations on taking the first step in your real estate career, Travis! It's great to hear that you're excited about your new role as a sales associate with Networth Realty and are enjoying the process of learning and networking in the industry.

As a sales associate, your role will be crucial in connecting investors with distressed properties that have the potential for profit through flipping or renting. It's important to develop strong relationships with both investors and property owners to create a successful pipeline of opportunities.

Make sure to stay up to date on the local real estate market, including trends in pricing and inventory, and continue to build your network of industry professionals. This can include other agents, investors, contractors, and more. You may also want to consider attending local real estate networking events and conferences to expand your connections and knowledge.

Best of luck to you in your new role as a real estate sales associate, and don't hesitate to reach out if you have any questions or need support!

It's true that in a Subject To deal, the investor is taking ownership of a property "subject to" the existing mortgage, without going through the traditional process of getting a new mortgage loan. This can be an advantage because it allows the investor to take over the property quickly and with less paperwork than a traditional mortgage. However, it's important to note that this approach does not necessarily mean that the investor should skip the inspection process.

In fact, it's generally recommended that investors conduct a thorough inspection of the property before taking ownership, even in a Subject To deal. This can help identify any potential issues or repairs that may need to be addressed, and can also give the investor a better understanding of the condition of the property and any necessary repairs or renovations.

One way to get an inspection while using a Subject To approach is to include an inspection contingency clause in the purchase agreement. This would allow the investor to back out of the deal if the inspection reveals any major issues with the property. Additionally, the investor can hire a professional home inspector to conduct the inspection and provide a detailed report on the condition of the property.

It's important to note that while an inspection can be an added expense, it can also save the investor money in the long run by identifying potential issues before they become major problems. Skipping the inspection process in a Subject To deal can be risky, and could lead to costly repairs or even legal issues down the line.

In summary, while Subject To deals can provide some advantages for investors, it's still important to conduct a thorough inspection of the property before taking ownership. By including an inspection contingency clause in the purchase agreement and hiring a professional home inspector, investors can ensure they have a clear understanding of the condition of the property and make informed decisions about their investment.