All Forum Posts by: Account Closed

I think it's important to have a good accountant or CPA on your team. You definitely need to learn the basics and it seems as you are. But as others have brought up in this thread, there are a ton of nuances in the tax code. As Dave Ramsey would say, find a tax professional with the heart of a teacher to explain why or how he or she is setting up your tax planning. But you're on to a great start by asking the right questions. 

It will be on the 3rd floor!

@Al Williamson Where is the new location? 

What's your location/budget for a duplex? Feel free to PM me.

"Putting myself in your shoes, I would not be a fan of tenants using my assets to their economic benefit." - Middle men are as American as apple pie. As long as you're tenant is paying rent, the only "harm" is that your tenant is doing it behind your back. To me, that is the real issue here.

Personally, I would call the tenant and let them know that I know what they are doing and, assuming I have a subtenant prohibition in my lease, that they are violating the lease. Then I'd either have them sign a new lease that allows them to continue the business and shift the maintenance and management burden onto them at no cost to me. Secondly, I would fire my property management company for not telling me or dealing with the situation. What are you paying them for? You might actually wind up increasing your net return by eliminating the middle man who is doing the least to maximize the value of your property.

You have to find out what loan amount you qualify for either a 1.) owner-occupied FHA or an 2.) investor loan. Otherwise your analysis ends there. Real estate investors can't shop without a budget.

I would second @Lee Ripma re: KC, but encourage you to visit your target markets first. I visited KC last year to vet a property and loved the city. I haven't found an investment there....yet. But it is a great market. I would have never known unless I spent some time there.

Personally, if I could qualify for a loan amount high enough to house hack in SD, I would do that as my first deal for 2 reasons. First, you gain land-lording experience that you will need if you move to out of state investments. You'll be able to ask the right questions to determine whether your out of state landlord is give you the okie-doke. Secondly, San Diego will always be a place people want to be. PMI is always there with a FHA loan. That is part of the deal. However, if you can pay the same (out of your own pocket) for your SD mortgage as you are paying in rent right now, that would be a success to me. The tax savings at the end of the year will make you feel better about that PMI. And in 2-3 years, you'll have more options with the property.

Glad you've decided to begin your journey. BP is a great place to learn and grow. Good luck!

Sacramento is very competitive, but there are still great investments to be had when you are patient and are not afraid to get turned down. A good house hacking multi-family is going to start around $350k. Anything cheaper is probably in an area that I would not want to be in long-term. 

I just helped a client find a a 3/1.5 cosmetic fixer for $60k less than the home across the street is listed for! 

I've used Fast Action Pest Control numerous times. 

You can definitely reach your monetary goal with SFRs, but you stated you wanted, "passive income coming in from real estate investing without having to dedicate a lot of my time to managing the properties... ." SFRs will require you to dedicate more time even if you outsource the PM responsibilities. Hence, the multi-family advice. 

I co-sign @Ariel Smith's comment regarding Airdna.co. You have to pay for their analysis, however, it is a great tool. @Al Williamson teaches a class on this stuff that would be very helpful to you.