All Forum Posts by: Account Closed

If you think student loan debt has tax advantages, wait until you see the tax advantages of owning rental property!

Considering your 7-10 year goal, I would definitely invest now and consolidate to lock in those low student loan rates. 

I'm interested in the demographic trends that lead you to believe a recession is impending. The economy is cyclical, but I'm not smart enough to predict the ebbs and flows. But I'd love to read more about it. Please let me know if you have any reading recommendations.

What's your income level? I'm not asking for the exact number like Dave Ramsey does, but I think if you make enough to put a down payment on a cash flowing property in KC, then that cash flow will pay your student loan bill. Now you can throw extra money at the student debt. But since I brought up Dave Ramsey, there's also the sleep at night factor. If your student loan debt is causing you to stress, then I'd recommend setting up a budget and pay off the debt as fast as possible. Once your mind is at ease, then save for that down payment.

Since I'm a heavy sleeper, I'd choose the first route. I would love to hear other perspectives as well!

I agree with the last 2 posts. Professional advice is expensive. Drs., lawyers, title companies, etc. However, not having the information to make an informed decision can be even more expensive. Personally, I would go the route of the last 2 posters (figure out title, get legal advice on your options). Many attorneys will give you a free consult so you might not even have to pay to better understand your options. But don't give up because the situation is complicated. Your girlfriend is lucky to have someone like you looking out for her!

Flat rate charged for 2 units w/n the city. That number is literally my bill so is not an estimate. It will increase every July 1 for a few years, per a recently passed ordinance. 

It's great that you're starting your REI career with a solid understanding of how to actually calculate whether a deal is good or not. Keep that up!

I would second @Rahul Bhatt's comment because the risk/reward for paying LLCs fees (and CPA fees when doing taxes) with only 1 investment property. Insurance at this point is likely enough.

Also, as usual @Derek Jones is spot on re: water/sewer/garbage. Tenants do not normally pay this and it runs about $280 for a duplex in the City of Sacramento (versus unincorporated parts of the County of Sacramento).

Personally, I would stay away from North Sacramento/Natomas, parts of Central to South Oak Park, and South Sacramento. Otherwise, Sacramento is very neighborhood specific. Don't be afraid to look at Lincoln and other similar areas "just" outside of Sacramento. Good luck on your search!

It's tough to see appreciation in small multis, even in good areas. One reason, there are less comps because there are likely not many duplexes in that area to compare   (most duplexes sit on a corner in Sacramento city due to zoning restrictions). Secondly, and partly because of reason number one,  there aren't many multi sales in the good neighborhoods to compare, either.  Personally,  I would always buy in the better neighborhood because you can charge more for rent and have a larger tenant base to choose from. It's been my experience, if you have a quality product for rent, renters will be salivating to get in. There's not much good inventory for highly qualified renters out here. With multis, it's more of a cash flow, debt paydown, and tax play versus an appreciation play. Feel free to PM me if you ever want to talk specifics about Sacramento. 

Can't wait! 

What a great position to be in. So congrats @Chris Wilson on having options!

To answer your question though, we really need to know what your goals are. Do you want to scale up and own a lot of income properties? Do you want to stay local re: peace of mind? Are you able to hold on to the condo for another 10 years? Do you even want to?

I think over the long term, Sacramento will see great appreciation as it relates to the price point where you purchased your condo. As someone who owns in Sacramento and in the Midwest (for cash flow), I would keep the Sacramento place and save up to buy in the Midwest because of its low dollar entry point. However, if you're trying to scale, I think @Derek Jones is correct, sell and multiply! Either way, you can't lose.

@Ali Boone do you have any experience working with Bridge Management? They are a turnkey provider in the KC area.