All Forum Posts by: Ricardo R.

Hey Robin,

Good question — this one comes up a lot. For me, 24 hours is the “soft window,” not the hard rule. If a tenant’s solid and they’ve already gone through screening, I’ll usually give them 48 hours max to sign and pay the deposit before I start showing again.

Here’s why: people get busy, they second-guess, and sometimes they’re waiting on paycheck timing or spouse input. But real tenants who are serious don’t need a week — if they want the place, they’ll jump on it.

If it’s been 24 hours and they haven’t signed, I’d send a polite follow-up like:

That usually gets a quick yes/no. If no response by the 48-hour mark, move on — don’t let your vacancy drag because someone’s indecisive; Robin I really hot this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you.

Hey Benjamin,

Totally get where you’re at — you’ve done all the homework, and now it’s that “how do I actually start” moment that trips up almost everyone. Here’s the thing: being a high-earning W2 puts you in a great position long-term, but yeah, limited capital makes the first deal tricky.

1. High LTV isn’t automatically bad — but it limits flexibility.
Getting into something at 85–90% LTV can work if you’re buying in a stable, cash-flowing market and you’ve got strong income to cover bumps. The problem isn’t just the rate or payment — it’s the lack of buffer. You’ll feel squeezed by maintenance, vacancies, and turns if you don’t have extra reserves. High leverage amplifies everything — both good and bad.

2. With low capital, lean toward “forced equity” strategies.
Look for house hacking, BRRRR-lite, or small value-add deals instead of turnkey properties. Even one you live in for a year (duplex, 3- or 4-plex, etc.) can get you FHA/VA/conventional financing with only 3.5–5% down. You'll learn the ropes, build equity faster, and still get leverage — just with training wheels on.

3. Out-of-state investing is doable, but don’t skip the local reps.
Managing long-distance is hard when you haven’t owned rentals before. If you can, buy your first one close enough to drive to — even if it’s smaller. You’ll make a few rookie mistakes cheaper that way before scaling out of state.

4. Don’t rush — the goal is staying in the game.
Waiting 6–12 months to stack more cash and line up a cleaner 20–25% down payment isn’t “wasting time.” It’s setting up a safer launch pad. Use that time to network with lenders, agents, and PMs in your target markets.

My Advice: you’re in the best position possible except for patience. Don’t force a deal just to “start.” Either house hack, partner up, or keep saving — the right first deal will teach you way more than a forced one ever could; Benjamin I really hope this helps you, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist, thank you. 

Hey Kobe,

Good question — this is one of the biggest hang-ups for anyone starting to look at land in the PNW. Building costs swing wildly depending on where you are and how custom the build is, but here’s a quick reality check from what I’ve seen lately:

• Basic spec or builder-grade new construction: around $225–$275 per square foot.

• Mid-range custom or semi-custom: more like $300–$375 per foot.

• High-end custom homes (especially with slope, trees, or tight access) can hit $400–$500+ per foot real fast.

A lot of folks forget how much the site adds — clearing, grading, utilities, septic, driveway… those things alone can tack on $50–$100k before you even pour a slab.

As for permitting, brace yourself. It’s not quick. In Snohomish County and surrounding cities, you’re usually looking at 3–6 months minimum if your plans are clean, but closer to 6–9 months if the lot isn’t totally straightforward (wetlands, trees, slope, etc.). Fees vary, but expect a few grand between permit, plan review, impact fees, and utilities.

My advice — do a pre-application meeting with the city or county before you close on land. They’ll tell you what hoops to expect, which can save you months of surprises.

If you can build the crawl space/foundation work yourself and you’ve got good subs, you’ve got a leg up — labor costs are what’s killing most builds out here right now; Kobe I hope this helps you a bit, I sent you DM on BP... it's one of the reason why I do this, I hope you can assist, thank you. 

Hey Jacob,

You're clearly thinking like a BRRRR investor — rinse and repeat — but you're right to pause and look at that cash flow margin before pulling the trigger. Let's break it down:

1. The numbers are tight.
If you’re pulling $1,900 in rent on a new $1,800/month payment, that’s razor-thin — especially with today’s taxes, insurance, and maintenance costs climbing. You’d basically be betting that appreciation and rent growth make up for low or break-even cash flow early on. That can work, but it’s not ideal if your reserves are thin.

2. Your reserves are the real limiter here.
$5K isn’t much cushion — one furnace, AC, or vacancy can wipe that out fast. Before you take on another property, I’d want to see at least 3–6 months of total expenses per property saved. You’ll sleep way better, and it keeps you from being forced into bad short-term decisions.

3. Interest rates and timing.
Yes, 6.5% is better than your current 7.4%, but not by enough to transform your numbers. If you can refinance the first property and pull cash while dropping your rate and payment, that’s worth exploring. But if the new deal only breaks even after debt service, I’d slow down.

4. BRRRR still works — but only when the “R” actually returns your capital.
If the refinance on the first house frees up real equity and still cash flows after the new rate, great. But if you’re just layering on another high-payment loan to chase a slim margin, you’re growing exposure faster than your safety net.

My Advice: the deal itself isn’t terrible, but your reserves are the choke point. Shore those up first — even $10–15K more gives you breathing room. Once you’ve got that buffer, rinse and repeat will feel a lot less risky; Jacob I really hope this helps you, I sent you DM on BP, its one of the reasons I do this, I hope you can assist.

Hey Rick,

Your friend’s in a great position — high income, zero debt, and some solid real estate assets to work with. The challenge now is turning that W2-heavy profile into something that spins off tax-sheltered income. A few ideas to think through before the year ends and into 2026:

1. W2 income = no write-offs.
That’s the root problem. When all your income comes from a paycheck, the IRS doesn’t give you much room to maneuver. The best way to ease the burden is to create or buy something that generates business or passive income — because business owners and investors get to deduct everything it takes to earn that income.

2. The small business buildout could help a lot.
That $100k going into the wife’s commercial building? If it’s tied to an active business, most of that can be depreciated or expensed — especially under Section 179 or bonus depreciation. Get a good CPA to classify those improvements correctly. Every dollar you can expense through the business helps offset that 2025 income.

3. The lake house conversion idea has potential — but tread carefully.
If they carve out 2/3 of the property into a short-term rental, they could qualify for STR bonus depreciation if managed as an active business (not just passive). That means cost-segregating the property, depreciating furniture, appliances, etc., and writing off a big chunk upfront. The catch: they need to materially participate (track hours, manage bookings, etc.) and the property has to be in service by year-end for 2025 benefits.

4. The adjacent lake lot:
Could be a sleeper move. If they're open to development or even selling it under an installment sale, they can control when gains hit their tax return. Alternatively, contributing it into an LLC and partnering with a developer could defer or spread income while creating write-offs from early expenses.

5. Other moves before year-end:

• Max out 401k/IRA/HSA contributions. Basic but still effective.

• Consider a Solo 401k or SEP if either spouse has side income.

• Fund depreciation-heavy investments (real estate, equipment, even billboards like Kiyosaki mentioned). Anything with upfront write-offs works better than passive index investing at their bracket.

• Talk to a CPA about cost segregation on any rental or business-use property. That’s where the big tax savings are hiding.

6. 2026 and beyond:
Once income drops to $600k, it’s the perfect time to get a couple of rentals or a small commercial property into service. The depreciation will hit hard against that W2 income and smooth the transition into semi-retirement.

My Advice: if they do nothing, they’ll keep getting hammered because W2 income offers zero flexibility. If they strategically activate the business, short-term rental, or a depreciation-heavy investment before year-end, they can write off tens (maybe hundreds) of thousands legitimately. But they’ll need a proactive CPA who understands real estate — not a typical “file and forget” accountant; Rick I really hope this helps you help your friend, I sent you DM on BP, it's one of the reasons I do this, I hope you can assist. 

Hey David,

Congrats — that’s an incredible position to be in. You’re smart to slow down and think through the 1031 and leverage strategy before signing anything. Here’s how this usually plays out:

1. 1031 into NNN properties is totally doable.
You’ll use the 1031 proceeds to buy the replacement assets (say a couple of triple-net leased buildings). That keeps your capital gains deferred. The big key is identifying within 45 days and closing within 180 days of the sale — so start lining up those NNN options early.

2. Yes, you can typically finance against NNN assets — but it’s about the lease, not just the building.
Lenders underwrite both the tenant's credit quality and the lease terms. A strong national tenant with a long-term lease (e.g., Dollar General, Starbucks, Walgreens) can absolutely support a loan at 70–75% LTV, sometimes even higher.
If it’s a mom-and-pop tenant or a short lease term, expect more conservative leverage (maybe 50–60%).

3. DSCR loans are possible but slightly different for NNN.
These loans look at net income vs. debt service — but NNN leases have almost zero landlord expenses, so the DSCR usually pencils easily if the rent is solid. The lender still focuses heavily on tenant credit and remaining lease term (they don’t want to see a 2-year lease on a 20-year loan).

4. Property value vs. lease value:
You nailed it — some lenders will lean on property appraised value while others (especially commercial lenders) base it on the income approach. The stronger and longer your lease, the higher that “income-based” valuation climbs. A short or shaky lease pushes the valuation back down toward just the building’s intrinsic worth.

My advice:
Yes, you can pull equity out post-1031 via financing — just make sure the lease is long-term and with a solid tenant. Talk with a few lenders who specialize in NNN or 1031-backed commercial loans before you close; they’ll tell you exactly how much leverage that income stream supports; David, I really hope this helsp you a bit, I sent you a DM on BP, it's one of the reasons why i do this, I hope you can assist. 

Hey Benjamin,

Welcome to landlording — this is one of those “you can’t make this stuff up” moments every new owner eventually runs into. You’re handling it the right way by looking for clean documentation before re-renting.

Here’s how I’d approach it:

1. You don’t need to evict if the unit is clearly surrendered.
If the family removed all belongings, returned the keys, and the tenant is clearly not coming back, that’s legally considered abandonment/surrender in most states. The early termination form is nice for the file, but the key return is often enough proof the tenancy ended voluntarily. Take photos of the empty unit, keep copies of texts/emails from the family, and document everything in case there’s ever a dispute later.

2. Stop chasing the jail bureaucracy.
Once they’ve surrendered the keys and the space, there’s no need to go through the full eviction process — especially if the tenant isn’t contesting it. The jail isn’t obligated to process private paperwork, and the courts usually only step in if you’re trying to force possession (which you already have).

3. File your own “mutual termination memo” for your records.
Write a short statement for your file summarizing:

• Date keys were returned

• Confirmation that all property was removed

• That the tenant is incarcerated and not returning

• That the unit has been re-taken with no objection

Have both you and your wife sign and date it. Keep it with the lease file.

4. Re-rent carefully.
Once it’s cleaned up, you’re clear to re-list. Just make sure to document everything (photos of condition, communication logs, etc.) so you can show you didn’t illegally remove belongings or rush entry.

My advice: you’re not dealing with a holdover or an eviction fight here — you’re dealing with a voluntary surrender. Don’t overcomplicate it with the courts if you already have possession and proof of abandonment; Benjamin I really hope this helps you a bit, I sent you DM on BP and hope you can assist, its one of the reason I do this, thanky you.

Hey Joe,

Congrats on leveling up — going from SFHs to an 8-unit is a big step, and your questions are the right ones to be asking. Let’s break it down:

1. The basics — what you’ve got here:

• Purchase: $700k

• Cap rate (current): 6.5%

• Renovations: $200k

• Pro forma NOI: ~$45k/year ($3,750/month)

If you hit that NOI after rehab, your stabilized value at a 6.5% cap would be about $692k ($45k ÷ 0.065) — which means you'd be all-in for $900k ($700k + $200k) on something worth $692k today. You’d need rents or market cap rates to improve significantly to force value and make that spread work.

2. Where your money gets stuck:
Right now, the deal eats your BRRR-style velocity. In single-family, you're used to forcing equity and refi'ing out. Here, you're front-loading $200k into CapEx and not creating much "instant equity." Until NOI rises or cap rates compress, you're parking capital more than recycling it.

3. What to look at deeper:

• Post-reno rents: Are you confident that $3,750 NOI is realistic and sustainable? Run rent comps hard.

• Exit cap rate: If you can hit, say, a 7% cap with $60k NOI (which would mean serious rent growth), your building could be worth ~$860k — still tight, but better.

• Financing: Is the loan interest-only during renovation? Can you get bridge financing to carry you through the upgrade period? The hold costs could eat your margins if you’re using standard commercial terms.

4. Compare to your SFH model:
If your BRRRs are pulling 30%+ returns, this building will feel slow and heavy in comparison. That's not necessarily bad — multifamily shines in scale and stability, not speed. Just don't expect BRRR velocity here.

My advice: this doesn’t look like a home-run “value add” deal unless you can either buy closer to $600k or push rents significantly after rehab. Otherwise, your money’s probably tied up for a while before it spins back out; Joe I really hope this helps you out, I sent you DM on BP and hope you can assist, it's one of the reasons I do this, thank you. 

Hey Maya,

Welcome to landlording — this is one of those “baptism by fire” moments that every owner gets eventually. Here’s how I’d handle it:

1. Safety first, liability second.
Since there was an injury (even minor), treat it seriously and document everything. Ask the tenant to confirm they’re okay and that they’ve received any medical care needed. Keep all communication in writing and save photos/videos of the damage. Don’t admit fault — just focus on getting it safe and fixed.

2. Get the hazard removed immediately.
Yes — remove the glass door completely and install a simple shower rod and curtain. That’s the safest short-term fix. You can always reinstall a new door later once you’ve had a contractor inspect the frame and rollers. A clean, functioning curtain setup is fine for habitability and avoids any more risk.

3. Who pays for it?
Realistically, this falls on the landlord. Even though you didn’t install the door or cause the issue, the property (and everything in it) became your responsibility the day you closed. Unless you can prove the tenant damaged it intentionally (which doesn’t sound like the case), you’ll be expected to repair or replace it.

4. Insurance angle.
Let your landlord insurance carrier know about the incident — not to open a claim yet, but to put it on record. If the tenant later decides to pursue medical reimbursement, you want that documented. Most policies have liability coverage for exactly this type of situation.

5. Moving forward.
Have your contractor check the other units for similar potential issues (loose fixtures, sticking doors, cracked glass, etc.). It’s an easy way to avoid a repeat down the road.

Bottom line: remove the hazard, make it safe immediately, document everything, and own the repair. That’s the “safest and easiest” route both legally and practically; Maya I really hope this helps you a bit and let you see a wider angle, I sent you DM on BP and hope you can assist as well. 

Hey Tim,

Congrats on the inheritance — that’s a great opportunity, even if it comes with some big decisions. The first step is figuring out what makes more sense financially and personally:

1. Fix & Rent:

If the house is in decent shape and rents well in Bellville, keeping it as a rental can give you steady income and long-term appreciation. Check local rent comps — if you can get a 1% monthly rent-to-value ratio (for example, $2,000/month rent on a $200k home) or at least solid positive cash flow after taxes, insurance, and maintenance, renting might be worth it. You’ll also get depreciation and other landlord tax benefits.

2. Sell:

If the house needs heavy work, or you’d rather have the cash and less hassle, selling may be cleaner. With values up in many markets, even a light cosmetic refresh (paint, flooring, curb appeal) can help you get top dollar without a full renovation.

3. Timeline & agent:

Since you’re already thinking 1–2 months out, it’s smart to get a local agent to walk the property now. A good agent can tell you (1) what you’d realistically net if you sell as-is vs. after light updates, and (2) what rental demand looks like if you decide to hold.

Bottom line: if the numbers don’t scream “keeper,” don’t force it. Sometimes the best first investment move is selling right, learning the process, and rolling that capital into something with clearer returns later; I really hope this helps you out, I sent you a DM on BP and hope you can assist too.