All Forum Posts by: Guy Yoes

There are no beds, or TV  I use the computer to research properties, check email and enter details in my excel that has property information  I may play some free cell from tome to time   

I wish I had found BP before I bought my first property. The wealth of knowledge on here would have saved me time and money. I just didn't know what I didn't know.

Not knowing the condition of the property and your income, I would give things some time. Put back some cash in case you have a major repair. If the heater goes out, you may lose renters if you can't fix it quickly or one of the units becomes vacant. Don't bite off too much too soon. Have you analyzed your costs for ins./taxes and expenses? As an RE pro, income can be flexible. You're off to a good start. 

Good luck. 

So, you have 96K in loans and the property is worth 230K. It brings in $1300.00 a month. Looks like a good deal to me. I assume you have no problem making the payments. You didn't say what your monthly payments and net were. If you sold them now you could not replace them and make what you currently bring in. Even if the market were to drop some, you are still golden on these two. 

My 2 cents: unless you need the money, pay down the debt and if/when prices drop, refi and pick up the third house with enough equity to keep the cash flowing. If you need the cash, keep renting them and take the tax breaks.

Others may say to go ahead and refi and get the third, but that may tap you out more.

Good Luck!

My daily schedule is bed at 9:00, 2-3 hours of reading and writing and up at 5:00. My schedule is so consistent that I haven't set my alarm clock in 15 years. 

So I used a HELOC to fund RE investment in my RE LLC. I make payments from my business account to the HELOC. My understanding is I can deduct the interest the business pays on the loan. Am I wrong in this assumption?

We have 3 properties in an LLC and use a room in our house for all our REI issues. We use our computer to list, advertise and contact our renters. We use a file cabinet for hard copies and have a dedicated phone line just for faxes. I had been told that I cannot deduct mileage from my home to my rentals (I drive by weekly) as it was not from my place of business. I appreciate any comments or suggestions.

@Colte Utley

Thanks I was looking for a good RE CPA. I called Davison and will schedule a sit down with them.

@Michael Burks

Why MF? Do you have any experience with Mult Family housing? Do you live in an apt and think it's all that?

If you have 25K to spend on a weekend scam job, that must mean you have 5-10 times that amount to invest sitting in the bank.   Find someone in DFW that owns and manages MFs and pay him/her 25K to let you work for them.

You don't need a mentor, you need to be an apprentice. Go to RE clubs and get to know people who are grinding it out in RE. NOT the big fish, but the husband/ wife or 3 brothers who are spending evenings and weekends cleaning out rentals, painting, driving to pick up rent and screening applicants. Find them and then offer to help them out. Spend a day shampooing a soiled carpet and scrubbing out a stove or shower.  Don't ask for pay because what you will learn is worth more than money. Then go buy a duplex and house hack it for two years. That's how most of us started in RE. We didn't have money to start out buying 20 door MFs

You said you "have the passion and funds to invest in multi-family". But passion and money won't buy knowledge. that comes from experience over time.  I have the passion and funds to ride a motorcycle, but I can't ride a bicycle. I guess I can buy a Harley and pay someone to teach me to ride it, or I can buy a decent bike at a yard sale learn to ride that first.  I would rather fall off the bike a few times than a new Harley.

If you truly have a passion, then you should understand that REI is not about more, bigger and better. It is the journey, with friends and family, sweat equity, late nights and long weekends. Sacrificing going out to eat, or buying used cars so you make the mortgage each month. Learning from your mistakes and grow your business.

I wish you the best if you decide you really want to live the real estate life.

My understanding is ANY 1031 must go through a third party. I'm sure other will confirm this.