All Forum Posts by: Jeremiah Purdum

Ryan, thanks for putting this together. I enjoyed hearing your perspective at the Missoula Housing Discussion. I hope to see you and everyone else on the 20th. 

Doing some year end math and I'm looking back across the last few years. On a SFH the second year the cash flow to taxable income on my sch E was .39. It jumped to .81 and .84 the next two years (if I did my quick calculation for this year correctly). What are other people seeing for this. I realize I'm leaving money on the table if I did something wrong and the .39 is more accurate.

Depreciation is the same for all three years. There was some variation in the real estate taxes paid and some minor increase in rent. 

Thanks!

@Willow T. That is awesome. I would love to do a live-in flip but with two young kids I don't think we are that adventurous. I know it would be doable but maybe too far outside our comfort zone. I think I'd love to try it when my kids are older. You and others give me hope. I'm fairly handy so I think I could do most of it as long as the city gives the A-Okay.

@Michael Rutkowski

Thanks for the great information. I need to do some better research on vacancies here in Missoula. Pricing seems all over the map, but I would shoot for a quality unit. Most of the stuff one seeing is a lot of thrift store shopping with very little care for quality and look, but I have not put in the real due diligence I need to convince investors.

Thanks again!

I've always used YNAB for my personal budgeting and when we added a rental I just started a separate budget and track everything using YNAB. Its great for planning expenses going forward and to know how much you have set aside for repairs, vacancy and CapEx. I also teach others to use this program so anyone interested can PM me and we can talk (personal or business). I know its not the powerhouse, that QB is, but for those of us with smaller portfolios its great. The best part is that I know how much I have set aside for future investing when the opportunity arises.

@Tyne Flannigan, there are a few of us in Missoula, it's good to have more people joining bigger pockets. It sounds like most of us on here are new to real estate investing. I'd like to get a meet-up going sometime but hope we can get some more seasoned veterans too. It can't hurt to get together and dialog either way. Let's get something set up soon!

@Michael Rutkowski what are your peak seasons and what are your vacancy rates during peak and off peak? I have one long term rental here in Missoula and I have an acquaintance here who is building on a lot in a hot part of town (for university folk and visitors) and I am trying to convince him to consider vacation rentals for at least one of the units. His concern is vacancy rates during the winter. We won't have the traffic you would without Big Sky Resort maybe. Anyway just wanted your thoughts on the seasonal nature. Obviously it works because you are still doing it here in Montana. 

Thanks for all the great info already!

Welcome to BP Breean! We are in Missoula and just starting on the path of rentals ourselves. I think you are spot on with you patience is key right now. We keep looking at properties, but we haven't seen any houses that make the numbers work for us yet. I'm hoping to set up a meet-up in Missoula sometime. You guys make it down this way at all?

@Anthony Wienke, I'm here in Missoula as well. This sounds like an interesting/awesome project. I know of a great GC I could recommend if you aren't going to GC yourself. PM me of you want some information. 

Do you have all of your financing in place? I might have a HML as well if he is currently in the position of wanting to. Good luck and if you want to get together sometime to have another set of eyes and ears feel free to contact me.

Jeremiah

Hi all, I just wanted to say that I'm in Missoula if anyone makes it down this way and wants to have coffee/beer/Wally&Buck (look in up in Missoula, its delicious). Anyway, we are just getting started in REI. We have one rental(our first home) and are starting to look at how we could add to the portfolio. I have a GC who would go in with me if I can get the financing set up. Good luck to all those attempting to invest here in Montana!