All Forum Posts by: Joe Delgrosso

Just heard back from my tax accountant and I was expecting some good news that we were getting a positive return from owning 6 different rental properties (bought 2 in 2019) but instead he tells me that we're just breaking even. 

The reason being that we make too much from our W2 jobs to claim depreciation. The income we make from the properties is all written off from the expenses we claim, which is great. But I was hoping to get a return. 

Any thoughts on this? Is he missing something? I know I'm probably being vague, but I'm tax illiterate. 

Oh wow. Stories like that make me happy that each of the condos are with different HOAs because I could imagine getting hurt bad if they were all under the same one. 

How do I go about making sure the HOA is solid before buying?

@Matt Castle

That’s a great point about the HOAs, never thought of that. I wonder how common it is.

But yeah, I’m a buy and hold investor. Not selling these properties anytime soon!

I hope everyone loves a good hypothetical worst case scenario like I do!

I was listening to the BP money podcast today and heard another recession story from ‘08. It always makes me wonder - how can my portfolio be affected by the next recession. I think it’s safe - but I’m sure everyone else in 08 did too!

Below is a rough summary of what I got - would love to hear any crazy or not so crazy idea on how bad or good I might have it when the next one hits.

Between the years of 2016-2020 I’ve purchased 6 single family condos in Knoxville, TN. Each one was done with 20% down and 30 year fixed rate.

I currently net $350-$450 per unit each month after all the costs are done. Nothing crazy but it’s been nice cash flow streaming in.

OK...whattayah got?!?

Hey Everyone! So I currently have 5 single family investment properties that perform nicely but I've been dancing with the idea of doing my first BRRRR.

I'm reading the books and the blogs and in the meantime checking out deals to get a boots on the ground exposure to this new world. 

Here's a situation that popped up yesterday that got me stuck...

I viewed a single family house in a good area that I could have bought for $70,000 and it needs at least $35,000 worth of work. $105,000 total in an area where similar houses are going for $140,000. I just purchased a single family rental a few months ago and I'm currently cash poor so I was going to use my $55,000 line of credit towards the this but I don't think the numbers make sense. 

I would need $20,000 from that line of credit to go towards the down payment/closing costs to get the property and then I'd need the remaining $35,000 for the renovation. So now I would have maxed out my HELOC and will have a larger HELOC payment on top of my other expenses for the property. Also, the whole goal behind a HELOC is to be able to pay the balance back fast so you're not paying the interest, but there's no way I'd be able to get even close to that $55,000 back with the cash out refi.

Where am I going wrong and what am I not understanding? Eager to learn from experienced BRRRR folks.

These are all great responses with some great info. Just signed up for the next REIA meeting in February and will put together a proposal packet in have in my back pocket. I've taken pride in going at it alone but I'm realizing in order to scale I need to do this - so thank you!

Over the last three years, I've invested in 5 single family/condo properties that generate an average cash on cash return of 14% in Knoxville, TN. I'm pretty happy with it and try to pat myself on the back for it - but I need to speed this up! This is a baby step in my larger goals. 

I'd love to bring on a passive investor to help move this faster. My thought is - who doesn't want a 14% return for a passive investment? "Fund the deals and we'll go 50/50 on another property portfolio of 5 properties and aim for the same return - the model is proven". 

However, I hate asking for money, but I know this is one of the only options to take my property portfolio to the next level. Any thoughts or stories on how others have approached getting passive investors? 

I know the normal BP responses of Brrrr'ing and other forms of lending - but this is the particular route I'm interested in hearing stories on if you have 'em! 

@Renee Chase

I’m based in the Knoxville area and have been investing in this area for years. It’s a great region! PM me and I’d be happy to share some of my East TN investing stories.

@Brit F.

This is great! I knew there was something like this out there and this is spot on!

@Suny Capezzuto

Thank you for taking the time to offer your experience and advice!