All Forum Posts by: Jordan Copeland

@Matt M., @Nicole Heasley Beitenman, @David M., and @Bruce Lynn thank you all for helping facilitate this discussion. Some very key points and things to take into consideration moving forward. I appreciate all your feedback.

As most of you have alluded to, I do plan on getting my feet wet as a landlord for this first rental property. I am interested in learning about all the different avenues within this investing opportunity. I feel as house hacking a SFH will provide me all the control, responsibility, and flexibility I need to really get my foot in the door with REI. I look forward to this challenge, and see it as being a fun learning experience that will only better me for my future. I also was not aware that I would no longer qualify for residential loans if I create an LLC and that I will only be stuck with commercial lending. I will reach out to my lender and get his thoughts on this as I will be getting preapproved in 1.5 months.

Matt, addressing your second point, I do plan on consulting with a CPA and looking to hire one out that I can go to and talk to throughout the year. I am a W-2 employee, that is also paying back student loans (got to love college debt..), I also am a remote employee that works at the comfort of my own home (like many American's amidst this pandemic). I know there are some additional tax benefits in these cases. On top of all of this, I am pursuing investment opportunities with real estate (specifically house hacking in my beginning years). I would like to consult with someone regarding potential tax breaks in these above mentioned cases. It appears, @Linda Weygant (not sure why that didn't turn blue) will be a go to resource. Thank you for the mention! 

Bruce, do you have any notable attorneys that you can name drop for me to get into contact with. Don't know if googling "attorneys in my area" will do the trick. When it comes to legal issues and asset protection, I think it would be best to consult with a professional in that business. Thank you for the tip! 

Hope you all are having a great weekend!

@Bill Hampton and @David M. thank you both for your response.

Bill, I will now be looking for someone that specializes in real estate taxation. I am all on board with paying professionals to handle this type of work, and if I am ultimately trying to systemize a business I think these would be good relationships to build earlier on in the process, especially if house hacking (and future house hacks) will make tax returns more difficult. 

David, I will definitely look into those threads you have posted to gain some additional insight and knowledge in the subject matter. I am leaning more on the side of creating an LLC for the asset protection, but also because in the immediate future I will be investing with non-spousal partners. I currently have three partners (not bound by an LLC, simply just starting out, like me) that are looking to invest in Texas, Arizona, and Nevada, while I have a presence in Colorado. Speaking on this first and for my future rental property investments, I am looking to acquire 3-5 SFH's at the 5+ bedroom range and renting by the bedroom (rather than renting out by the unit). If I can find a triplex or fourplex that is within the means of my budget, I will happily secure one of those properties. For my plan, it will be the SFH's for now, to create a presence in the Denver market and beginning my real estate portfolio.

Hello BiggerPockets Forums!

I am beginning to grow my real estate portfolio. Currently in the process of attaining my first rental property in the Denver market. I have some outstanding questions to see if some of these items are worth it in the beginning stages of real estate investing. My two questions are as follows:

1. Should I create an LLC for this first rental property, and future properties?

2. Should I hire out a CPA for these beginning stages, even if it is my first investment opportunity?

To give some insight and context, I am a new graduate engineer, a year and a half out of college. Moving to Denver before June 1st of this year. Already in contact with an agent and lender in the area. Looking to close on this first property anywhere from mid-March to June. I intend on house hacking this property and pushing for the 5+ bed SFH range. I want to live in Denver and call that place "home", and plan to grow a portfolio in this market (and outside as well). Is it worth it to set up an LLC and hire out a CPA for a financial perspective/tax benefits?

Looking for any thoughts or ideas. I want to take off in real estate investing and any additional knowledge early on will help for this long term vision.  

Hello @Prag Patel,

I am a new real estate investor that is about to purchase a property in the Denver market. This will be my first property and I plan to house hack. Would you recommend to run Quickbooks on your own accord? Or would you recommend to hire out an accounting firm like you did? Also, how is this current firm you hired out? 

Any thoughts in this would be helpful.

Thank you,  

@Nick Giulioni and @Stuart Grazier thank you both for pushing how great House Hacking is to start your REI career. I'm sure it's great for any phase of your REI career, but since I'm just starting out, that's where I'll focus!

Stuart, my current plan is to get out to Denver in June 2021 (after my current lease is up). I have already been in contact with a real estate agent and his trust lender in the area. I have been given access to the MLS in the Denver area and continue to get daily listings in the $450k-$500k price point. I have roughly 7 months until I embark on my REI journey in the Denver market. After talking with my agent/lender, I will be looking to get preapproved/making offers on SFH listings around the month of March. Giving me roughly 3 months to find and hopefully close on a property. Since I'm in this "lull" period, I am primarily focused on saving as much as I can for this down payment while analyzing potential listings through the MLS (and other sites like Zillow and Realtor). I'm trying to familiarize myself within the Denver area/market and get more comfortable running my own numbers on these listings. I'm also focused on growing that knowledge base and foundation for REI. I just finished Rich Dad Poor Dad and now I'm reading @Craig Curelop book on The House Hacking Strategy.

I also want to appreciate everyone coming to this post and offering up their two cents. It has been very helpful and learning from individuals that have already been in my shoes. So thank you!

@John Mayer

I appreciate you breaking down those numbers for me. It's very helpful when looking into a home. I was currently estimating anywhere from $750-800 a room, but I believe an underestimate of $700/room would be a good rule of thumb! You have certainly hit a home run on those numbers for a 6 bed rental property. Those numbers are huge! How many bathrooms does this property have? I am always curious to see those metrics as well. Like what are people willing to live with/sacrifice. Of the books and podcasts I've read/listened too, I've seen 2 beds per bath as a good rule of thumb. What would you suggest? Ideally I would like to find a 5+bed/3+bath situation (if possible). 

Side tangent: I was talking to a real estate agent buddy of mine looking in the Indianapolis area. He thought it was bizarre to look at house hacking as a feasible/cash flowing option to REI. I beg to differ after hearing all these various success stories within the Denver market. But his skepticism certainly brings fair points. He assumed that having 5-6 grown adults living under one roof would have some substantial wear and tear on a home over the longevity of its loan. Is that true? Do you see that with your current property?

I really appreciate all your advice/feedback. This has been very helpful for me and grasping ideas/thoughts from other individuals who are benefitting from House Hacking (especially in the Denver market). 

@John Mayer

@John Mayer thank you for the response and added feedback. I certainly agree with the price points of $450k-500k. I was originally looking in the price points from $400k-450k, but I recently got into contact with @Craig Curelop and he recommended that same price point you mentioned. I've started to look into this range for SFH. I would say to piggy back off what you said. I am focused on eliminating my student loan debt as that is one of my larger debts. I have landed a good engineering job that has allowed me to move to our Denver office (as I am currently in the Saint Paul office). I have established a decent credit at the age of 24 and am looking to continue to knock down my debt to improve that score.

If you don't mind me asking. Did you manage to find a 6 bed home near downtown Denver? And if so, what are you currently charging by the room? I am eagerly looking to dive into house hacking and buy my first home around June 2021. So understanding the typical rent prices for renting by the room in Denver could be very helpful to me. 

@Chris Freeburg and @Ben Rhodin thank you for the reply. You both bring up some great thoughts and ideas to the page!

Chris,I plan on looking into SFH with the ability to rent by the room. I am currently 24 years old, and I'm willing to sacrifice some of that privacy early on to help jump start my future into REI. I think management will be a fun and exciting challenge, plus I would think it to be easier to manage under your own roof. It appears that your first property is the hardest to acquire, but after that it has the potential to snowball into something great. I will also have to give James Clear's writing a read, it sounds interesting.

Ben, I couldn't agree more with what you said. There is a lot of different "flavors" to house hacking, which I think makes it the most exciting. I am currently looking to rent by the room in that 4-5 people range. This is the avenue and track I want to pursue by making those sacrifices so that vision of financial freedom becomes more of a reality.

You two have a great Thanksgiving!  

@Linda Weygant thank you for your additional insight and I completely agree with your comments. Also, thank you for tagging Craig (I'm still getting used to the forums)! My plans are to really focus on getting into this first rental property when I get out to Denver. I am hopeful that this first rental property will jump start my career in REI. I just started on this REI journey, and I am determined to make this into a lifestyle choice by continuing to grow my real estate portfolio in hopes of achieving financial freedom at an early age.

Hello BiggerPockets Forums,

This is my very first post with BP, but I am ready to reach out and learn about what REI has to offer. To give some context of my plan/vision, I will be moving out to Denver, CO in the Summer of 2021. I am looking to purchase my first home, but I am a complete newbie when it comes to REI. I am currently focusing on saving up at least 3.5% down for this first property. I plan on house hacking this rental property (and live out of it for at least a year).

I listened to @Craig Curelop (guess I wasn't able to tag him) BiggerPockets Episode 252 about House Hacking and was immediately hooked. I intend to buy his book on "The House Hacking Strategy".  I am really intrigued about this concept and thought it would be a perfect fit for my situation as I move into the Denver Market. I am currently looking at properties that I can maximize this house hacking concept and either eliminate my rental/mortgage expense entirely and/or produce some sort of positive cashflow. 

I am open to any ideas or further thoughts/comments to help facilitate a discussion. I will happily include a deeper background of myself if warranted as I am trying to make the right connections when I get out into this vastly growing market. As I previously stated, I am not able to get out into the Denver market until my lease is up with my current living situation (ending in June 2021). After listening to @Craig Curelop's BiggerPockets Podcast, the two things to get started in House Hacking is to search for lenders and real estate agents in that area, and that is the next thing on my list.