All Forum Posts by: Joshua Ellis

CPA it is! Definitely don't want to get audited or anything of that nature.

Thank you all for your comments

My dad and I are going to be purchasing a rental property soon under the LLC which he owns. What would be the best way for him to distribute my income to me. I want to be legal and also take advantages of the tax benefits if able. I've heard of possibly having him pay me dividends which can be tax deductible for him/ tax free income for me. Looking for ideas. Thanks!

General question for the community as I think I am in somewhat of a unique situation. I live in Wilmington, NC where there has been an enormous increase in the price of homes in the last two years mostly due in part to covid and everyone from NY/NJ discovering how nice the area is. Average price for a 3 bed 2 bath 1300 square foot home is about 300k. There are some surrounding communities about 30 minutes away where you can shave about 50k off of that asking price. I have a good job and about 25k in savings with plenty of free time. I have thought about attempting to house hack a multi unit family property in one of the surrounding areas and being my own property manager/landlord. Would give me a place to live as well because I currently rent an apartment with a roommate for about $950 a month. I like that plan but I may also have an opportunity to purchase a home 7.5 hours away in WV for about 150k. The benefit to that is my Dad lives in the area and already owns about 13 rental properties and would be able to manage that rental property for me. I would need to pay him a fee for property management which would be fine but I would still be living in an apartment not building equity. Thoughts on trying to house hack here vs. investing in a market I think will do well but continuing to rent?

Yearly Income Pre-tax 150k

Debts: Car 600 a month, student loans 715 a month

Additional investments: Roth 500 a Month, 401k 700 a month

Long Distance Real Estate Investing by David Green. One of the founding members of bigger pockets wrote a whole book on this. Investing in a favorable market is a great idea. Best of luck!

Awesome thanks for the info. Will ask about additional fees. If there are no other additional fees and the rate is truly 20% does that sound like a fair percentage? Even if it is do any of you all have any advice on negotiating a lower percentage? 

PM charge as in property management fee? It is 20% that I mentioned.

I am trying to negotiate a better management commission fee for my short term rental. For a newly renovated ocean front condo they are wanting 20%. What would be the best way to negotiate down to 18% or lower?