All Forum Posts by: Joshua Sun

Wondering if find and talking to a CPA in the process of getting a first investment would be a good idea. I assume they will let you know the best way to send, receive money in a business account and other things to consider. Consultation is free in most cases, so figured it might make sense to do so, and go back to them in a year to do taxes with them. 

Looking to buying a first investment property, and we were curious if it makes more sense to put in more money down for a lower interest rate or save that extra money to jump start the next investment property purchase. 

The property will cash flow either way. 

Hi,

My girlfriend and I are looking to purchase a first investment property soon, and we were wondering if there was a preferred bank to open up a business account. Or maybe it doesn't matter, as long as we have a place to send money for purchases, and to get money from rental income etc. I assume it is mainly for CPA / Tax purposes.

Let me know if it is that simple, or if there are any pro tips we should know about? 

My girlfriend and I have been saving to buy our first investment property. 

Should we talk to a bank to open up a business account? I hear it will be easier for CPA / Taxes later on if all expense from purchase, rehabs, repairs, etc are all under one bank account? 

I guess it will be a good place to collect rent as well. 

If anyone has any other advice considering where the money enters and exits, please let me know. 

Thanks!

@Kevin Sobilo Thanks for the advice! 

@Aaron Rouser & @Grace Wang thanks for the welcome and advice! 

Hi,

I was wondering what you guys have found to be an effective way to store your money as you are saving for investment properties. 

Do you put in a general bank savings account?

Do you put it in an index fund on Vanguard, Fidelity, or any other investing platform?

Any other ways?

Thanks!

@Dustin Maxson Thanks for the info. Congrats on starting the process and good luck on finishing up the renovation and the inevitable renting and refinancing portion of it. 

@Joe Villeneuve Will do! Thank you!

@Joe Villeneuve Thanks for the insight!

From what I've read and heard, the biggest advantage of BRRRR is creating forced appreciation for when you get it appraised, to pull out more money then you put in. And depending on the grace period before a lender allows you to refinance out, you can repeat the process every 3 to 6 months. So if you did go 100k all in on a buy, and rehab, you should be able to bring the value of the distressed property for over 100k, therefore allowing you to pull out all of your money out, if not more.

In David Greene's book BRRRR, he gave an example of a person who is buying a SFH home with conventional loans every year for 10 years versus someone who waited till the 2nd year to save and BRRRR and was buying multiple homes a year every year for 10 years. The difference between 10 SFHs versus 20 or 30 in 10 years.

I also read in John Schuab's book, Building Wealth One House at a Time, he says that it is as easy as buying a SFH every year for 10 percent below market value, for 10 percent down, for 10 years. Simple as that.

Just wanted to pick your brain and others. I know some people love BRRRR and others don't believe in it. I definitely want to absorb the pros and cons before starting a strategy.

@Joe Villeneuve I guess the question is between the BRRRR strategy or buying a SFH that needs minimal work as a first time investor.

Example 1 - Save up 100k. Buy a distressed property (SFH) for 50k, then spend 50k rehabbing it, renting it, then refinancing it.

Example 2 - Save up 50k and use that as down on SFH along with light repairs.

Hypothetical numbers, obviously.