All Forum Posts by: Justin Sheley

I have been trying to educate myself on taxes recently because it is part of the real estate equation that I still struggle with when I am analyzing deals. I am currently buying in Rockford, IL and there are two four families that I am interested in. The current taxes are $5667 on each properties, but that was based on a tax assessment of $40,475. If I'm understanding this right that tax amount is based on a price of a little over $120,000. The buildings are currently listed as foreclosures @ $61,000. If I were to purchase them at that price the tax amount should change correct? I'm trying to understand if the tax bill is based off the purchase price when I buy the property or the assessed value of the property.

Hallie and I plan to be there.

Welcome Eric, I have found the podcasts on BP to be such a huge help as a new investor. Rockford is definitely an interesting market to work in, but there are defiantly still areas to invest in.

Thank you for your feedback guys. I just want to clarify that I am in no way against having a partnership. I understand the benefits of working in joint strength with other individuals in order to achieve more than I could alone. Your answers seem spot on and make total sense. More specifically, let me ask it this way. Is there any drawback to taking on partners on deals too soon, especially when I am still eligible for conventional financing?

As a newbie real estate investor I was hoping you guys could shed some light of the benefits of having a partner when purchasing properties. I have been faithfully listening to the podcasts and I know @Brandon Turner is a big fan of partnerships, however I have one basic concern.

- With both my wife and I being small private school teachers I would consider myself a "hustler" to get the properties I own. We really have to pinch every spare dollar in order to make this dream a reality, and we are really just starting out as we close in two weeks on our second "house hacked" multifamily. I am very thankful for a great experienced mentor here in Rockford who has helped me created a strategy for the area, but I am struggling to understand if I should be looking to use a partner this early on in my investment portfolio. If I am able to purchase a SFR for 40k that cash flows $400 a month with a down payment of $8,000 why should I bring in a 50/50 partner so that each of our down payment is only $4,000 but my monthly cash flow is $200. I don't ask this out of a spirit of pride as if I couldn't use a partner, but with the limited number of conventional loans I can use, is it really wise to split cash flow on this deals? Or is it better to use partnerships when I get to the point of needing creative financing to get a deal.

I appreciate any feedback and advice you have to give. After I close on our multi-family on the 28th I am hoping to buy two single family properties in Rockford, IL this summer. I just want to make sure I am understanding all my options and making the best decisions since I am just getting into the game.

Thank You,

Justin Sheley

http://www.valoans.com/eligibility/co-signers

@David L., I'm assuming you've probably been to the above site. Your absolutely right about the non - spouse/ non - eligible participant. I never knew that about the 12.5% until today.

David,

I'm not sure about leaving the home empty in order to avoid moving. I know when I used a VA loan to buy my first multifamily I had to sign an agreement that I intended to owner occupy. So it would seem to me that "owner occupy" would mean he has to actually reside there. However, I would suggest just asking your lender if they would still write the loan if the home is empty for that year.

You mentioned that you would have to put down 12.5%, why do you say that? The main benefit of the VA loan is that you are able to make no down payment because the loan is insured by the government. I know with my VA loan it was a joint loan with my wife, so I would think that someone else could be on the loan. I'll have to look into that a little more though.

Thank you for the welcome to the website guys. I'm very excited to be involved in this online community, and especially hear from you that are local. I may have a chance to meet some of you at the local meet-ups. Also, if any of you need any boots on the ground help I would love to be an asset to anyone just to gain experience. @Craig Wilcox do you know when they next investor meet-up in Rockford is?

@Emmitt Adams, this is not meant to discourage you in any way, but I just was reading through this forum post by a very experienced investor who works in Ohio and I thought it would be an interesting read especially since it looks like your in CA and are investing long distance. This 2 family may be a great deal for you and cash flow nicely. And then hopefully you can refinance it to get your cash back out and buy another property, but I would strongly suggest you connect with someone in Ohio about the property and location if you haven't done so already.

https://www.biggerpockets.com/forums/311/topics/16...

@Cassie Sherie, your correct anything larger than a 4 family would be considered commercial and would require a different lending process.