All Forum Posts by: Anthony Gayden

@Account Closed

While I respect your opinion, I disagree with it. 

I don't want to not make any cash flow (or greatly reduced cash flow) for 15 years so I can have a "paid off" property. That may work for you, but not for me.

Everything I own is on a 30 year mortgage and I get maximum cash flow. That cash flow greatly increases my annual income. I'm all about the cash flow and I do not believe in paying down mortgages for some sort of safety net. My safety net is my income and cash flow from real estate. It is what pays those mortgages.

I bought a similar home recently and found that the Kilz as well as ripping out the carpet and flooring eliminated 95% of the problem. My guess is your property is far worse than mine. The next thing I would do is get the ducts cleaned out. They are probably coated in ash.

Wesam Saghir Using your father's money to invest sounds like it is more a burden than it is worth. As others have said, I strongly suggest you step out on your own. Find other real estate mentors aside from your father. There are a lot of ways to invest in RE, and it may benefit you to learn more about them. I think one of the greatest gifts many of us received was the fact that we had to learn a lot about investing on our own and start with little or nothing.

@Powell Chee

Take the money and continue to invest in real estate. 

Don't let anyone fool you, $20,000/yr is a lot of money. Anyone saying it isn't must have been born rich. 

Originally posted by @Ali Javid:

I try to be frugal and dedicated.

I read books on the tax benefits of real estate. 

I then filed my first year with TurboTax and was all of a sudden surprised. A lot of tax deductions didn't apply to me due to my income level. TurboTax though wouldn't explain the ins and outs but I started to find articles that explained some trade-offs online. 

This year I hired a CPA. He looked at my prior year return and even found mistakes from TurboTax. It cost some money to hire a CPA but I now think this is the best solution on the market for tax planning and filing with real estate. 

I still wish though that there was more intelligent software available that provided tax planning for real estate and filed taxes more easily than TurboTax. 

Any suggestions? How do you manage your tax planning and filing for rental properties? 

 I hired an accountant.

Originally posted by @Account Closed:

Hi @Account Closed I would start small and build a property portfolio and not take on any debt. With little $ you can get a website going (to sell what you buy), find motivated sellers, and start flipping property. Vacant land is a great place because no big issues and you can buy and sell all over the country fairly easily.  Let me know if I can help!

 Not take on any debt? Buying vacant land?!?!?!

I don't think this is good advice at all.

One thing I rarely see mentioned is the fact that a lot of these retailers overbuilt in the suburban areas.

I strongly believe that retail will survive, but we are going to go back to an older model. Basically there will be a lot less stores and people will have to drive a lot farther to do traditional shopping. 

Think back to the old days. Everyone from all over the area used to have to go into the city to shop. 

@Elbert D.

I would like to break the $250,000 mark on annual income. That would be through a combination of my full-time career, rental income, and wholesaling. I'm aiming to get my net worth above $1,000,000 by the time I hit 40. I turn 38 next month so I only have 2 years to basically double my current net worth.

In order to do that I would like to buy my first larger apartment deal. I'm aiming for at least 12 units. I'm also looking for smaller deals that I can do value add rehabs. I would like to buy a few more single family homes and do the BRRRR method on them.

@Calvin Thomas

You should be able to figure everything out during your due diligence period in terms of unit sizes and rent amounts. Ask to see the sellers tax returns. 

I'm assuming the seller self manages and has poor records of rent numbers? If so you may have to go door to door and ask the tenants.

During the inspection and appraisal the unit sizes will be reported. 

Keep in mind that any lies or misleading crap that the seller tries to do can be used as a negotiation chip.

@Scott Trench

I like the idea of investing for cash flow a lot, however I believe that the focus should be on larger multifamily if you are going to be out of state.

I would focus on the markets with the most growth potential. I love Atlanta and Dallas, but they might not be the best cash flow markets.