All Forum Posts by: Ken Nakamura

From DIY $0 to a full-time staff hire, how much do you spend on tax advisors and tax prep and why?

It’s our first year in business and lost at what I should spend and what I’m going to get in return.

I’m still new so take this with a grain of salt. But your appraisal is an estimation of the current value of your property. 

What you want to do is understand the future value of your property to predict how much you will potentially lose or gain by owning this property.

To do this, you need to look back to where things were, and establish a trajectory of where you think things are headed. You said prices are stable in your neighborhood so that’s already one data point and trend you’re seeing.

The key is coming up with the right combination of data points that allows you to start predicting trends and see a clearer picture over time. this comes not just with research but also experience. You learn from your losses and gains and apply those learnings to improve your outcomes moving forward.

So an appraisal is a valuation of what your property is with today. A single, starting data point. Look back to historicals to understand how things are trending. Then add in assumptions and data to start projecting whether the value of your property will go up or down looking ahead.

I’m sure you’re aware of these principles. The key is starting to build out assumptions based on research and MULTIPLE data points, not just this appraisal, and start having a clearer idea or thesis of where you think values are headed. There’s tons of YouTube, podcasts, and blog content out there that tells you how to do this. 

Does anybody have any updates on using companies like Ribbon, homeward, Accept, and FlyHomes? 

I’m a first time investor looking at STRs and thinking about using them to increase my competitiveness in bidding and would yo hear about peoples experiences. 

@Andrew Postell Thanks so much for the detailed response! Very insightful! 

If I'm willing to give up the the PERSONAL needs (willing to sacrifice commute, neighborhood preference, etc) in order to find a BRRR property that fits the formula, are there any other factors that make BRRR a bad idea for the first property?

And is there any advice against using low down payment loans to purchase a BRRR property?

I'm willing to sacrifice personal needs in the short-run in order to make my down payment and money work harder in the long-run. Which is why I've been thinking about a BRRR / House Hack. But I'm trying to get advice from people with experience to fine-tune this strategy. Or at least be aware of the various implications of implementing such a strategy.

Thanks again!
Ken

@Andrew Postell I'm in a similar situation looking to purchase my first property/home. I was thinking of a combination BRRR / House Hack where I would buy, rehab, rent, refinance, then live in one unit and rent out the other unit.

I'd love to know why you wouldn't suggest BRRR on the first property.

Thanks!
Ken