All Forum Posts by: Kingshuk Banerjee

I own a rental in the NB area. I bought it as new construction on 2021, closed in 2022 and running well. 

Please do run your numbers and keep reserves so that in case of vacancy or repairs, you do not feel uncomfortable. Now mortgage rates are high and prices have not come down much in comparison, so I would run cash flow numbers conservatively (at least should be break even after all expenses) and not depend solely on appreciation. 

Other thing to consider is property management and your time. Will you manage yourself or hire a PM? 

Somewhat unrelated to your question but I will mention anyway - You may also compare with other forms of passive real estate which has better diversification and see if it suits you - REITs or private funds. 

@Chilann Chan I started with SA, looking for pre-owned SFR. But the competition and multiple offers did not materialize for me. So I am looking at new construction which are mostly in the SA satellite cities like NB, Seguin etc.

Hi, I have been looking to purchase rentals in the San Antonio and New Braunfels area. I live in Austin but Austin is crazy now. NB still has houses that cash flows marginally ($50/mo). My realtor suggest to go for new homes (Lennar and Rausch Coleman) in the $220-$250k range and will rent for $1500-$1650. Is it still a good investment given that I will have to mainly rely on appreciation in this area? The CoC return will be much less in the short term. My goals are not immediate cash flow but long term (15 years) hold.

I had invested in Dec 2018 and earned about 9% ($287 in an investment of $3000) including appreciation and dividends. This is in the growth plan. 

There are some questions regarding how dividends from Fundrise are taxed. From various forums, it seems they are taxed as ordinary income and not qualified dividends. 

Two major disadvantages of FR are

1. Il-liquid - You cannot sell when you want to. They do provide a quarterly window but do not guarantee that your units will be sold. 

Here is a communication I received at end of 2019. 

"
Beginning January 1, 2020, all redemption requests submitted for eREIT investments will be processed on a quarterly basis, as opposed to a monthly basis after a 60-day waiting period. We made this change because we think it’s easier to understand and ultimately a better experience for you, the investor. "

"
As a reminder, redemption requests are not guaranteed to be approved. Real estate is inherently a long-term, illiquid investment, and while our eREIT programs strive to provide early liquidity to investors who need it, we may suspend or limit these programs in certain scenarios, such as during a financial crisis.
"

2. Tax treatment is unfavorable compared to other investments, for example, long term capital gains of Mutual Funds or ETFs.