All Forum Posts by: Lee Ripma

@Shawn Pacaoan

Great work not closing and taking on the tenant! I would wait on the owner to deliver vacant and if they can't move on to another deal. This is the value of buying SFH instead of 2-4 units in LA. I would not recommend closing on any property with under market tenant-occupied property as an individual/novice landlord.

What market is this in? I know the rules of thumb for my OOS market but not sure where this is. I really like a duplex over a SFH as the first OOS investment. They just produce more income with similar expenses to a SFH.
You have a W2 so you can easily get loans, which is great! 

@Yves Yanuaria I think it's great, you've done your research, and you're ready to do it. My personal opinion is that people try to build a team to early. Right now you just need a realtor/deal finder. Once you're in escrow you can get the contractor and PM through referrals. If you're doing BRRRR you'll just be using your HELOC so no lender until stabilization. You have a plan, go do it! Once you've done it you'll refine it and get better and better.

I also agree with the idea that it can make sense at first so that you understand it. I personally did it myself for my first few units. I do not enjoy PM and I am bad at it. The skills I have are worth more than me being my own PM. However, it’s true that on your watch your properies will perform better. Even with me being bad at PM I retained more cash monthly than I do with a PM. However my time is free to go buy more props and do the things I’m actually good at. Trade offs, fact of life. 

@Gary Liu I personally just invest. I don't confuse living in real estate with investing in real estate. Others disagree and just like to live in it. My advice, do at least one! 

@Prithvi Sri And I'll third the cost segregation study investigation with you qualified CPA who knows about real estate. 

@Rick Albert - I'm in the @Tony Clark camp. I don't confuse living in real estate with investing in real estate. I invest in real estate. I live where I want. I rent in LA. I own a place in Mammoth Lakes which is purely for my enjoyment and it has negative cash flow and positive enjoyment. I invest in small MF in the Kansas City market (both KS and MO sides). Everything I invest in is purely an investment and I don't have to worry about my taste if I want to live there if I feel safe at night. I'm not my target tenant. 

@Krystal Marquez

What is your goal? Find stable properties at a lower price point and a more favorable price-to-rent ratio than where you live? What market in TN are you in? Is it not aligned with your goals? 

@Ben Bolingbroke

I would tend to spend my 30k on a new TPO roof or marketing to find deals, however, I think if you can get going on MF investing then 30k is an insignificant rounding error. If 30k helps you get going, then I’m sure it’s worth it.@Paul B. made a great point that anyone can close on something if they overpay. The thing that is hard to find in this current market is deals. Usually the thing you’re agonizing over doesn’t matter. If I had spent 30k to get going 4 years ago it wouldn’t have any effect on my today. So don’t sit around debating spending 30k. Do get started with investing. 

here is a link to a blog post explaining this. https://www.redhairholdings.co...
the problem with kbkg is that if you make an error on input you can’t correct it. I can’t give tax or legal advice but I personally use DIY cost seg.