All Forum Posts by: Michael K Gallagher

@Mark D. I'd hang onto it, especially knowing that the Hospital is coming and that the FL RE market is historically very strong.  

Alternative income streams being close to a hospital could include "furnished finder" for attracting traveling nurses when the Hospital is up and running.  Perhaps residents/nursing students become a future target market for tenants.  So perhaps take a negative cashflow for the first couple years and then you are able to use a shorter term solution like renting to traveling nurses to demand a higher price and cashflow it at that point.  Plus I'm partial to a long long term view, and when the property is paid off even at $2200 a month, that's a decent amount of income to build into a retirement plan.  

If you plan on making further income property purchases being able to borrow against the equity in this property can help you fund those deals and in the future you can always leverage the cashflow from those to help pay down this property. 

Bottom line, I'd view it from a very long term lens and see if it fits in a plan that works for you.  At the end of the day if you keep it for a year and it's not working out for you or your situation changes or a deal comes along you want to jump on, you can always sell at that point.

@Tony Robinson fantastic Deal, Well done.  I'll have to ask for those financing terms in my area!

 I second the note on the Jordan podcast!  that interview was amazing....and even more fascinating was the follow interview Meet Kevin did with Jordan!  Goes into a lot of body language and such...very interesting.  

@Remington Lyman agreed! working on it for sure! 

@Robert Ellis I just manage for myself, and just have the one unit under management at the moment.  

Hi @Shimi Elimelech I am in Columbus OH, so I would not be much help but I do know that BP is probably the best place to find someone.  Might want to try posting to a Cleveland specific forum...I know that @Ondrej Brown is based in Cleveland,  He may be able to point you in a good direction.  If you ever find yourself wanting to expand to Columbus OH let me know, I'd be very interested in helping out.  

Good Luck!! 

hey @Tom Rottler the numbers look like you accounted for just about everything which is fantastic.  I'm not sure the state of the property or how "nice" it will be post rehab but if you end up with a nicely finished property that has many of the mechanical systems and such in good working condition that's a strong deal in my opinion.  I'm a big fan of front loading the costs of capex and doing all that major repair up front so you don't have to worry about it.  

I'm not too familiar with the Hamilton OH area, other than visiting while going to Miami, but $1400 a month seems reasonable.  

let us know how it turns out and if you get the deal!

@Nathan Salgado Sorry to hear you are in this mess!!  And obviously not knowing the details of your situation my first instinct is to go to a different lender.  If you are purchasing a primary residence traditionally there is a lot more flexibility in the down payment.  Now I realize things are probably a little different for new builds, but still conventional loans let you purchase a primary residence with as little as 5% down.  So thats my first thought, find a new lender.

If you are selling your current residence to move into this new build would the profits from that sale cover it?  Or if you are keeping the current home is that the issue with your current lender? they want more down or more in reserve because they want to make sure you pay on the second home....if this is the case and you plan to keep the property and rent it out I'd work on proving that that property will rent out for the money you say it will.  Find a tenant, screen someone and have them sign a lease for the number you need.  I realize its a little unethical but I've even known people to have their cousins or something sign a fake lease just to get the lender off their back.  I don't know if I'd do this myself but I know people do it and with the right intention I see how it can be ok.

Alternatively have you looked at different kinds of mortgages? FHA are cumbersome but could be a way for you to close, and then you can always refi to a conventional later.

again if you have a primary residence could you use a HELOC to cover the Down payment for the second property? Obviously this only works if the rent from the first place will cover the HELOC expenses, or if you can simply support both monthly payments that works also.

Let me know if I missed the point here, would love to help, just feel like I'm missing the root of the issue.   

@Garth Kukla I have a solo member S-corp so its a little different than your three member one but from what I understand I think you are going about things the correct way.  I don't see any reason why the company would not be aloud to keep operating...or collecting income, I think you are correct it should not be distributed to the share holders while they are collecting unemployment but from what I understand about the entity theres no reason the business itself can't keep making income.

Regarding the going into the office or continuing work from home.  I honestly do not know for sure what the "correct" way to handle it is, I can see how you can argue it either way.  The rules state that the active shareholders must take a "reasonable salary" so could you at the end of this year argue that the salary you took throughout the year was reasonable...I'm sure you could.  But as far as how to correctly document and record that work to make sure it falls into the correct categories, that is something you'd probably want to ask your CPA about.  

@Tommy McGraw very cool concept, I for one really like the logic you laid out for going with Condos and not Apts.  The only issue I can think of is that depending on the market, that investors would come in, buy the condos and rent them anyway....so perhaps depending on how that plays into your long term models and plans there might need to be some kind of bi-law in the building where there needs to be a certain number of owner occupants at any given time.