All Forum Posts by: Account Closed

@Jay Thomas appreciate that.. I agree it’s the risk/reward factor for me. It’s my first out of state multi family

Real estate ownership is good for high net worth individuals in general.

Cash-flow will generally not be taxed when you factor in depreciation.
If you are a high net worth individual, your tax rate is likely around 45%(35% Federal and 10% for NY/NYC)

Therefore, $1,000 of cash flow is $1,000 after tax
On the otherside, $1,000 of interest income is likely around $550 after taxes.

Best of luck

Pros and cons of purchasing a multifamily in these states..I found one in each 4 unit in Ohio in a rural area. A 6 unit in Iowa in a busier area. Thoughts?

I love the bigger pockets community to bounce ideas off the group. Here’s the opportunity:

I’ve found an experienced operator (250 doors under his belt) who specializes in Home choice voucher program (HCVP) or section 8 housing.

The numbers are a 70/30 split. We forum an LLC together were in 70% owner. I hold majority to all key decisions. I'm providing all the capital while him and his team finds the deal, repairs property, finds tenants, and manages the property. I can be involved as little or as much as I'd like. (I'd like to since interested in this real estate asset class).

His main market is Cleveland, but also has Toledo, Memphis, and a little Jacksonville. Buys single family homes on the $50k - $75k range give or take $5k. 

I’m new to Section 8 housing. I’ve been doing a great deal of due diligence on the team and the asset class as a whole. What are your thoughts? I would love someone’s take who’s invested in HCVP. What are the pros/con? Tips? Any advice would be well received. Thank you all. 

Ok, so I'm doing what I've been coaching and doing for 30 years. ;-)

BUY OFF MARKET IN 2024 ! So, what's the trick?

People with properties that want to sell, have excellent interest rates, they're just not on the MLS. You don't find these in Socal, they are in places like TX, AZ, GA, IN & OH & TN.

And it's your mission, if you choose to accept it, to learn how to find these treasures. I buy them using Subject To (shortened for some reason to Subto), but you can use conventional financing, hard money, SDIRA, or 401(k) 

That's the thing, it doesn't matter if you use a bank or don't use a bank. It's just easier and more profitable if you don't use a bank. 

They can be rentals, Fix & flips, even STR, take your pick, but my cadre of investors is forming a new group for this very purpose. and we're excited about what we see. And you should be excited & planning for the New Year Too!

Hi - I am a new investor starting to invest in long term rental properties. I am a high income W-2 earner based in NYC. What tax strategies do folks recommend? This will be a passive investment. 

So ive looked into the forums about contacting the seller agent because I could have sworn I heard something along the lines that helps with a better deal. so back story found a fixer upper selling for hyper inflated price on the MLS. Seller is a RE investor as well, bought the property about 6 months ago and needs a full remodel. Is it better to contact the seller agent to maybe have them represent me to better incentivize my offer, though it's about 60% less than asking price? its a win win for the both of us but didn't know if that was the best idea to go about this. Any insight would help. Thanks!

New situation for me.

Renting to Prospective Tenant who escrowed Rent with Previous Landlord

The following information was forwarded with rental application.

A prospective tenant escrowed their rent with their previous landlord because the apartment complex could not fix their hot water heater. The tenant paid into their escrow account every month promptly and on time.  The apartment complex sued tenant for back rent. The court decided in favor of tenant and allowed them to break the lease. A portion of the escrow went to apartment complex and a portion to tenant. (do not know amounts). The period of time was 10 months of escrow. The tenant is now trying to recover escrow from landlord.

My thoughts are i'm reluctant to rent to prospective tenant due to unease over the possibility of a similar situation in the future. Other then this the prospective tenant semes to be a qualified candidate which would be verified once checks are completed base on application information.

Anyone else encounter a similar situation or have thoughts ?

Purchase Price: $420,000

Down Payment + Closing Costs: $98,000

Repair Cost: ~$50,000

ARV: $570,000

Forced Appreciation: $100,000

Deal: $420,000

Comp 1: $545,000

Comp 2: $620,000

Comp 3: $580,000

This was just a on-the-surface deal analysis and I was wondering if I was doing it correctly. Cashflow would be around -$500 a month, but that's manageable for me.