All Forum Posts by: Nathan Allan

I‘m looking for a tax guy who is savvy in Real Estate. Anyone have any recommendations? I‘m located in Utah but don‘t really care where they are located.

@Katie Greenman I‘m definitely for both! RE is where true wealth lays but being able to use contributions from your Roth is awesome! There is also something to be said for investing 100% in a taxable account so that you can also use your earnings and contributions to buy RE. But you can‘t go wrong with putting some in a Roth!

I‘m going to be buying a rental property in April. It‘s going to be owner-occupied and I‘ll be renting out the other rooms in the house. My question is should I buy it under my LLC as owner-occupied? Or just buy it under my personal name and transfer it to an LLC later?

@Oyinkan Prater

Hi Oyinkan,

I‘m a realtor with Livingstone Brokers here in the Salt Lake area. Marty Johnson with Fairway Mortgage has some really good 203k and renovation loans!

Feel free to DM me anytime with any questions!

Hi Nancy! I live in Ut County and am a Realtor with Livingstone Brokers here as well. One thing to ask is what does the HOA fee include. I've seen a good number of townhome communities that include utilities like water, trash, and sewer as well as insurance, maintenance, and pool/gym area. To me if some combination of utilities and insurance is included that makes a high HOA more worth it. If not, and its only snow removal or lawn care I'm not as willing to go for the High HOA.

@John Lewis I‘m a real estate agent here in the Provo, UT area. I just helped an investor close on a deal for a rental here in Provo before Christmas. I invest in real estate myself as well. Would love to help out any way I can! I have some really great property manager contacts in the area. DM me if you‘re interested!

What‘s your goal as a landlord/rental property investor? Make a profit every month. As long as you are cashflowing positive every month it shouldn‘t matter who the tenant is in your property. I would tell them find a replacement to take over your lease with your approval and we‘re good or pay 2-3 months rent in advance so you can try to find someone. Tenants will remember good landlords and recommend you to their friends who are looking for good places to rent. In my market most of the good rentals are found by word of mouth.

Also telling them to use you as their agent is a good way to go as well. Your commission could make up for some of the lost months.

@Justin Reyes I would say yes. For most people who only do the minimum to get the 100% match, your 401K balance is about 40-50% employer contributed funds. The 10% fee and the taxes you pay on it is in the end paid for by your employer and you‘re still left with some of their contributed money.

Everyone says get the employer match from your 401K at a minimum, but that just takes 3-8% out of your net take home pay. And you have to continue to do that to get the match. You can buy property, do the 20K down one time and make $200/unit for the rest of your life without having to put any money away in an account you can‘t use for another 40 years. Stick the dollars you would have contributed along with your rental income into a high-yield savings account where you get 2-3% and buy another rental in a few years.

The math pans out and you will always have a bigger nest egg in retirement going the real estate route than the 401K route...

Just make sure the properties you buy cash flow positive. Otherwise it will set you back for a long time.

I would be very surprised if you could get a rental property to positively cash flow on a 15 year loan in the current UT market. In other states that may be possible, but having done my own analysis on 100's of properties here in UT, it was difficult to find some good investments on a 30 year loan. Going along with Drew, flips may be the way to go here in UT for now. I know a lot of people who have done a flip recently in the area and have been able to profit pretty well from it if it's done correctly.

Also, personally you can always buy on a 30 year loan, and just pay extra each month in order to pay it off in 15. It gives you a bit more freedom, in case you have some crazy costs come up a few months and can't make that extra payment.

I would be there as well for a Provo meetup.