All Forum Posts by: Nicholas L.
Nicholas L. has started 3 posts and replied 5629 times.
Post: Licensed vs. unlicensed contractors in California and new fence or just fence repairs

- Flipper/Rehabber
- Pittsburgh
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hi Becca! i'd go with repairs and prolonging life unless you think a new fence would help you get substantially higher rents.
Post: Hello from NYC!

- Flipper/Rehabber
- Pittsburgh
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it's house hacking.
Post: Is 8-12 % Cash-on-Cash Return Still Realistic in Today’s Interest Rate Environment?

- Flipper/Rehabber
- Pittsburgh
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I think CoC is tough to calculate since it's going to vary every year. Right now I'm just looking for deals where I can leave as little as possible in - like a BRRRR where I'm basically buying for closing costs. If I can do that and break even on rent every month, I'm good.
Post: Want to buy my first “Live in Flip” with Heloc

- Flipper/Rehabber
- Pittsburgh
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you'd refinance out of your current loan (assuming you had enough equity) and use a low DP loan again for the next property.
Post: Want to buy my first “Live in Flip” with Heloc

- Flipper/Rehabber
- Pittsburgh
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Post: Does long term rentals still work to build wealth?

- Flipper/Rehabber
- Pittsburgh
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eventual rent increases
selling a property and using the proceeds for something else
selling a property and using a 1031 exchange
tax benefits
Post: First time out of state Investor

- Flipper/Rehabber
- Pittsburgh
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I'm with @Travis Timmons on this.
Same point: if you borrow 100% of the purchase price and purchase in an area you're not familiar with, you will just lose money. Everyone else involved (agent, title company, PM, contractor, bank, etc.) will make money; you will not.
A HELOC feels like free money and definitely is not.
And, rehabbing out of state using 100% borrowed funds is hard mode. I'm working on a rehab 30 minutes from me, and it's a challenge.
If you posted and said, "I'm interested in Pittsburgh solely because of the price points and don't have any intention of visiting or setting up a team," I'd say, that's nice! Don't buy something here, then. Keep saving up. House hack in California instead.
Hope this helps. We're happy to answer any additional questions you have, and as you can tell, we're trying to talk you out of it, and not into it.
Post: Does long term rentals still work to build wealth?

- Flipper/Rehabber
- Pittsburgh
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the 1% and 2% rules have been misinterpreted. all they do is help screen out properties. you would never, ever buy a specific property because it met a "rule." but if you have 100 properties to analyze, you could quickly screen certain ones out and narrow down to, say, 10, or 5.
i don't use the rules at all because all i do is look at specific deals.
it generally makes sense for new investors to start with a house hack. the purpose of a house hack is to build equity. then once you're in a stronger financial position, you can look into rentals.
Post: Need to buy STR by end of the year...

- Flipper/Rehabber
- Pittsburgh
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Hi Erica. I (1) don't invest in STRs, and (2) don't know much about you, but I always get nervous when people propose buying an STR solely for tax reasons. And I think it's kind of crazy that a CPA would "tell you" to buy an STR... was that just one option of several he gave you?
So I'll ask... are you otherwise interested in owning and operating an STR?! What if you rush and buy a dud? STR is ruthlessly competitive right, now so losing money operating it will more than take away the tax savings...
We've just seen several posts here in the forums here from folks who (1) bought in this price range, (2) couldn't get enough bookings to offset the monthly costs, (3) started losing money, and then (4) couldn't get their sale price... making them really stuck.
Just trying to watch out for your capital here... if you are otherwise passionate about STR operation or have been wanting to buy a vacation property for years, great. But I did not see that in your post.
Post: TurboTax vs. CPA for only one rental?

- Flipper/Rehabber
- Pittsburgh
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@Brandon Garcia I think I hired a CPA when I got to 5. I think it depends on your overall tax situation and if you have anything else complicated. One property is not at all difficult to do yourself.