All Forum Posts by: Priyanka Verma

Hey Michael,

Rent-to-own can work if structured right. It gives him time to prep for a purchase and gives you a committed buyer, plus maybe an option fee upfront and better care of the property. But it also means locking the deal for a while, and if the market takes off, you might miss out on appreciation.

If you’re open to holding it 1–3 more years and want to help him out, it’s worth exploring just get a real estate attorney to draft a proper lease-option agreement. Otherwise, a regular sale later might just be simpler and cleaner.

Either way, nice problem to have with a good tenant!

Hey Keaton, welcome to BiggerPockets - seriously impressive that you’re starting this journey at 15! You're already way ahead of the curve just by thinking long-term, learning the basics, and building a plan early.

Here are some quick thoughts based on your post:

1. Your plan is strong and realistic.
Studying real estate, avoiding debt with community college, then transferring — that’s a smart financial move. House hacking a triplex while in college is one of the best ways to build equity and live for free (or close to it).

2. Real estate + finance = great combo.
Finance gives you the money skills (underwriting deals, understanding leverage, ROI), and real estate gives you the industry know-how. Urban planning is a solid minor, but also consider business or economics depending on your interests.

3. Getting your license = smart.
Being your own agent can save you on commissions and give you more control. Just know that it’s still a job, and managing it alongside school and investing will require time management.

4. Focus on location selection.
Choosing your 4-year school based on the surrounding housing market is genius. Look for markets with landlord-friendly laws, stable rental demand (college towns help), and appreciation potential.

5. Build your network now.
Join your local REIA (Real Estate Investors Association), even if you're just there to listen. Connect with agents, lenders, and property managers. BP forums are great too — ask questions and share what you're learning.

6. Keep learning but take action when ready.
Knowledge is power, but taking action is what moves the needle. Analyze deals, run numbers, and when you’re of age and ready, don’t be afraid to pull the trigger on that first house hack.

You're already doing what most people don’t start until their 30s. Keep the momentum going, and don’t hesitate to DM others here if you want to connect with investors who’ve been where you’re headed. You've got time on your side use it well.

Keep it up :)

When a real estate license can be worth it:

- Access to MLS: Huge if you're sourcing deals yourself. You get data faster and more detailed than Zillow or Redfin.
- Saving on commissions: If you're flipping or buying multiple properties a year, saving 2–3% as a buyer's agent adds up.
- Networking: Being licensed helps you build relationships with other agents, wholesalers, contractors, etc.
- Side income: You can earn referral fees or occasional commissions if you're active.

But it’s not always necessary:

- Disclosure rules: Licensed agents have more legal responsibilities you must disclose you're an agent, even when negotiating your own deals.
- Costs/time: Classes, exams, continuing education, brokerage fees — it’s not free or passive.
- Not helpful if you're passive: If you're working with agents already and not sourcing your own deals, the license might not bring much ROI.

Hey Shane, 

Yes, it's possible to earn around 7% ($8k/month) on a $1.4M all-cash investment, but it depends heavily on where and what you buy. You’ll likely need to look in strong cash-flowing markets like parts of the Midwest or Southeast think Indianapolis, Memphis, or Birmingham where cap rates are higher and expenses are more manageable.

To truly net 7% after property management, taxes, insurance, and maintenance, you'll need properties with at least 7.5–8% cap rates. Newer duplexes or small multifamily units in good neighborhoods can help reduce risk and maintenance costs. Just note, newer builds may have lower returns, so it's a balance.

Also, watch for rising property taxes and insurance they can eat into your profits quickly. If you stay disciplined in your deal analysis and market research, this goal is doable, especially if you're planning to live in a low-cost area and keep your lifestyle lean.

Thanks

Hey Steven,

Here’s what you need to know based on how things usually work in the U.S. though local laws can vary

1. Property taxes are typically based on the county assessor's valuation, not the sale price. So selling to your own LLC at a lower price won't automatically reset your tax assessment.

2. In many states, assessors are required to use fair market value (FMV) for tax purposes, regardless of sale price especially if the sale is non-arm's length like selling to an entity you control.

3. Assessors often flag related-party transactions, and they may ignore the sale price and instead rely on comps and previous assessments.

4.. Also, some jurisdictions reassess on sale, others don’t unless major improvements are done so you'd want to check with your county's tax assessor’s office before making moves.

Lastly, keep in mind the legal and loan implications of transferring to an LLC especially if there's a mortgage involved due-on-sale clause risk.

Hope this helps, anyone else here tried this strategy or challenged their tax assessment?

Find Sellers Who Really Need to Sell - Look for people going through tough times — maybe they're behind on mortgage payments, dealing with divorce, or have a vacant house they don’t want. These sellers are more likely to accept a lower price just to be done with it.

Know What the House Is Really Worth - Check what similar houses in the area are selling for and figure out how much fixing the house would cost. Use that info to explain why your offer is lower — it shows you're not just throwing out a random number.

Be Ready to Buy Fast - If you’re already approved for a loan or have cash, sellers will take you more seriously. People love a quick and smooth sale.

Don’t Be Rude and Be Honest - Keep it respectful. Explain your offer and how it benefits both of you like they don’t have to fix anything, or you can close quickly.

Make Their Life Easier - A seller might accept a lower offer if it means no headaches — like no repairs, no showings, and no delays.

Talk Like a Human, Not Just a Buyer - Be friendly. Ask about their situation, listen, and be kind. People are more open to selling cheap if they trust you.

Don’t Give Up After One Try - If they say no, check back later. Situations change, and your offer might look better after some time.

These tips are how smart investors and buyers get good deals by being prepared, kind, and understanding the seller's needs.

Congrats on making the move from single-family to multifamily—great next step. Redfin is fine to browse, but most solid multifamily deals are found through networking, local brokers, or off-market connections. Sites like LoopNet or Crexi can be useful for 5+ unit properties, but expect a lot of overpriced listings. If you're exploring short-term rental potential in multifamily, also GetChalet pretty helpful for ROI estimates, and local regulations for STRs, which is handy if you're looking at value-add or mixed-use properties. On financing, 2–4 units still qualify for residential loans like FHA or conventional. For 5+ units, you'll need commercial loans—usually 20–25% down and the property's income plays a bigger role. Try local banks or credit unions—they're often more investor-friendly than the big guys. Hope that helps!

Just make sure the closing on the new one happens after your current SFH sells.

You must get a Qualified Intermediary (QI) involved before the SFH sale closes. If you close without the QI, the 1031 is blown.

The HELOC will get paid off at closing, and the rest of your equity will go to the QI to use for the new property.

It's normal for the seller of the apartment to wait on your SFH closing — just be transparent and set the timelines in your contract properly (maybe add a contingency).

So yeah, your outline is close — just hire the QI first, then everything else follows. It’s not as clunky as it sounds once the timeline is mapped out. If you’re trying to avoid capital gains via a 1031 exchange, the intermediary (QI) needs to be in place before you close on your current rental. You can get under contract on the new property, but do not close on either property without the QI involved.

Honestly, if you’re asking what’s the right thing to do - go with the $7K contractor if they do quality work, and let the insurance company know the actual cost. They’ll usually just adjust the payout or ask for the invoice.

Keeping the extra could be seen as insurance fraud, even if it feels small. Best to just be upfront. You’ll avoid any risk later, especially if you have to file claims again in the future.

Welcome, Ale! 👋

Looking forward to seeing how BiggerPockets evolves under your leadership. The community has grown into such a valuable space over the years — excited to see how you’ll help take it to the next level. Appreciate your openness to listening and learning from us.

Wishing you all the best in this new chapter!

Regards,
Priyanka