All Forum Posts by: Remisola Omodara

Husband and I have 3 rental properties between us that were we lived in separately at different points before getting married. Because they were primary residences, we had homesteads on all of them. We recently purchased our "forever" home together in another county and applied for a homestead but of course we were denied because they found out we had 3 active ones in another county. We plan to remove them all to protect from tax increases on our current primary, but I am afraid that now that the other properties won't have homesteads, we may see skyrocketing tax bills and it will eat into already small cash flow from rental income.

Does anyone have advice for how to handle this situation other than just increasing rent? Rent is already in line with the market on all 3 properties and we have a few hundred dollars of cash flow. Thanks!

Thanks for that response, Matthew! Are you getting taxed during that time of building up reserves or you'd have a bunch of write offs?

Hi! I'm a buy-and-hold investor currently trying to expand into multifamily and focus more on cash flow. One of my hesitations is that multifamily homes are typically older and come with a lot more maintenance. I've seen people purchase units that will net them under $500/mo after all expenses and I'm genuinely curious how you account for potential repairs down the road related to HVAC, roofing, etc.? I think the obvious answer is to ensure these have been updated recently, but nonetheless, what if something goes wrong? I'm struggling to wrap my head around purchasing a property that cash flows $500/mo and then in a year potentially needing to spend $5K to fix something major. Didn't that just eat into most of my profit? I'm coming at this from the angle of wanting to use REI to replace my 9-5 income to have the option to quit as I start expanding my family so I want to make sure I'm accurate in the numbers of what it would take to actually get there.
I would love if someone could explain this to me! Thanks!