All Forum Posts by: Robert Rixer

Definitely a question for a tax attorney/accountant, especially with the dollar amounts involved. Generally though, you can deduct interest on the mortgage up to a certain point. If you do it all above board, you would pay taxes on the rental income received and your daughter would be using post-tax dollars to pay rent which isn't the most efficient.

Welcome - fellow Floridian. Definitely stay away from the guru/seminars crowd and stick with the organic communities like BP and local free meetups.

Not a helpful comment but lists are mostly useless. They float around for years and become outdated. Those that are actually good, get called upon/mailed/emailed an obscene amount by other investors.

Typically the re-zoning to condos will be a pain point. The sum total of taxes of each of the 4 units will usually be higher than if it were apartments. An HOA would have to be formed. Mostly tho, make sure there is demand for your product. I'm assuming it comps out otherwise you wouldn't consider it, but buyers have greater thresholds for quality than renters. Especially in today's high interest rate environment, a low income buyer is usually going to be better off renting than buying.

The truth is you can never get it "accurate" as the actual numbers will fluctuate year to year. Expense ratio, as others have stated, often ends up evening out these fluctuations in each expense and can often times be a more accurate predictor over many data points. I personally use 40% but I'm also in a higher rent area.

Firstly, becoming a multifamily agent is a fantastic way to learn the business first hand while making some cash in the process. It's probably one of the most underrated ways to learn and eventually become an investor yourself. See which firms are doing the most business in your community and reach out to them. As far as educational material, there are some good courses on underwriting in Udemy. A lot you can find for free on YouTube. Steer clear of any 4-figure courses or gurus. Multifamily is not rocket science.

A lot depends on the product. Many agency lenders won't touch anything below $2M and even then could be unfavorable terms. If your asset is older and/or smaller, you may have better luck with local community banks or credit unions.

With on market deals like this, there are two scenarios: 1) you see something that no one else sees OR 2) everyone else sees something you don't

Firstly, never underestimate the power of having low leverage on your property. It's far superior being underleveraged than overleveraged. Second, don't get hung up on what if's. If you find an actual property that looks like a homerun and would warrant a HELOC, then you can go for it without reservation. I would avoid buying a property for the sake of buying a property. Be patient!

You've answered your own question. If your gut is casting doubt on it, you need to listen - even if you can make mathematical sense of it.