All Forum Posts by: Samuel E Randall

@Benjamin J Haithcoat

Hmm.. you really don't.. That's why wholesaling and flipping aren't always number 1 on investor's bucket list. They are the most tax inefficient method since their profits are considered active, ordinary income subject to self employment tax as well. If you are really "making it," you could try to form a legal entity, such as a LLC, and elect to be taxed as S-Corp. That will just let you avoid paying SE tax on some of the income. But, you also have the expense of maintaining that S Corp. It really doesn't save necessarily that much.

I know people will say to deduct "stuff."  If they are entirely attributable to wholesaling, that means you actually spent the money.  So, it will save taxes but you also don't have it for profit...

To save on tax payments, another method would be put it into a tax advantaged account such as a self-employed 401k account.  the limit on that is some ~$57k annually I think.  The calc gets a little more complicated to get there, but I think aroudn $250k income you end up maxing out.  Of course, now the funds are in a 401k type account that you can't easily access.  .... unless you turn it into a self-directed account --- it just gets more complicated..

Sorry I don't have any better ideas.  Good luck.

My lender states I need to show rental income on my taxes before I can refinance my investment property. Since I purchased it in December it won't  show until next year. 

How do I get around this? I hear investors say they refinanced in 3 to 6 months using the BRRR strategy all the time. Surely they can't be waiting until they file their taxes to do so.

What mortgage product will allow me to quickly refinance? There are no limitations (pre-payment penalty) on my existing mortgage. So I'm not sure why I have to wait so long. Does the quick refinance only apply if you purchased your investment property in cash? I've heard investors state they have refinanced hard-money loans in a short period of time. Does this not apply to a good old-fashioned investment property mortgage?

Thanks in advance!!!

Quote from @Samuel E Randall:

Quote from @Lawrence Briggs:

I have officially CLOSED on my SECOND PROPERTY—a single family home, investment rental. This means that I now own two properties in Texas!

It only takes that one family member to start the generational wealth cycle; I am that person! Born and raised in New Orleans, by a single mother!

 Congratulations Lawrence! 

 Thank you so much! @Samuel E Randall

Nice to meet you Samuel! I'll have to give that episode a listen.

I'm in the Dallas area but am looking to connect with people all over DFW. I'll shoot you a request!

Yo Samuel! I house hack in Arlington and would love to connect. I’ll send you a DM.

I have officially CLOSED on my SECOND PROPERTY—a single family home, investment rental. This means that I now own two properties in Texas!

It only takes that one family member to start the generational wealth cycle; I am that person! Born and raised in New Orleans, by a single mother!

@Lauren Cromie you are using the BP rent estimator to get your rent.   I would reccmmend a couple of other sources as well like rentometer and local ads. If you are renting by the room this is another situation.  You estimate whether the property is worth it to buy by estimating the full value of rent without you living there.  

You estimate what you would charge for rent based on what a room for rent goes for in your area. So if a room for rent is going for $800 that is what you charge for the room.  You can look on craigslist, roomster etc to get an idea.  Rooms with their own bathroom go for more. Tiny rooms for less or may not be worth it to rent. Decide if you want to go furnished or unfurnished depending on your market. Doo you want a traditional roommate or more of a short term arrangement.  What arrangement will you have as far as rules, what amenities?  These will all impact your price. Good luck!

@Samuel E Randall welcome!  Always great to hear from a fellow Texan.  

Welcome! Do you have a meetup in the area? @Sherry Patterson hosts REI Impact meetups throughout our area. Tons of BiggerPockets members to network and learn from.

Welcome to Arlington Samuel! You're in a great market with its prime location between Dallas and Fort Worth. What type of investing do you typically take on?

I enjoy the new format as well. Episode 624 was strictly questions David was answering and I like those a lot more as he answers a variety of different topics. Very informational. 

Good luck with the heat :)