All Forum Posts by: Sam Yin

@Henry Clark this is true... BUT I think you have to live (have residency) there 10 years to get thar full benefits.

I could be wrong... But that's what I last found out in my research. Then again, I'm married, with several kids, so I tbeen known to be wrong several times in the past.

@V.G Jason Very nice. That was a great explanation. I think the insight into higher quality/prices assets is not discussed often enough. I see a lot of investors drawn to OOS investing for the potential higher cash flow. Some even argue they are able to buy in a Class A neighborhood in OOS. But that's still short sighted.

I totally agree on the way you described the higher quality assets as the one that people could not afford to buy, but you will have the inventory to rent. That would allow the better quality tenant to live in the area they correspond with and will likely give you much better stability based on their qualifications. Great post!

I would like to add that even in tertiary markets, there are locations/assets that meet this. However, it would be difficult to properly identify it from OOS.

@V.G Jason

That's how I set mine up. My LLC is the manager of all the assets. Along with a few LLCs that each own a few buildings. However, I also carry a few umbrellas to cover each group. All are contained in my Trust.

It's cheap, it's easy, and simple. It might not be perfect... But nothing is perfect.

@Steven Westlake

Quick answer, NO. As @JD Martin stated, it would be short sighted. I pay for umbrella above the insurance as well.

Your rates are reasonable. You need to pass it to your tenants. I'm paying around $50k/y on my 6 apt buildings alone. You got off cheap. I'm sure mine will keep going up, and hopefully not get cancelled here in CA.

Is this property for you as a primary or for a rental? If it's a rental, take emotions out. In fact, if it's just going to be a temporary primary, take emotions out. Buy if the deal makes sense based on numbers. 

I'm not sure how long you have been in escrow, but if you are having doubts, better act fast.

@Alex M.

How are you doing in your REI journey? Any adjustments to the plan? Did you meet or beat it?

@Dasha Taylor

The short answer is YES. It is more than possible. You can do it now or when you turn 18.

The other part of the equation is your criteria. If you are interested in investing, then just get a property that you are willing to live in with as many rooms as you can afford. This would be your first stepping stone property. Do not try to buy for appreciation or a great neighborhood. You must be realistic with your income and savings and affordability. In a year or two, move on to something better, and repeat. You will likely be looking for properties around $100k or less for your current income. If your side hustle grows your income, then you might look at $150K. There are tons of properties in that price range across America, just not on the coast, in the metro, or a prestigious town. But that should not be your goal. It should be to get a property under control.

For what it's worth I did it when I was in highschool. I was working, making some money, and I did not want to rent a room from anyone. AND no one told me I couldn't do it. I found an agent, she found me a house in my price range, and the escrow/loan officer did her magic to make it work.

@Duncan Hogan

If you are an experienced investor, you can get creative since you know the risks. You would likely be able to recapitalize quick.

If not, I would avoid that creativity, especially with friends and family... Business does not mix and the outcome can be emotionally devastating. Not worth any amount of money.

If you are the latter, I would follow @Chris Seveney advice.

@Liel Lazar

A question: did you ask if there were any insurance claims? Or did you find out through escrow/title last minute? If you asked and they withheld info, you have a stronger leg to stand on. If not, it should have been part of your due diligence to request a loss run report.

In any case, if the building is good and your property inspection report is good, and the price is right, just close the deal. You will never need to deal with the players again. There is no need to factor in attitude or personality in the business. I understand that some might take a strong stance, but I personally don't. It's just business. I'm not going to lose a good opportunity that I need for growth due to someone's bad attitude.