All Forum Posts by: Scott Hawley

If you know of a self-directed IRA custodian that works a Coverdell ESA account, please let me know.

Thanks,

Scott

I'm looking for commercial lender referrals for an 8-plex in Kansas City Missouri. This property is more challenging to find a lender because the purchase price is ~165k and most lenders have a minimum loan amount above that. The appraised value is currently ~198k and will be north of 250k after I complete a rehab and raise the rents.

If you know someone who lends on an 8-plex with this low of a mortgage value in Missouri for a >=5 year term then I thank you for your referral!

-Scott

Hello BP Community! I'm evaluating whether I buy 3 SFRs near Pittsburg Pennsylvania in New Castle. Two are on the upper side, one on the lower side. The purchase price is $120k for all 3 with $3k in repairs needed. The rents are 2500 combined (875 for the upper side ones and 750 for the lower side one).

I don't know the area and would love your advice. My goal here is high cash flow properties and I'm not banking on any appreciation. If you know the area, what are your thoughts on a stable renter base? I'm factoring in 5% for vacancy, 10% for repairs (they are 1920 homes), and 5% for capex (2 are newly remodeled and the 3rd is a year from having been remodeled).

Thanks in advance for your feedback!

-Scott Hawley

Natalie Kolodij is a local CPA that specializes in real estate. Scott

Keep trying banks until you find one that will do an out of state HELOC or sell it. PM me if you want an agent referral. Best of luck, Scott

Teri S. that isn’t how it works. If you buy a 100k house in December, you do not show a 100k expense on your taxes to offset 100k in gains that year. When doing your taxes, you have to list the assets as inventory. You would have a small loss for the expense of the closing costs, but the expense of the house would just be inventory that you carry into the next year. I hope that helps! I’m not a CPA, but I get advice from a great one. If the above is confusing, please seek one out.

Alex Huang that is true when you file taxes as an S-corporation. An LLC can elect to do this. Talk to your CPA about when it is best to do so. This helps one to reduce taxes because the dividend portion of your income is not subject to self employment taxes.

This is the latest flip we have done: https://www.redfin.com/WA/Kenmore/6178-NE-187th-Pl-98028/home/95088 If you like the staging PM me and I’ll share the contact info. Thanks, Scott

Agreed Mike! After you are experienced she could go in on a deal with you and be a % owner. Scott

Nghi Le what areas in the two hour range do you like for cash flow? I’ve been looking out of State and would like to compare them. Thanks!