All Forum Posts by: Ash Hegde

Hi Edwin, sounds like you are making a great step with a multifamily house hack using your VA loan. I don't know the Orlando market so I won't comment on that one. I think tenant screening is one of the more important things for a new investor, so you are getting paid on time and your property isn't damaged. Brandon Turner has Multifamily Millionaire book that covers small multifamily up to large apartment buildings. Happy to connect and talk more if you'd like!

If you don't want to build your own out of state team, a turn-key provider might be a good choice for investing out of state. You won't get the built in equity advantages of buying and rehabbing a below market deal, but it will be a bit less of a learning curve at the beginning. 

Agree, they don't need to be local to you if you are comfortable with speaking over the phone or video chat. All of them should be familiar with federal tax law. You should get one that is familiar with your state and local tax laws as well.  

Welcome to the forums! Looks like you are getting everything straight with your debt and credit. Charge-offs falling off the report and paying down your utilization should help quite a bit. Depending on the business deductions you are taking, you may have an easier time qualifying with a loan using your bank statements. You have some cash as well for a down payment so overall you are in decent shape, probably better than you think. Keep grinding! 

Do you have the ability to raise rents and lift that NOI number? Having some kind of value add, or just buying something that has below market rent that can be raised, might give you enough of a return. Keep in mind that using HELOC money rather than cash is going to make the cash flow look worse, but you'd have zero of your own money in the deal.

@Russell Brazil do you charge that at closing or when you go under contract? I think the timing is the issue here more than the fee itself. 

Is this strictly for trying to save on taxes? Are you only managing your rentals but just under this new company? If so, it's possible that this is disadvantageous. Usually an S-Corp is used to limit self employment taxes, but passive rental income is already not subject to those taxes. You may be adding additional payroll tax to yourself (for the salary amount) by transferring income to the property management company. In addition, if you are not a real estate professional, you might be taking additional losses in your real estate that you can't deduct. 

FHA works well for a house hack, if you want to live in one of the units and rent the others. It gives you a great low down payment option but it does rely on your personal income and debts.

DSCR works better if you don't want to use your personal income and debts, but instead go off the performance of the property to pay for itself. You'll need a higher down payment for this loan.

Welcome Donald! There are different price points around Miami, it's gotten more expensive over the last couple of years like most places, but it is no where near the New York or California areas. It's cyclical here too, more highs and lows than the average market. I guess the easiest answer is to tell you to bring as much as you can and see what's available when you get here! Feel free to connect if you need anything. 

That's a good question and likely one for the agent who knows the area you are looking to invest in. Some markets stay fairly stable and some are volatile.