All Forum Posts by: Trey Read

Currently I am building a new construction home. I am on budget and it will cost $199,000 (including land). I personally have $10,000 in closing costs and property tied up. 

The home appraised for $275,000. 

I am house hacking it with Roomate's to cover mortgage payments. I only plan on living in this house for 1-year and selling before paying property taxes. 

My question is, how do I move to the next one. I want to keep building again and again (who wouldn't with those returns)

1) What's the best way to avoid capital gains? Can I transfer gains into next property to avoid taxes? 

2) Would a bank typically finance me for a new construction even right after I just closed on a new construction? 

3) Any other advice you have would be awesome. I really appreciate your time. Thanks. 

Looking for a RE meet-up in Central Ohio!

Looking to offer my help, to network and to gain knowledge

Not looking for a Guru sales pitch! 

I've signed up for a CORRE meet-up, does anyone have any reviews on this particular club?

Great list to start with!

Very Nice!

Hello, I will be living in Columbus Ohio this summer working full time for a well known construction firm. I graduate with my Bachelors in Construction Management in August of this year, after which I plan on purchasing an owner occupy multi to start my real estate investing business! I am seeking a part time job this summer (evenings and/or weekends) in the real estate field! I want to learn everything I can before I jump into my first deal! Thank you! Tags: Westerville, New Albany, Delaware, Powell, Gahanna, Worthington, Bexley, Dublin, Newark, Zanesville, Pataskala, Whitehall, Reynoldsburg, Central Ohio

I've heard a lot of people throw a minimum of $200 per unit, cash flow, when analyzing a property, whether it be a SFH or multi.

If the both are calculated to cashflow the same, I would go with the 3-plex, just because managing 3 units for the same income is easier than managing 6....Less work, same income. 

Originally posted by @Kory Clark:

My credit is not good at all. I'll most likely need to find a partner because I don't have any cash although I did just get hired at Ernst&Young so I'll have some money coming in. Would it be smart to pay off my debts first to help my credit score before I start trying to do deals on my own? 

Work to improve your credit. Research creative financing, possibly FHA loan. I would not worry about creating more debt, as long as the debt you are creating generates income. The longer you wait to get in on investments, the worse off you will be. This is the only principle that I disagree with Dave Ramsey on by the way.

Originally posted by @Gloria Mirza:

Originally posted by @Trey Read:

I'm not a super experienced investor but I would say no. Mainly because it sounds like you are using the profits from your rental to pay for your current home. If I were in your shoes, I would use your primary income (Full time job) to finance the house you live in, AND take all the passive income and invest in a second property, and repeat. 

I'm not saying it was a bad deal, as long as there is cashflow it usually isn't a bad deal. I would say the use of the money generated by your asset (trailer) is contradicting your plans of living off of rental property income, if that makes sense. 

-Trey

 I'm not sure I agree with you.  Money is fluid so it doesn't matter where the money comes from passive or earned, it's still income in your pocket.  It doesn't matter if you say that your earned income pays for your home or your passive income pays for your home, it's still your income.  Especially when you're only 27.

My only concern is that your rental is a mobile home. I assume you have to pay rent to park your mobile home there and that eats up at your income. If at all possible try to save up and exchange the mobile home for a SFR or multi family rental.

 Agreed, money is money, and it ends up in your pocket. But it seems his plan is to create enough passive income to live off of comfortably. So how you spend the money is either advantageous or detrimental to the overall goal. In my opinion, if you want to create that passive income quickly, you need to create exponential growth, and the best way to do that is to reinvest all of your cashflow instead of purchasing a 4500sf home (that doesn't produce) and using your cashflow to finance it. In my opinion he should save and invest every penny he can to keep purchasing good cash flowing deals until he has enough cashflow to live comfortably. 

Best,

-Trey

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