All Forum Posts by: Troy P.

Quote from @Derek Fike:

@Candace Pfab Yeah let's connect! I went to Gulf Shores & Orange Beach quite often when I was in college and absolutely love it. It's great to see how much the area has grown!

You know it's growing when they put a Buc-ee's nearby!

My family and I have been vacationing at GS/OB for the last 40+ years.  I've always wanted to land a condo down there but could never look at the numbers.  The insurance sounds frightening, the PMC sounds frightening, every time we have to call the PMC the experience is terrible.  Like previously mentioned, today's rates make it seem impossible, but I still keep the area on my radar for a "maybe one day".  Good luck! 

Good morning all,

I'll try to keep this concise without ramblind too much. My current REI investments consist of a small number of buy and hold SFH properties. They're cash flowing well and I thought this would be my primary strategy moving forward. After dealing with some of your typical "active" REI issues, I've been tossing around the idea of moving into a more passive role. I'm becoming more familiar with the concept of syndications but don't quite meet the minimum requirements to be considered accredited. My main goals are equity preservation through tax deferment and long-term growth. After looking at some options available for non-accredited investors, I'm hoping to get your advice, opinions, and lessons learned for any of the other options currently available.

1. Hard Money Lending - this seems like a no-brainer win-win but I'm having trouble finding information on how this affects taxes. Is an LLC or other entity required? Are 1031s involved? Is it filed on schedule E with little to no deductions?How is this better than throwing it all in stock market ETFs and collecting 8+%? How do you get started?

2. Crowdfunding - I understand some of these are open to non-accredited investors, but I'm seeing a lot of mixed reviews.  Same as above, how are taxes involved, depreciation, etc.  I haven't dug into all of the requirements for making this a success, so any advice here is appreciated.

3. Private Syndications - My understanding is these are few and far between and you really need a strong network in order to land one of these deals.  Do you have advice or experience for one of these?  I would assume the same level of homework is involved versus other types of syndications.

Thanks in advance for any advice you can offer!

I don't have any helpful advice to add to what others have already provided, but I do want to applaud you for living with family into your early 20s, playing it smart, and saving money to start a comfortable life on your own.  Well done.

Edit: I do have something to add.  Where ever you end up, look into house hacking.  While you're young and without children/pets (if that is your plan), that is a very common and easy way to get started, and it doesn't always mean multifamily duplex/fourplex.  You can buy a larger home and rent out the bedrooms and common space.  Just make sure you can afford whatever it is with vacancies and all expenses considered.  Good luck!

Quote from @Bruce Woodruff:

Quote from @Brian Ellis:

I would really suggest this, there are areas where you can really get some deals and good future appreciation...

I really need to do this as well, but the thought of not being able to put eyes on my own property is a little terrifying.  I need to brush up on the methods for making this a success.

Quote from @James Hamling:

Quote from @Troy P.:

Quote from @James Hamling:

Quote from @Troy P.:

Quote from @James Hamling:

Quote from @Troy P.:

Quote from @James Hamling:

Quote from @Troy P.:

Quote from @Bruce Woodruff:

Quote from @Troy P.:

I didn't say inflation decreased.  I said it increased while spending decreased last year.  

Lol. I know this is what you said, and it's an OXYMORON: 

There has NOT been a decrease in spending, that's just not true, your lying. Just like your lie that only wealthy people are buying homes, or your lie that most who bought the last year or two no longer can afford those homes they bought, or or or..... 

I don't know what your deal is, other than someone at your monthly Young Communists of America meeting mentioned come onto BP and troll "those capitalist pigs", and here we are? 
I have more than made my points, you've replied making it crystal clear all was with intent, and thus you have earned my block, your dead-to-me. 

Mr. Hamling, I believe part of the issue is a misunderstanding.  I did not say people who bought homes can no longer afford them.  I said a lot of people who could have afforded one, now cannot.  I am not a communist but you got one thing right, I'm young and willing to listen and learn.  I understand you stereotype my generation and would rather point fingers and degrade people instead of helping them learn from your vast wisdom and experience, and that is disappointing.  Thank you for providing your input, for what it's worth.  Good day, sir.

Looking at the bigger picture, you have to provide heating in a home that requires it.  You cannot control the cost, but you can (to some degree) control the usage.  One option is to run the main unit to a more comfortable level and let the others supplement their space with a heater connected to a kill-a-watt outlet meter.  You can then charge them extra for using the extra electricity which became more of a luxury than a necessity.  Although I would go with the next option.

Another option is increasing rent for all tenants across the board.  If an increased electricity bill is bringing you here looking for advice on this, I'm assuming this should be done regardless.  The owner should not be the only one suffering through increased energy costs.  That has to be handed down to the tenant to some degree as well.

My final thought is that you can keep your current rent rate but split electricity costs equally between all tenants.  This may be more pallatable for those looking for paying less rent, but not very appealing for those who regularly spend extended time away and would be paying for others' usage.  There's a lot to consider here...

Quote from @Scott Mac:

Quote from @Troy P.:

I just wanted others' opinions on this matter.  I have a tenant who installed a window unit in the master bedroom.  It's clearly not allowed per the lease but I'm not sure if it's worth approaching them over and potentially getting on bad terms.  I know it's not necessary since the main unit works fine and the temps are not near high enough to justify it.  Not only that, this is the coldest room is the house during the summer.  I noticed there is a huge gap to the outside where it's not properly sealed, allowing water/critters into the home.   I would at least mention that it should be professionally installed if not asked to removed.  Have you run into issues allowing tenants to keep these?  TIA

You rented out a place with ingress/egress for critters and bugs...

At a minimum you should seal the place up properly.

Maybe try some spray foam.

https://www.homedepot.com/b/Building-Materials-Insulation-Spray-Foam-Insulation/N-5yc1vZbaxj

Also, the amp draw on the A/C should match the plug and not overload the circuit.

Having an electrician run a special dedicated larger amperage plug just for A/C use might make for a safer install (fire-wise) and if you go with a bigger amperage (special plug required) outlet, renters could use a larger A/C unit to cool more of the house.

For a little out of pocket you might get a much better rental.

Good Luck!

 Hi Scott,

Maybe you misunderstood.  I did not install the window unit and the window was sealed when it was rented.  The tenant installed the unit and created a gap for water, air, and critters to enter.  She admitted it was only installed for "noise" and will be removed soon.

Quote from @Jonathan R McLaughlin:

@Troy P. does seem fairly unambiguous :) But did they ever read it? 

I have a feeling they're perusing through it at some point today lol

Quote from @Richard F.:

Aloha,

You should look into a tankless heater of appropriate size. Newer ones perform much better than earlier models.

 Aloha,

I actually have a tankless in my primary and it's definitely nice for long hot showers.  The first world problem is that it takes about 60 seconds before the hot water actually makes it to you.  I know they're significantly more expensive to install, but definitely something to consider.  Thanks!

Quote from @Gene Cook:

Am I wrong or are you mixing "adjusted" income with raw home values? Pretty sure that in the last 30 years income compared to home prices has not diminished by a factor of almost 16 to 1.

Yes, that is probably what happened.  Good catch.