Hi my name is David and I’m new to the Bigger Pockets

[David Garza]

Hi my name is David and I’m new to the Bigger Pockets and I got a heck of a story is you got time.

Ok this is a long story (feel free to stop reading now). I’m in real estate investing by accident and trying my best to make the best of the situation. When my wife and I got married I started renting out my bachelor house in Frisco, Texas, a booming city north of DFW ($1500 monthly mortgage renting it for $2000 rent). We bought a house not too far away (with down payment from my mom ($20K)) and moved in together. Lived there 10 years there and planned on selling and moving to Katy. We waited too long and I guess interest rates scared off buyers. There is a need for rentals in Frisco so we rented the second house for $2750 with a monthly mortgage of $1400. We moved to my mom’s property 2 acres in Katy a boom town as well west of Houston. My mom gifted an acre, but without the lump sum of money we didn’t have a down payment to build a house. We did secure a loan (130k) to build a barn. I’m building an apartment in the barn so its half workspace and half apartment. The full intent is to live in the apartment for a few years and see if the investing thing is a sustainable option to save up and build a house. The apartment in the barn would then become a rental… If everything works. As a family we have no real debt, cars are paid for, I teach school, so our household income is average and we are fine with our jobs. Plus the management of the properties is fine even though they are 400 miles away.

And that’s all I know. I think I’m in a fortunate situation (I think) b/c many of the books I’m going through spend a lot of time talking about getting your first property. I guess the reason I’m writing this is bc I’m lost on how to make the most of this situation and not screw it up.

So what are my first steps?

LLC? Tax Advisor? Is the new apartment and barn a write off. How do I handle the book keeping and accounting? Any and all advice would be appreciated it. So thanks if you read all this and have some direction.

PS I’m so lost I don’t even know which topic to post it under. LOL