All Forum Posts by: Adam B.

If you have to ask this, then you should not build your own custom home. I've been building houses for nearly 15 years and can tell you there are so many things that can go wrong that will cost you money that at the end of the day, you would have been better off paying a professional builder.

If you are dead set on building your own home, then maybe you could talk with one of those "be your own builder" companies and hopefully they give you enough guidance to make it worth while.

Good luck either way you decide.

If my intentions are to buy and hold, and I have $50k to invest would you seasoned investors pay cash for 1 sfh or use leverage and buy 3-4? If you do prefer using leverage, is there a certain % of equity you like to stay within?

Thanks for the input.

I could be wrong (and hope that others will either agree with or correct me) but if you are planning on doing business through your LLC, like getting loans etc... banks are more likely to loan your LLC money if it's several years old with years of tax returns. So, it seems that the sooner you form your LLC the better.

Also, I don't know if it's best for a CPA to set up an LLC for you. In Texas you can just do it through the secretary of state for cheap. I think LLC's are all the same... the real protection (outside your LLC) comes from some sort of umbrella insurance... But, again others hopefully will chime in as I'm not certain

You should have found your ARV before you purchased, but getting a realtor to pull sold houses within the last 6 months in that neighborhood will do it.

If you don't change the filters the primary drain line can get clogged causing water to build up in the emergency drain pan. If that goes ignored there could be huge problems. Plus as mentioned above, the harder your HVAC system has to work to pull air through a dirty filter the shorter life span it will have.

If you are planning on starting an LLC in the future and moving your properties into that LLC why wouldn't you just do this from the very 1st property? Wouldn't this help you "season" your LLC with several years of tax returns?

I know it's easy to say "I don't have a degree and look at me..." And yes, there are a ton of very successful people out there without a degree (my brother being one of them in the IT field). But I think if you are driven and motivated, which are both required to be successful regardless of education, why wouldn't you want to gain every possible edge you can?

I know college is expensive, but you don't have to pay $50k/yr. You can go to a public university and get out for around half that. You also don't have to borrow every last dime you spend while in college. I had several friends that would work 20-30 hours a week to help pay for everything. It took them 6 years to graduate but when they did, they only had about $10k in loans.

I graduated with a business degree and with some hefty loans (hefty to me at least). However, I would not change a thing. I got the job I have today because of connections I made while in college. I kept the job because I bust my butt and have a good work ethic. People say you can't learn work ethic and "hussle" in college, but if you go to a decent school you cannot graduate without these qualities.

I'm not saying use college as a way to "find yourself", but I do believe that you don't know as much as you'd like to think when you're 18 years old. What better way to develop into a young adult then around like-minded people that are pursuing higher education? There's something to be said for "birds of a feather flock together". If you want to be rich, hang out with wealthy people... learn from them. If you want to be educated, hang out with intelligent people. If you strive to be a RE investor, spend hours on Biggerpockets :)... you get the idea.

Point is, is that in general (these next statements are all generalizations) young adults that are in college are looking to better their lives. These are the people that will be called boss, the people that will operate businesses, the people that will have a higher quality of life. Would you rather surround yourself with these people, or skip college and try to work your way up surrounded by people that also skipped college because maybe they aren't driven like you are? Either way, you're going to have to work hard, so why not work hard WITH a degree?

I think the answer is obvious whether or not college is worth it. I'm not saying you cannot make a great living and have a wonderful life without a degree, but why limit yourself? I have never heard anyone with a degree tell me "I really wish I hadn't gone to college". You have your entire life to work... what's 4 years when you're still young in the big picture? Nothing! And, if you are financially smart while in school (work, don't party all the time, etc.) The ROI will be through the roof!!

Hey kyle, welcome!

Thanks for all the great responses. They are all very helpful.

I am concidering purchasing my first rental property and I have a few questions for you seasoned pros. I appologize if these seem like a stupid questions...

I am able to look on the mls to see what other propreties are ASKING for rent, but does that mean that is what it will actually rent for? I know if a house on mls is asking $100k, it will not sell for $100k, so by that logic it makes me believe that if a rental is asking $1,000/month it probably won't get that. Or does the rental market not work that way? Do you landlords out there get low balled on your rental rates? If so, is there an average % that you tend to get negotiated down to? Or do rentals normally rent for their advertised rate?

I am trying to remember when I used to rent, and I don't recall low balling my rent offer. I remember either paying the rental rate or looking else where... but that was like 10 years ago.

Thanks!