All Forum Posts by: Adiel Arvizu

@George Gonzalez I am also curious as well. I would like to house hack a 4 unit building via an FHA loan. I just need to know if it is feasible, will it work on commercial real estate with 4 units on it, and will they factor in my student loan debt? So if anyone has answers for you hopefully they have answers for me because I want to get started on the whole real estate game.

@Tom S. Well I have no problem treating my first property as a business. I prepped all the forms and the like for almost every instance. But what about employment? Would employment be better under an LLC or would my personal name be enough?

Although, rent control makes things a problem since for the building I reside it is hard to make the necessary repairs because we don't have enough income flowing in. I mean two days ago I had to tarp the roof to fix a leak but the roof is in need of repairs.

Basically my overall plan is to own some nearby properties, make some cash flow, pay off student loans, and get my parents to sign off their property to me. After that I can collect some extra money from doing taxes and make the necessary repairs. My parents can still collect the rent and put it into their bank account. Once that is complete I expand and hopefully I can own and operate key properties in my area.

That is why I got into this. Also, for the first time in a long time my blood is boiling over owning something and doing the best I can. And it looks like if I continue this thread new people can come in there and learn. In any case, I will continue the questions I have since I would like to go into commercial since at first glance it looks like it will generate a nice amount of cash flow.

So in that case, for someone who is broke what are creative ways to finance that others haven't mentioned?

@Tom S. Alright because my parents who are landlords formed an LLC and my mother claimed it was so when they get sued they won't lose the building or something like that. Also, would not forming an LLC affect the amount of taxes I can collect or could I collect the same amount of taxes. Could I also employ people formally when not under an LLC?

@Tom S. So if I do not form an LLC can I still get conventional loans for commercial real estate? Also, since you also know about this where would be the best place to get private loans from barring friends and family? I want to be able to get a long term loan for the 20% down payment. Also, when would be the best time to form an LLC? Thank you for answering and if you also have any tips please let me know.

@Rosston Smith Actually the beauty of this space is that there is already a business running. Plus it is within walking distance from my place. And I'll see about using excel spreadsheets to run numbers. Otherwise, thank you for everything and if there is more advice about this business let me know. I want to fund the down payment of this whole thing without any money out of pocket so I know I will need to be creative. 

@Rosston Smith I get your frustration but some skills you should know how to do to save money are as follows:

1. Placing a door
2. Simple plumbing fixes
3. Placing light bulbs and the boxes
4. Replacing an outlet box
5. Knowing how to replace a light switch
6. Tarping a roof where it is leaking after it rains

For me I like to learn little things like that because over time it saves money. So don't be frustrated and just learn the little things and hire people for the big things. I hate painting as well because it is time consuming so just hire some professional painters. But if a lightswitch needs to be replaced or a door needs to be replaced then instead of wasting hundreds of dollars in labor costs, buy the stuff and do the repairs yourself. I guarantee it is easier than painting and it is great to be a handyman. Plus the ladies love a man who is handy so there is a plus.

Another thing I forgot to mention is to buy mechanical devices that can save you time and labor when you go to repair stuff. It may have a sizable overhead but the amount of labor and time these devices can save you is paramount.

@Rosston Smith What software do you use to calculate your expenses? Also, what is your opinion on investing in a property which has a commercial business and an apartment unit as a first property? I mainly ask because at least in my area it looks promising since the rent from the commercial place alone can pay the mortgage. Otherwise, the thought of real estate is surging me with some excitement.

@Rosston Smith And that is after all the expenses are accounted for right? That includes mortgage, repair, and the bills.

@Rosston Smith What would be the ideal starting cash flow to investment and expanse ratio? And I will add those to my list of questions that I need to jot down. Also, is a commercial property good to start out with?

@Rosston Smith Oh yeah no doubt. I saw some negative reviews for Biggerpockets but I knew it would give me a lot of value. Heck the Managing Rental Properties one is pretty helpful since it emphasizes treating ownership like a business. Also, any tips on how to approach buying my first multi-family property? I am even looking at a commercial property that is within walking distance from my place and I'm going to see an agent about it. So any tips for that? Otherwise, I will go buy that book and let's see how it all goes. Thank you for everything so far and it is great to see this community strive to help others.