All Forum Posts by: Alan Phan
Alan Phan has started 4 posts and replied 5 times.
Post: Purchasing 2nd home as an investment for parents - suggestions/advice needed
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- Votes 1
We purchased our home during covid and we have a chunk in equity, which we do not want to tap into. If we were to sell, we're looking 1.2-1.5mil.
Our situation is we want to purchase another property for my parents to live in - it would be 600-700k condo. We do have enough for 20% down payment. Because this will be considered a 'rental/investment' what do I need to know? Should I approach a broker or lender?
Post: Advice: Purchasing a Home for my Parents advice
- Posts 5
- Votes 1
Situation: My wife and I purchased our first home, new construction in 2021. We want to purchase my parents a home to move them out of their current place where they are renting (both parents are in their early 70's). We would want to make my parents the 'renters' and we as the landlord.
Question: In terms of taxes, is there something we should consider when renting to our parents? What kind of tax benefits would we get as rental property owners. Will this affect their social security? Any advice is appreciated as this will be our first 'rental' property we are considering on purchasing. Thanks!
Post: First Time Homebuyer 2 years ago - ready to invest, now what?
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- Votes 1
Quote from @Mike Gordon:
I only have LTRs so I can't give you much advice on STR, but here's some general advice on getting a first investment property that I wish I knew:
- Look in places where it's easier to rent, even if it costs a bit more. I have two homes in one city. One is in more of a suburban area and one in a more urban area of the city. The urban one rents more quickly and has a larger pool of qualified renters. The biggest cost isn't repairs, it's vacancies.
- I'd suggest not to go negative in cash flow. Start at even at least. You don't want to have to pay out of pocket each month when you only have 1 investment property.
- Consider paying a bit more for newer and nicer at first, it's easier to manage
- Managing your own property for LTR isn't that hard if it's within driving distance. For you, that could mean Las Vegas where values are dropping (depending on your goals)
- I'd suggest not buying your first investment in CA. It's a pretty tenant-friendly state. Not to say that it's bad to invest in CA - returns in CA can be really good but you have to be ready for the headaches. CA property never goes down over the long term so it might be good for a 2nd, 3rd, or 4th investment.
- If you can move out of your current home into a new one, that's a great way to build a portfolio - by leaving a trail of homes.
- Establish a conservative reserve fund at first. I would keep $10k in reserve for properties until I have accumulated enough to pool the reserve funds.
- I don't think you need an LLC at first for one or two investments. Buy insurance instead.
I own rentals in CA (Torrance), Tucson, and Louisville.
Thanks for the info!
- To not go into negative each month, that means i'll have to put a bigger down payment >10% to lower my monthly mortgage rate for the rental and increase the rent correct?
- What are your thoughts on turnkey properties/company thats out of state?
- How did you start your first rental?
Post: LTR and Return on investment, Is my math right?
- Posts 5
- Votes 1
Looking to purchase a 2nd home for LTR.
Thinking of a 10% down, monthly mortgage is around $4,300; however, it looks like rent around the area goes for $3.3k-$4k max - does that mean i'll have to eat up the $300 monthly OR put a higher downpayment to lower the mortgage thus pocketing a higher profit? Am I missing something here? Thanks!
Post: First Time Homebuyer 2 years ago - ready to invest, now what?
- Posts 5
- Votes 1
Hi all, been scouting the forums for a while and decided to ask a question myself.
Wife and I purchased our first (primary) home Jan 2021 in Los Angeles with interest rate of 2.6%. We're mentally ready to purchase another property as a LTR or STR (unsure at the moment, STR catches our eyes but not confident on COC return).
What should we know PRIOR to purchasing the 2nd home as a real estate investment? What's something you wish you knew before purchasing your 2nd home? Anything you'd do different? Thank you so much!