All Forum Posts by: Anderson Bigate Nogueira

Super helpful @Josh Young, thank you!

I appreciate your perspective here Josh! I want to better understand your point on HELOC: current rates are high, so taking a HELOC for buy a property (long-term hold) sounds like a risky move (hence the idea to sell the residence and use that capital to purchase investment properties)... I'm probably missing something here, appreciate if you can elaborate.

Thanks @Account Closed! Yes, I completely agree with your comment, for a lot of reasons... reserves, try the model, market swings in 2024, etc... 

Looking for strategies in this current market that I haven't thought about - WHAT WOULD YOU DO? Here is the case: still have my W2 job and the goal is to replace it with passive income from real estate. My residence has about 83% equity, so I want to put that "dead equity" to work, so I am considering selling the house, go live in a rental and take out the equity to invest in cash-flowing properties. Hypothetically, let's use these numbers:  Value of the house $1.2Mi on 10y mortgage with 2.25% rate, let's say net equity is $1.0Mi ==> Planning to sell it, go rent a smaller house and invest that $1Mi. My though process (using rough numbers) let's buy 10 properties with $100k down each (25% of $400k) and assume $500 average free cash-flow/each, $5k month and $60k/year vs $1mi principal invested = 6% Cash-on-Cash return. Slightly above inflation, and let's say in 2 years rates will go down 200-300 basis points, I refinance and increase cash-flow, while is building equity over time.

What strategy would you have? What advice you would give me?

Super thanks BP community for all the answers and tips above, super helpful! Definitely will use some of these advices.

Hello BP community! Want to get your opinion on what is the best strategy for this scenario:

- Buying a duplex in Dallas area with tenants on both sides (not transacted yet)

- They are living there for +5 years, and currently on "month-to-month".

-Rent are fairly below market (-30%), true the property need some love, want to upgrade the units and move up the rent

- Assuming eviction is the way to go after purchase (if other options feasible, please let me know). Give them some notice and time to prepare to move out, then upgrade the units.

QUESTIONS:

- How I can best position myself to run these evictions to upgrade the units?

- What could/should I negotiate upfront with current owner on that regard (if anything)?

It might have other solutions I'm not seeing... appreciate any insights on this scenario - thanks in advance!

Hi @Russell Goldenbroit, how are you? I have to say it.. I'm not a CPA, just sharing my own experience as real estate investor: there are several ways you can reduce your tax burden with real estate investments, and given the example above (Doctor), I recommend you research on "real estate professional status" ... that will reduce your taxable income from a W2 job. There are tons of content about it, including this BP podcast: 
How to Obtain Real Estate Professional Tax Status (biggerpockets.com)

Again, not a CPA or Tax Advisor. If you need specific advice, look for a CPA with experience in real estate investing.

Hi @Mark Johnson, how are you? I think it also depends on how large are the syndications that you are doing. Different solutions for different stages of the business. In large multifamily (>100 units) syndications, I see a lot of SyndicationPRO and seeing a new entrant called Cash Flow Portal (excellent tech support services) and they even created new features based on feedbacks we gave. 

Good luck on your search!

That is just PHENOMENAL that you @Ying St.Cerny is starting young. If you stay on course, this will play tremendously at your favor... congratulations for your decision on doing REI!

There are hundreds of different ways to invest in real estate and all of them are valid. I've started doing traditional long-term rental of single-family homes in 2005, and only in 2020 I have discovered multifamily syndications, since then I dove head on, switched my investments towards large multifamily syndications (>100 units) and currently invest in 1,220 units (60% of it as General Partner). With that I am saying you should research and learn about different ways to invest in real estate, but please include large multifamily syndications on your portfolio of options - I wish I have learned about it at younger age.

I'm open to chat more about it if you want, just DM me. Wish you all the very best on your journey!

Hi @Chris Noles, I agree with others above that $120k might be too low for MF, but another thing to consider is to invest as LP (limited partner) on a large multifamily syndication (passive), especially as you are new parents and rightfully so don't want to devote much time to REI at this moment. If you go that route, choose your syndication carefully, look for groups with minimum +5 years' experience on doing it, groups that have had full-cycle deals, and have done other deals on that market you are looking for. Pick Markets with large unbalanced demand x supply and large pool of jobs. I've found the table below very useful - I hope that helps.