All Forum Posts by: Andre O.

Maybe my communication was poor. Should I try to remake the thread and make it more brief concise and clear? Hoping to get some perspectives from the community. Thanks!

The above image is to get a clearer picture on finances on the below scenario.

Plan: 

-Purchase 3/2/1 car garage townhome. Adhere to strict screening to provide great housing for two suitable tenants and myself.

-Continue working on business and creating/building other projects.

-12 months income provides for +/- 10 years of runway capital. Maybe 15 or 20 at the above annual expenses/living scenario.

-Business remains operational, project continues to be built, lifestyle remains relatively the same. (Food is cooked and delivered to home, beach is a 10 minute drive).

-Within 24 months there is 20-40 years of runway to work on/continue creating whatever I desire in life. If project begins taking off, may perhaps no longer need to rent to roomates and still have a long runway.

-Allows for placing big bets and aggressive investing in future ventures. If they go to 0 it’s really not the end of the world. 

Assuming the above to be the worse case scenario it’s not particularly a bad life. At some point a wife and kids will be desired and that changes finances a bit. It would look different, but I strongly believe it will be manageable.


This all looks good on paper. But what am I missing in reality? What counter arguments could you make to my strategy? Please help poke holes on the plan to provide for a better vantage point. Needing better information if my assumptions are off. Thank you!

Hello BP,

I will be purchasing a 3/2 condo in South Florida with cash in the upcoming days/weeks. What is a normal percentage relative to the purchase price of the unit that is owed to pay for closing costs? 

I would also like to point out that my decision to not finance at these current low interest rates will not change. Please let’s stay off that topic as I am not looking to build wealth but reallocate capital. 

Thank you for your time!

P.S. Does anybody have a link to a post or link that has a detailed checklist for due diligence for condo associations? (Reserves, 40 year inspection, rent to owner ratio etc)?

Let’s say you own a business and bring in 250k profit.

Can you purchase a real estate investment property (residential not commercial) in cash and effectively pay $0 in taxes instead of 32% from the business side?

The property would absolutely be used for business purposes if required as well as rental property.

Can you take full depreciation on rental property as well as deduct maintenance, repairs, upgrades if you are renting out two rooms and living in a third room oaks primary residence? Are property taxes and HOA tax deductible since they are expenses

Looking to purchase a 3br/2bath condo in cash and not pay any taxes on whatever is leftover from renting out two rooms after all expenses are paid (aka deferring taxes and 1031 when necessary). Thanks!

Thanks for the reply @Brendan. The extra $900 per month added to the 1800 to make 2700 assumes that we all have to live somewhere and pay rent. Am I thinking about this incorrectly? Assuming all 3 rooms were rented for 2700 you’d have closer to the 9% return. Taking into consideration this would be ones first property, living elsewhere would still yield an expense and so I am accounting for this money saved into the above equation. 

As far as I understand about the condos in South Florida, you are really only paying for HOA and property taxes if the place is free and clear. There is always a risk of getting hit with a special assessment however. Vacancy as you mentioned, was not accounted for and neither were repairs. So the return on investment is looking to be somewhere closer to 7% taking those into consideration.

Still makes more sense to me to take this route which then allows one to be extremely aggressive in risk taking and investments.

Hello everybody. I understand the concept of controlling properties to build wealth and the benefits that come from finding a deal and using the banks money. Given you had 250,000 liquid why wouldn’t one:

1) Purchase a 3 Bedroom 2 Bath Condo

2) Rent out two rooms for 900 monthly each 

3) Take the third room “effectively removing your rent payment you will need anywhere”

Result - 2700 x 12 = 32,400 minus 10,000 for HOA and Yearly Property taxes. This leaves you with approximately and essentially 22,400 liquid profits per year. Plus peace of mind you own the place free and clear. That's effectively a 9% return on your money, and now you can aggressively invest your income from your business and this extra money with really no risk at all. You have the freedom in life to start another new business and can take your time to build one.

What am I missing here? This plan seems like a no brainer. In the future with a wife and family the finances change a bit, but the peace of mind of even renting the whole thing out which finances a house with the future family seems like a better decision than to bank on extra returns. Thoughts please?

Hi @Jamel Hamka, I am from south florida and would love to connect!

Thanks for the video!

Hello everybody this is my first post on the BP forums. I started a business during my last year in college of which I just graduated this past December. I am needing a ~300k loan to invest in a Duplex in order to rent one side, while living in the other side and renting one room to a roommate. This will allow me to virtually pay zero for PITI. My concern is that I have no income tax as I was a student for the past 4 years.

We have not yet filed my taxes for 2020 but I believe my corporation is going to give me a salary of about 30k, with a ~50k distribution pay since 2020 was my first year in business. (My accountant is going to finalize these numbers and they may be off). This will be my only proof of income but it won't be done until months from now. All I really have to show (if it applies?) are bank statements of 15-20k monthly deposits which are profits from the business (after all expenses were paid).

Will I be able to get financing from a bank or credit union? I don't want to waste my time and theirs, as well as them pulling my credit and dinging me with a hard pull. 

I am completely debt free, 770 credit score, and am looking to put 20-25% down on a Duplex in the 400-500k price range. I'll need an additional 300k as a loan and want to get started immediately and not wait a year or two. Thank you!