All Forum Posts by: Andrew Butler

@Tom Cafarella That is a great point. Thanks for your input. 

But now say for example, what if your lender requires 10-20% down? At that point what return on the equity portion would you recommend  striving for? 

Hello Everyone! 

I'm a beginner here just slowly learning so i don't ruin my life on my first deal, so thank you all in advance. My question has to do with running the numbers to valuate a potentially "good deal"

I've been reading about the 50% rule which makes great sense as a guideline. My question is about a downpayment, and how that should be factored into the numbers. i.e. if you only put 3.5% down and are cash flowing after the 50% rule that seems like a good deal to take a closer look at. But what if someone wants to avoid PMI and put 20% down? or possibly more? what % of cash flow would you suggest is a decent amount on the principle?

Say i find a single family home for $300,000 and put $60,000 down (20%). As a rule of thumb what is the cash flow % on your equity should you expect if you're following the 50% rule?

Thanks,

Andrew

Hello everyone,

I was just curious if anyone knows where to find any info on the historical sales price per square foot for residential properties. Looking for Utah's numbers. 

I'm just trying to learn more about market cycles right now in different markets. (I am a new guy and have not bought any properties yet)

I'm targeting the Salt Lake Valley mostly. 

Thanks in advance,

Andrew  

Thank you all very much for your responses and insight. That is good to know. @Hadar Orkibi, I will absolutely read Tax-Free Wealth right after i finish Rich Dad Poor Dad. I appreciate the suggestion. 

Hi everyone,

This is my very first post and i have a few questions. I just started listening to the bigger pockets podcasts and i am now obsessed. I love learning and trying to educate myself. It quickly became evident that Rich Dad Poor Dad was a top pick for a book so i'm instantly got it and got into it.

My question:

The author repeatedly states that you should "pay yourself first to motivate you to pay your liabilities with with the money left over from what you get" And one of the major incentives that he gives is that way you're not paying taxes on that money and losing it's earning power. My question is how do you structure this so you don't pay taxes on that money?

My situation:

I'm self employed, 1099 income, and earn roughly 300k a year. I briefly looked into setting up my business as an S Corp to cut down on what i pay in self employment tax, but my understanding is that I make too much to declare a small enough salary to justify getting well under the (I think it was around 127k threshold) <any advice here would also be appreciated. 

But long story short, if there is anyway to "pay myself first" by investing or in any form to lower my income taxes, i would love any advice.