All Forum Posts by: Andrew Coulter

@David Katz thanks for posting. As someone that is very actively looking into exactly what you are doing, it is good to hear real life examples, good and bad. I would be curious how your talk with REI nation goes. I agree regardless of who's fault that is a lot of missed rent very early in your journey. Hopefully this is a fluke and things will begin to turnaround for you.

Excellent post! Many of the topics here I have been contemplating myself. It sounds like you need to be extremely careful when vetting Turnkey companies. There are legit ones out there but there are many more that seem shady at least. One thing in particular I have been seeing is "Turnkey" means different things to different companies. There are some companies that are truly Turnkey (purchase, renovate, sell and manage the property in house), others are just marketers for flippers (advertise, sell and provide management but not in house). Some purchase, renovate and sell the property but then turn it over to another PM company. There are others that try to be a little bit of both. All of them say they are the most successful. lol. I haven't settled on one in particular myself but I have definitely came across some things that don't add up to me. 

Turnover is one area that I have been wondering about. So thank you @Sachin Amin for providing real life examples and numbers from personal experience. 

I don't know all the answers but threads such as this one definitely help to paint a better picture.

Can anyone involved with investing in Memphis tell me what I’m not comprehending about Frayser? Or even Raleigh for that matter? Why are these two areas so attractive for investors? The only positive I’m able to come up with is the low cost of entry. From what I have gathered so far, the area is D class at best. Cash flow doesn’t seem that great from what I can tell. With conventional financing it seems like 200/month give or take are the going deals. It doesn’t seem like there is any appreciation. Possibly even depreciation. So what am I missing!?

I have heard of several successful individual investors and Turnkey providers operating there, so I must be missing something?

Those that do invest here, what is your plan for exit if you ever need to?

Thanks

Can anyone involved with investing in Memphis tell me what I’m not comprehending about Frayser? Or even Raleigh for that matter? Why are these two areas so attractive for investors? The only positive I’m able to come up with is the low cost of entry. From what I have gathered so far, the area is D class at best. Cash flow doesn’t seem that great from what I can tell. With conventional financing it seems like 200/month give or take are the going deals. It doesn’t seem like there is any appreciation. Possibly even depreciation. So what am I missing!?

I have heard of several successful individual investors and Turnkey providers operating there, so I must be missing something?

Those that do invest here, what is your plan for exit if you ever need to?

Thanks

@David Hutson curious what the exit strategy would be with these homes? Do you think these will need to go to other investors or would home owners be interested if you ever decide to sell? I haven't visited to check out these neighborhoods yet but it sounds like the area where MSHB properties are found are mainly rental properties. Does MSHB assist with the sell of these homes if investors are needing out for whatever reason? Is there a location to find MSHB homes being sold by current owners? Thanks!

@Matthew Radniecki @Daniel Hyman

Thanks!! Got it on kindle now. Off to reading!

Think this is exactly what I was looking for.

@Basit Siddiqi @David M.

Good information guys! Thanks for replying!

@Steve Morris thanks Steve! I would certainly consult a CPA before making any decisions. I’m mainly trying to learn the basics so I know what to ask about when that time comes.

Hi All! As a newbie one topic that I’m really trying to wrap my head around is the tax benefits of owning passive real estate with a W2 job.

From my understanding there are various areas where tax deductions, write offs and depreciation can become an advantage.

Some questions I have are:

Is there any benefit to starting an LLC when it comes to tax write offs and deductions over keeping properties in your own name for the benefit or conventional loans?

In what ways do OOS investors use write offs throughout the year? Can you write off travel, hotels and meals when you go to explore different markets or look at potential properties? Does this only apply when you are going to visit a property that you already own?

What about if your going to meet or vet Turnkey providers or real estate agents?

Does anyone write off home office, internet, cell phone, etc if you are passively investing in addition to a W2 income?

From my understanding you can depreciate your properties over 27 years. You can also deduct PM fees, repairs and mortgage interest. Am I missing anything else here?

Where do you find a CPA in tune with REI investing? Are they local to you or virtual?

Thanks all! Hope this post will help others as I know it will me!

@Joseph Schweizer care if I send you a DM?