All Forum Posts by: Andrew Flora

Thanks Brandon, can you point me towards where you found that information or copy a link here or something?  I haven't found anything saying the sole owner of a property cannot manage it himself/herself without a brokers license.

I pay a premium when I can get seller financing so I think this is a fair deal based solely on the numbers given.  I would certainly get a thorough inspection done and a quote on the roof so you know what you're dealing with there.

I would also try to negotiate the price down a bit, do the math to figure up the sellers additional revenue from interest as your negotiation leverage.

I also always ask for delayed financing for 90-120 days to let you build a reserve account and get ahead of the ball.

Happy hunting! 

The only time I do that is when they set up automatic payments.  Going through twice the amount of mail is not something I want to sign up for.  But when people pay me weekly or bi-weekly they seem to keep up better than my tenants that pay monthly.

Awesome progress!  I would keep painting to add fuel to the investing.  Eventually add an employee or two that you can trust to run your painting operations allowing you a little more time to focus on real estate.  Eventually sell the painting business and run with it when the timing feels right.  There's many factors in play and depends on the individual and their risk tolerance and goals.  When the timing is right don't be afraid to jump!  Your young!

Sell the car.  That hunk of steel is holding you down like a massive boat anchor.  Get rid of the car debt and increase your income.  With no other debt and a higher income you will be ready to jump into a 2-4 unit house hack and then you will be off to the races.  In my opinion Auto Loans and credit card debt are the two things to avoid like the plague if you want to achieve financial success.

I have learned a lot here and I appreciate everyone's help.  Regular depreciation and expenses will likely offset my income for the next 3-5 years.  I also have a W2 so I don't believe I am a "real estate professional" at this point in time.  What I have gathered here is that I would not benefit much from a cost segregation study now but potentially would if I did one in 5 years or so when I have net taxable income to offset.

I worry what the laws will be on bonus depreciation 5 years from now.

I think I am going to hold off on it for now.

Hello all,

As my portfolio grows I'm looking to become more efficient, especially in the realm of tax strategies.  I have heard of cost segregation and bonus depreciation and I have a base level understanding of what they are and how they work but I don't feel real confident on how to properly utilize them efficiently.

For example, I'm under contract on a 42 unit deal and a 40 unit deal both set to close about 2 months apart, these will be long term buy and hold properties for me.  Would I benefit from utilizing a cost segregation study to take bonus depreciation on these?  I'm confident that with the property improvements and regular depreciation I will be able to show a loss on paper in the first 2-3 years regardless.  

I would also like to know why or why not so hopefully I can learn something.

Thanks!

@Jim Biggs I wasn't a feasible buyer for it so I didn't make an offer. I forwarded the deal to several investor friends and a close friend of mine bought the deal for $1.7M. He has since been doing some rehab and has raised rents from $400 to $595 and is operating at 0% vacancy. He will be spending quite a bit on rehab over the next year or so but is looking at creating about $750k in equity and a great cash flowing asset. My money was tied up with a 40 unit deal that I will finally be closing on in a couple weeks and my friend promised me a nice steak dinner haha.

I’m young and trying to add units so I’m pinching EVERY Penny!  I currently hold roughly $3M of cash flow positive long term rentals(about 75% leveraged) and I drive a ‘97 Ford Ranger with 130k miles picked it up for $1,000 cash, it’s ugly but reliable and gets about 30mpg.  Probably going to focus on paying down debt to a safer number before I upgrade.

I would go ahead and start networking with other local investors.  Work two jobs until you can save up $10-20k, you should be able to do this in a year or two.  Look to buy a good 2-4 unit to house hack with your first investment, you should be able to do this with 5% down.  Stay away from all debt unless it is a cash flow positive investment property.  No credit card debt, no auto loan, just cash flowing real estate.  From there the ball is rolling and you will see momentum with time but it’s a slow start, so be patient. 

If you can't wait and be patient then REI probably isn't your best avenue. Put the $1,000 in a low cost vanguard index fund and add $100/week to it and you will have a healthy retirement in your late 60's.