All Forum Posts by: Annu Zer

Thanks Taylor, since I am seriously considering out of state, was expecting to use the forum and followup with connection here to carry it further.

Natalie, I am open to Oregon, around university hubs and metro portland metro area, but looking for positive cash flow and working with a management partner. I will followup with you.

Hi all,

Long time lurker, first time posting about investment. I am based on oregon, with a SFR home. Looking to invest into MFR 2 to 6 units, Class B or above, with positive cashflow, expecting CoC of 5% or above. Looking to invest in neighbourhoods with good tenants and looking to partner with a good agent/ management team for a passive workflow. Keen on Oregon, washington but open to out of state, based on the deal. Hoping for long partnership as expect this to be the start on MFR. So far investing a lot in stocks, so can answer if any questions there, not a doom sayer, but let's just say expecting a correction there, and personally looking to diversify.

One word answer, Umbrella, okay should be two, Umbrella Insurance. LLC, series LLC while interesting concept in Real Estate world, but unless you follow proper guidelines, you will not be able to use them to protect anything. Also with LLC you will need to get commercial insurance, and also for loans, many banks might not give loan for an LLC, if you still put your name there, you will be on the hook (searching for piercing the veil). And even when done right, they only provide inside out protection best case, and not outside in(or atleast not cheaply).

You will also hear about anonymous LLC, out of state LLC(like Wyoming, delaware), all kinds of complicated stuff, which will result in annual costs, besides all the extra work, and all this will cut into your cash flow.

Umbrella insurance, is simple, easy to get. Once you are doing big investments and especially looking to have partners, definitely go for it, until then, my $.02, you do not need one. Also try not be slum lord and do everything in writing.

What is your emergency fund? Do you have any high interest loans? House hacking will be a good option to consider, as you can live in part of the property, get a primary home loan, while rent part of it.

Justin,

If you are looking for passive income, look into stocks/bonds. After having rentals, and realizing they are not really passive, spent time looking into investment and it truely is passive income, if you do index based investment. You can look up 3 fund or 4 fund portfolio or look for boglehead guide for investing(from the founder of Vanguard).

Even something like a REIT is great option https://investor.vanguard.com/...

I can add more, let me know. Also with REITs for e.g., you can also use the 20% QBI normally used for rental income.

Brandon,

I will recommend going to some nearby local stores and dropping a flyer there as well, and do not forget craigslist. 3 weeks should be enough time to get some hits. Even though you have a management company, as did we, we were able to focus a lot more time for the home we were renting out, while the management company with more clients was time slicing(understandable, even though we did not like it :-)) .

Also not knowing anything about the area you are in, what is the average vaccancy rate? As it might be good to have expectations set correctly. This link might help https://www.biggerpockets.com/...

Wish you luck...

@colby how much investment is needed for the MFR, I am interested and looking, my went to uni at Tuscon so we have some idea about the area, but moved to OR 8 years ago

So you will be buying a new place for yourself? Or you will like to rent this one, while renting a new one and hence subsidizing your rent? If you can buy a new one, you will have help paying your new mortgage, but depending on how old your current home is, there will be repairs etc expenses you will need to plan for as well, rough estimate 20% of income a year.

in addition if something major like roof needs updating, that will cost more

bow if you are buying another home, again there will be costs besides mortgage, you should plan for.

Either way, if you can afford it, makes sense to rent out, as you are creating a revenue stream, but be diligent on not counting entire difference between your mortage(old home) and new rent as income, if you can live with additionol 20/30% of income spent on repairs etc., go for it.

Safer than syndicates( which will need a lot  more work to not lose your money), one other option, which is completely passive, is REITS,  e.g. https://investor.vanguard.com/...