All Forum Posts by: Ron Trinh

@Bill Brandt will definitely be worth asking! Thanks Bill.

@Paul Bame gotcha. I am thinking this might be the only way if the.

@Nicholas Covington - Yup, I completely understand the premise of not underwriting her CA income. We are currently renting so the second home option is not available to us either. From what I am hearing, it looks like we need to rent first when we get there then. 

@Theresa Harris I do not believe my income will qualify as I am self-employed with less than 1 year of history. 

Allan - The lender is requiring 30 days paystubs to qualify my wife's income for the mortgage as they cannot underwrite her CA salary. This means she has to get a new job (works in a lab) in CO before we can close on a place. Which also means we would need to live in CO so she can work 30 days before we can buy. And that means we would need to rent before we buy. 

I am wondering if there is a way around this so we can avoid moving twice. Is it a matter of calling enough lenders until we find one that can use her CA W-2?

Hi BP people!

My wife and I want to purchase a single family home to occupy as our primary residence in CO Springs. We are from San Diego and are wondering if anyone has been able to close on a property out-of-state before physically moving there. We would like to use FHA or low down payment conventional financing, so purchasing as an investment and then moving there is not ideal (or legal based on mortgage fraud I would think).

I spoke with a lender and they were saying they cannot loan on CA income. Is there a way to close on a property before we move so that we are not having to move twice (once in a temporary living situation renting, and once when we close on a property)? 

Thanks,

@Bhaskar Pusuluri - Wow those are great terms! Grats! Wouldn't work for me unfortunately as I am a CPA but amazing for other doctors out there.

@Jay Hinrichs Sounds like I should've become a Doctor. Sorry Mom and Dad. 

@Nicole Escobar That's a bummer! I hope you find something that works for you.

@Nick Foster - Appreciate your two cents Nick! And yes, we gladly pay the Sunshine Tax having traveled to many other areas of the globe. If I go the personal residence route, then I would likely go back into practice and continue saving. This seems like the "safe" bet and I am very comfortable with taking a larger risk than that currently. 

With the clients I used to work on, I saw a lot of developers start out with partners, etc. when getting into it full-time. Although it is true the wealthy almost always have real-estate as well.

@Michael Oliveira - A break-even deal in SD would be awesome. If we go the personal residence route, we would also be looking for something that breaks even (although living there). I have a close friend who is having success with a single family residence where a granny flat is being AirBnB'ed in the backyard. Maybe you can do that too? I just love the endless possibilities REI gives us.

And that's great! I hope your consulting business goes well! Given the situation I am in, I am also seriously considering finding a partner I can put in the work for (work for free) to learn the ropes. I think I can add some value when it comes to taxes/accounting or just straight sweat equity (fairly handy as well). 

Hi BP community,

Really wanted to get some feedback from anyone that has made the jump from full-time job to full-time real estate investor (before having the passive income) or anyone that just may have something to say about this.

Some background - I spent the last 4 years working in the field of real estate taxation as a CPA. During that time, my wife and I have built up a decent nest egg of savings (roughly 70k including retirement plans) and I decided to leave that career to take some time to think about what I want to do next. I was often pushing 70+ hours a week during tax seasons and have burnt myself out a bit. My wife works and her salary alone is enough to support both our expenses. We currently rent @ $2,250/mo and do not own any real estate yet. Also, my wife and I do not have any debt other than minor credit card debt. Our overall goal, like many on BP, is to achieve financial freedom and retire (i.e. not working traditional 9-5 jobs) in the next 5-10 years.

We both want to get into real estate investing and after much thinking, debating, and late night discussions there are a few decisions we could use some advice on.

1. Buying a personal residence in San Diego and creating granny flat to rent out vs. continue renting and buying real estate out of state (if we go this route, we are after immediate cash flow).

2. Depending on what we decide to do in #1, then should I find another job or just go into REI full-time? Will need the job to purchase the personal residence in #1.

I do not mind working again but would like to do something less demanding on my time so that I can focus more on REI.

Any advice is appreciated.

Thanks!

@Kyle R. The issue you bring up seems to be a timing issue. That just means next year you would pick up that expense you paid in January 2019 for December 2018 Q4 taxes on the 2019 tax return instead of 2018. Then in December of 2019, the same timing issue occurs when you pay your Q4 taxes in Jan of 2020 instead of December 2019.

If you want to rectify this issue, you could pre-pay the Q4 Jan taxes in December to get better matching of revenue/expense.