All Forum Posts by: Bhaskar Nyshadham

Hello, like so many others here, I'm looking to get started in real estate investing in the DFW area, and am new to BP. I'm looking to buy and hold a single family property or a small multi family property. Some areas that seem interesting to me are Euless, Irving, Arlington, Grand Prarie, Frisco, Mesquite, and Garland. I admittedly have not looked around as much on the Ft Worth side, but Keller seemed pretty interesting to me. From what I'm reading here, Dallas is becoming less and less of a cash flow play and more of an appreciation play, with some exceptions being worse neighborhoods and multi family properties. I'm also just not seeing many solid multi family properties--I think the ideal property would be a 3 or 4 plex.

I'm looking to spend ~300k with 25% downpayment and am thinking as long as I can find something which is near break even or has small/slight positive cash flow, I'm good since the appreciation play is there long term.

Looking for thoughts/corrections/advice on above, as well as to connect with investors, relators (especially those specializing in out of state investment buyers), lenders, etc.

Thanks!

@Greg Scott Thank you for the explanation, that makes sense. My initial analysis failed to account for depreciation expense. 

@Matthew Mazur Thank you for your response, your suggested course of action makes sense.

@Mary M. Thank you for your input, it makes sense. And yes, I should reach out to a CPA.

@Greg Scott Good point. My main pro for it, is that at my income level, I think paying corporate taxes for the rental income with a C corporation would be less than paying it as pass through income i.e. personal income tax. Of course, this is assuming I distribute no dividend or wage to my self. I'd *think* this would be okay for me--tying up passive income wealth in a corporation where I am the sole shareholder seems reasonable in building my portfolio.

@Greg Scott, thank you for the input! Could I just *not* pay a salary or dividend to myself, as the sole shareholder?

I'm thinking about purchasing my first rental property to diversify my assets. I'm wondering if starting a C corporation, where I am the sole shareholder, makes sense. 

I know some downsides: double taxation as the corporations profit would be taxed and dividends/wages to shareholders/employees. Could I just not pay myself any dividend or wage as the sole shareholder (since I really don't need the payroll back as this is just passive income stored in a corporation where I'm the sole share holder)?

How would one procure a loan for the purchase of a rental property as a C corporation? Would this be a conventional mortgage or would this need to be some kind of business loan? 

On initial funding (I'd imagine I'd need this to back whatever kind of loan as downpayment): could I initially fund this C corporation, marking this seed funding as debt or equity (maybe the former is ideal in the event I want to distribute a dividend/wage back to myself from the C corporation?

As a (relatively) new grad and young professional looking to expand and diversify my portfolio, any answers or advice would be greatly appreciated. Thank you!