All Forum Posts by: Brad Jacobson

Hey @Brandon Montgomery, I agree with what @Michael Dumler in most part but I have found that there can be a significant gap between a 3/1 and a 3/1.5 or 3/2.  That second bathroom does make a difference.  The 1.5 vs 2 bath shouldn't make any difference at all.  

In my Ogden Utah market, an extra half or full bath can swing a rent by $100-300/ month.  Having a single bath unit also reduces your pool of potential tenants.  For that reason there are a lot of investors that will only do a minimum of two bathrooms.

Nevertheless, it's always a number's game!  Good luck!

Hey @Khandbari Rai, you're likely going to need to dump all of your profit from the STR sale into your next project to avoid capital gains so like @Zachary Cummings said, it'll need to be a bigger project likely.

There are small companies that specialize in 1031 exchanges so I would strongly suggest reaching out to a 1031 specialist before making your move.  1031s are tricky so make sure they give you their rubber stamp before you go under contract on your next move!

Hey @Hayden Wright, you've got this!  

1. I purchased my first within a few months of reading Rich Dad Poor Dad.

2. I was convinced it needed to happen, even if the deal wasn't incredible.  For me it was a house-hack and ANY house-hack is better than nothing.  Dividing your housing costs in any way is always a win.

3. Make yourself a "12 Week Goal" today.  If you haven't read the book "12 Week Year" do it, and starting today, give yourself the goal to finish the book and own a property in 12 weeks.  Start today by talking to a lender. Continue tomorrow by calling two agents.  Finally, make you first two offers by the end of 30 days.

3a. If you run into hiccups with financing, pre-approval, other things, you'll have to adjust your goal.  However, if you're continuing to call different lenders and different agents, you're going to meet very smart and creative people that can make a purchase happen in almost any scenario.

Good luck and let us now your success!

I second what @Kamil Baldyga said and would strongly recommend doing it in an LLC, especially if its a complex.

I've never purchased in Canada but I would assume you have some sort of title company or title agent that assists you in the purchase along with the lender. If you're using a title company or agent, he or she should be able to walk you through how to purchase the property in the LLC or how to transfer it over at closing if purchased in your personal name.

If you need assistance creating the right LLC, contact a real-estate attorney or if you're using tax planners, they might be of assistance as well.

Good luck and way to go on locking down a complex!!

If it gets you in the game, do it.  You'll likely visit the property very rarely anyways as long as you have a handyman in place! 

Hi @Lourdes Sanchez Wise,

When purchasing out of state, I like to call local property managements and have them break down the areas for me.  If you have a specific property or two in mind, it's easy to call a PM and ask them which property lies in a better area and where they like to manage.

Good luck!

Great question @Alicia Marks! I have two immediate thoughts:

1. Most new investors have an amazing opportunity to get into the real estate game by house-hacking.  The best part of house-hacking is that any deal is better than no deal.  If you're able to divide your housing costs at all, it's better than not doing it 100% of the time.  Even if you can't find your perfect house-hack, buy one ASAP and start building that equity and savings rate.

2. In my local market (UT), analysis tools like the "1% rule" are impossible to achieve.  Nevertheless, I continued to buy properties that didn't meet the standard criteria and found that all I had to do was invest from a position of strength (with good reserves) and sit on the properties for a year or two before they became incredible investments.  Properties I bought prior have up to $800/door more cashflow now than when I bought them.  They weren't money makers at first but have turned into the best financial decisions I've ever made.  

In other words, don't wait to buy real estate, buy real estate and wait!

Good luck to all!

Hi Jerrycan,

This is where things can get more complicated.  I would be sure to speak with a real estate attorney to make sure you have the terms of the lease dialed in and you're acting in accordance with the document.  Then with the attorney's green light, you can proceed with an eviction through the district court.

Good luck!
 

The money saving strategy that has made the biggest difference in my life has definitely been the house-hack.  Since I bought my first home in 2017, I've been saving an additional $1,100 and $2,000 per month by either having roommates (when I was single) or renting out a basement apartment (after I got married).  

By removing the mortgage or rent expense from my life, my wife and I have been able to live on no more than $2,000/month for years and have had a tremendous saving rate.  These savings have given us a huge head start in creating our investment portfolio.  

I've heard that David Goggin's book is great but I haven't read it yet.  Thank you for the recommendation!

I'm not familiar with "Think Again" so I'll definitely look into that one as well.  Appreciate the reply