All Forum Posts by: Brooks Rembert

What gives? We found a VA foreclosure, put in an offer and that day, the selling agent calls my agent and asks for highest and best. We oblige, then two days later get a note from VA that our offer wasn't accepted, and an email from the selling agent that none of the offers were accepted.

The property had only been on the market for three days. I'm ASSUMING the VA is going to let it ride for a while longer, but why go H&B, then shoot everyone down?

Congratulations! I haven't been that prolific. We are making about one or two per week, as I'm not able to devote as much time to scouting out prospective houses as I'd like.

Hope they work out for you.

@Tom Schmoetzer 

I'm 40 and just getting started in earnest as well. It is absolutely never too late to get started. I have really begun to see just how powerful of a wealth builder real estate can be. My goal is to have 10 rentals in the next seven years, which on top of a military retirement should leave my family and I fairly comfortable.

Keep up the hard work and best of luck.

I don't really calculate the "savings" of interest or depriciation. There are expenses that will be deducted off your income taxes.

As an example, my wife and I own a rental that is cash flow positive, but it is an expensive home, therefore our mortgage interest in quite substantial. Additionally, since it was a more expensive home, the depreciation is quite a bit a well. The IRS let's you depriciate it over 29 1/2 years.

So, although we are cash flow positive, because of the mortgage interest, deprecation and other expenses, we show a loss every year, which is deducted from our taxable income annually.

I hope that answers your question.

@j scott

I love your idea of the .pdf scan of the check and just type in new data. Very smart

Cal,

Our primary residence will be paid off when I retire, so BAH will be a wash.

The plan is to have about eight houses (about one per year) by the time I retire.

I suppose the saying holds true that you make your money on the purchase price. If we can negotiate good sales prices that allow for good cash flow with a 15 year mortgage, then WORST case scenario, we can simply refi to 30 year mortgages down the road if we want to increase cash flow.

Colleen and Richard,

Great advice. I definitely see the benefit of a 15 (our primary residence is a 15). I am eligible to retire from the Army in seven years, and my goal is to have enough cash flow to equal what my retirement pay will be (50% of base pay), thereby creating (essentially) a 100% of base pay retirement.

My concern is that if we are buying properties on 15 year mortgages, DTI may become an issue and cash flow won't be where I'd like it to be.

My wife and I are under contract to purchase our first "on purpose" rental property. We have a rental property in Northern Virginia, but that was due to a transfer and we chose not to sell in 2010 when things were still a little rocky in the market.

Fast forward to today and we're ready to fire up an honest to goodness real estate business, but we're running into a bit of a disagreement on whether we should go with a 15 or 30 mortgage.

I'm all for the cash flow and using extra money to pay down principle more quickly, yet have a buffer when things arise. She simply wants to get it paid off more quickly, which I totally get also.

We are getting a good price, so the positive cash flow will either be approximately $500 vs. $300 per month.

Maybe the compromise is to go with a 20 year...I'm not sure. Has anyone had this discussion with their spouse/partner and what was the solution?

Hi Alyssa, 

My wife and I just set up an LLC for the same reason down the road here in Williamsburg. As explained to us by our accountant, the LLC will simply be a "pass-through" organization where end of year profits or losses pass through to your personal tax return.

The primary benefit of the LLC is for liability should you be sued for whatever reason.

Hope that helps. 

Brooks 

David,

I've started a real estate business myself recently and I set my LLC up before even looking for my first property.

In Virginia, setting up the LLC is straight forward via the State Corporation Commission's website; no attorney needed.

My CPA advised to immediately start keeping receipts, records, etc. Something as simple as driving around looking for homes with a real estate agent is deductible mileage, etc.

Good luck and I hope this helps a little.

Brooks