All Forum Posts by: Corby Goade

Don't be fooled by the returns you see on paper in the midwest. Many of those properties don't actually produce income due to turnovers, vacancy, maintenance and damages and you're lucky if they appreciate enough to keep up with inflation. Those properties are cheap for a reason. 

There are actually some solid markets with reasonable points of entry in upstate NY from my understanding. Better to invest in your backyard so you can learn and use your commissions for price reductions. 

I'd suggest you hire an experienced and well connected PM. Vacancies will kill your profits and then some, having a pro fill and manage your properties and make it passive for you will likely net you MORE, not less. Lots of new investors step over dollars to pick up dimes and this is one way you can focus on activities that have much better ROI.

 I would definitely be talking to a real estate savvy CPA- there are lots of armchair tax experts on BP and you can get really confident and incorrect advice. 

Have you considered just having one be an STR and using the loophole?

I don't love this question....it creates procrastination with new investors. There's honestly good, general advice above, but the answer to your question is really simple. 

Whatever works for you is "good cash flow."

If you are broke and trying to quit your job asap, the answer will be much different than what an acceptable answer would be for a professional investor who is a multimillionaire. People investing in Indianapolis have a far different strategy than people investing in SF. 

People house hacking have far different expectations than someone buying properties with cash. 

People with high risk tolerance will have a far different answer than someone who is risk averse. 

I'd decide what is reasonable in the market that you want to invest in and create a strategy around that- not what a stranger (who, very likely has never done a deal) says on the internet.

Best of luck- happy investing!

If anything, I believe this will have a tangible effect on inflation, which always makes hard assets more desirable. I can't imagine a scenario in which this makes anyone's life better, with the exception of values increasing. 

Welcome to BP! I've got a few questions and thoughts for you. 

If you are close to retirement and are accredited, it's safe to assume that you'll likely have some decent, taxable income rolling in during retirement. I'd be heavily focused on mitigating that future tax liabilty rather than directly supplementing that income. Ironically, high income earners can make more passive income through tax mitigation than they can through buying high cash flow deals in nearly every situation. 

I invest in Boise, ID and do quite a few BRRRRs, LTRs and STRs- varying degrees of success depending on how much equity we can force and the type of back end financing we can find, but the tax benefits are great and it's a rapidly growing market and Idaho is probably the most landlord friendly state in the nation. 

Do you have a team built in any other markets? Have a good CPA to help you strategize?

Oh man, I'm so sorry you have had such a bumpy ride. Those remote flips and high cash flow rentals are so tempting on paper, but they rarely go well in reality. 

My business is built around doing deals for out of state investors and my mind is BLOWN by how many flat out refuse to come visit, meet our staff or walk the property that they bought and we are rehabbing for them. We rarely have issues, but it seems like such a small investment in time and money to take one day to verify. 

Hope your next steps are much more smooth and you can take those lessons and turn them in to gold. 

 Oh man- welcome to self management. Sorry you are dealing with this, but the fact of the matter is, this stuff happens to all of us, but especially new, self managers. Professional tenants can smell an opportunity from a new landlord from a mile a way. 

The good news is, if you didn't do anything wrong and you have proper documentation, you don't have to do anything. Call their bluff and let them sue you. For $10K, they will have to hire an attorney and roll the dice on a judge. Most tenants wont do that, even if they feel they are in the right. They're just trying to intimidate you and see if you'll voluntarily cough up a few bucks. Tell em to pound sand. 

Very cool- awesome to see the ambition!

My two cents: get a job and HUSTLE right out of school and create some income and save up some capital. Even better if you can work for a property manager or real estate compnay. 

Start working towards a 5% down payment so you can house hack a MFH. That's 100% the place to start. 

Best of luck!

At the price point you qualify for, I'd be looking at a more landlord friendly state with more approachable price points. We invest in Idaho, probably the most landlord friendly market in the country, had good luck there. 

Best of luck!