All Forum Posts by: Chad Duncan

@Aaron K. I see what you mean. I think I will primarily use real estate as my main value but with the framework of planning to facilitate the life plan for my clients. If I wasn't objectively cheaper than my competition, how do you think I should approach people? I am in the thralls of limiting potential conflicts of interest as much as I can.

@Aaron K. What do you mean by "offer" management services? I would just have to disclose both and any conflicts of interest.

Hey Everyone,

I am building out an asset management company (RIA or Registered Investment Advisor) with real estate as one of the main assets that I will manage (as a licensed property manager). My company will be a conglomeration of financial planning (goals-based, investments, projections, tax, etc, cash flow, ratios, etc.) and property management (leasing, maintenance, accounting, etc.). 

I have experience in both but am creating a company that I would like to see in my area, and I am wondering if there are other people out there that would see value in this. An example of my service would include full-service property management for those that might be too busy to manage themselves, as well as DIY management, focused more on the financials and analytical aspects and is less expensive. 

I would also take a holistic approach to ensure my clients understand the pros and cons of each investment decision (real estate primarily but also securities if needed) and how it all ties together. I have worked for several financial planning and investment management firms and have to say that there is a serious lack of service for people like us who use real estate as a primary income replacement retirement goal. 

Let me know your thoughts!

@Ramona Huot

American Standard. That's coming from my dad that has 30 years in plumbing. It's also great for rentals and cheap.

I did exactly what you are trying to do. However, I had the benefit of VA disability and working which barely made my income feasible to take out a VA loan for the duplex I now own. I don't know if you have checked in with the VA and tried getting a disability rating, but its worth a shot and I recommend every veteran go through that process. As well, look into banks/credit unions that tailor to Veterans, these can be a great source of financing.

Investment wise, house-hacking is still viable in Portland but you will have to have quite a bit of capital to make it work well. I believe most loans will put you at 20% down in this current recession (not quite sure with the FHA though). Something worth considering is to invest in an SFH with ADU potential, as the Portland Residential infill project might make it possible to have two ADU's per property in the future.

The biggest sign is construction, demolishing older buildings and erecting new ones, or renovation companies around. Another sign is hipster restaurants coming to the area. You can also contact the police department for areas they have seen lessened crime in.

One of the easiest ways to do this, and cheaply, is to create your own excel spreadsheet using a simplified personal income statement. Create two tabs, one for each rental as well. There are quite a lot of resources on youtube, articles, etc. online that you can easily replicate.

Your questions require professional advice from either a financial planner or tax advisor in your area. You are asking about a complex transfer via LLC, tax implications, and to be honest, anyone that is a professional in these respective fields would be a bit hesitant to give you advice over this platform due to compliance issues.

@Greg Scott - I do not currently live in the duplex. I do have a VA loan with a 100% cash out refi option, however I dont' feel very comfortable doing that right now.

@Theresa Harris - Yes, the difference is taxes. The cosmetic repairs are a new driveway, new landscaping, new plumbing in part of the house, new sewer line under the slab due to tree, removal of tree, renovation of the onsite storage units, and some concrete work for the walkways and the backyard of one of the units. I currently rent in a different city.

@Bob B. - I wouldn't consider the location A+, but there is some potential for it to be in the next 10 or 15 years. I did add the appreciation at 3% and it is much larger than previously calculated. Food for thought for sure. Thanks

I have an investment property in Oregon and am pondering selling the place, but am unsure of what would give me the largest return. Some of the facts about the property;

- It's worth roughly $400k, but I think I could sell it for $390k.

- I bought it for around $265k in 2016

- I owe roughly $250k

Essentially, after taxes, real estate fees, etc. I will net roughly $95,000. I put around $25k into renovations, and when I lived in or "house-hacked" the duplex, I gained that $25k back plus some by saving rent I would have otherwise paid elsewhere. The duplex itself has much-needed repairs that are coming due, mostly cosmetic, but still roughly $23k to get the property perfect. I currently net roughly $250 a month after mortgage, management, expenses, maintenance, cap ex, etc. However, after October, when the new tenants come in I should net roughly $450 a month.

I will be the only other duplex in the city I invested in and the market I am in has very little multifamily available and plenty of buyers left. For those who are analytically inclined, I concluded that the after-tax NPV for 30 years is roughly $130k using a 7% rate. That's only for the net cash flows of the rental income, so its more than what I will have in hand after selling ($95k)

What would you all recommend if you were in my situation? As well, I would either reinvest the $95k into some land to build a small home (roughly 6% fixed return) on it to become close to rent free again or dump it into the stock market as I am an investment advisor anyways and know it well (roughly 7%, inflation adj).