All Forum Posts by: Chad Kinsley

Can you claim the same deductions in an LLC as equal partners vs. an LLC by yourself? I didn't think an LLC with a partner would limit what deductions I can have but was told recently that you can't claim the same deductions. Any insight would be appreciated.

I have listened to all the chatter on here for months now about Cape Coral and currently am supposed to be closing on a lot next week to start my build with RTR. Current builds you are looking at an all in cost of $300K to $325K and I was told rents are from $2,500 to $2,700 a month but when looking on websites there are plenty of rentals on the market in the $2,200 range. If you can get $2,400 rent using the bigger pockets calculator 5% exp, 5% vacancy, 5% cap ex and 12% management (they say 8% management but when they charge 1 month rent for new renters it's closer to 14%) CoC is basically zero! I think if you are not currently under contract or about to go under contract you missed the boat as I can't see rents going up much higher. Actually I am considering not closing on the lot and losing my earnest money as I have asked both property managers I have been steered towards to provide current rental contracts proving their $2,500 to $2,700 rent estimates. On day three now waiting for a response so not getting a warm fuzzy on their estimates but maybe they both are just very busy and haven't been able to respond! Also RTR claimed $6K in closing costs on their pro forma and that is basically false (in my opinion). If you get a second home loan I am not sure of the closing costs but doubt it's even close to the $6K. If you go the construction loan then conventional loan route which I am potentially doing the total closing costs are closer to $26K. Not to be negative but all the hype on here about the Cape Coral market was true months ago but if you aren't currently under contract the CoC play is gone for now. If you are looking for strictly equity it might be okay but the investors that got in months and months ago hit a home run for sure! I just didn't have the capital until now to do so. Hope this helped!

There has been a ton of talk about new builds in the Cape Coral, FL area. This will be my first rental so still learning. I have talked with a few of you separately but wanting to know what criteria you looked at when deciding on a lot? More specifically I am torn between water or dry lot. Is insurance and maintenance higher on a water lot? The lots I have been given are the same price for water or dry but I am being told it's about $5K more for grading the lot for the water lots. Also told a water lot will bring in at least another $100 a month in rent so the CoC return is better with the water lot. Looking for pros/cons of dry vs. water and anything else you look at before deciding on a lot? Thanks.

Thank you all for the many pieces of advice. I am so excited to start digging deeper into real estate investment. So many things to learn, decide and narrow down. I feel so blessed that all of you and many others I am sure are so willing to help newbies out the best you can. I appreciate all of your comments and look forward to talking more with some of you! Thanks Again!

I have just started my real estate research and haven't narrowed down yet exactly how to move forward on my first deal. When I say just started I mean less than a week in to my journey but will buy my first deal in 2022. Should I start out with a Turn-Key investment to just get started since they already have a team of professionals or try and find my own team right out of the gate? Should I look at single-family or multi-family? I have narrowed down my markets to three but asking for insight from BP members to maybe narrow that down even further. The current markets I am looking at are Fayetteville, AR, Fort Worth, TX or Oklahoma City, OK. What are any thoughts on these three markets and why you would choose one over the others? Any Turn-Key providers or real estate agents you would suggest in any of these markets. I am not looking at a home run although I would take one I just want a base hit to get in the game! Any help narrowing down my search to location or type would be greatly appreciated.