All Forum Posts by: Chris Coleman

@Edmondo Morgan Jr

The key with rental income is depreciation. It allows you to have real cash in the bank from your rental income, but a lesser amount or even losses on paper for tax purposes. Plus, you can deduct most common expenses related to owning and operating the property as a rental.

If you haven’t already, you want to read “Tax Free Wealth” by Tom Wheelwright.

@Joseph S Stevens II

Research the northeast and eastern suburbs. Bartlett, Cordova, Collierville. Outside of I-40/240

@Mark Woodling

If it’s true Turnkey, then you should have no deferred maintenance issues for at least 5 years, ideally 5-7 years. Also no major appliance issues. Major appliances should be fairly new, in very good condition.

There will always be minor maintenance repairs, but they should be just that - minor. No more than 5% of your gross rent per year in years 1-5.

Also, when I purchase Turnkey, I expect property management and leasing already in place. I know that’s not the standard with all Providers. But it makes it so much easier when you know there is a good property manager/leasing agent already working to keep the tenants happy and the property leased, or else they don’t get paid.

@Justin Brown this is awesome and I applaud you for committing to putting down the phone/tablet/laptop and enjoy REAL time with your family and yourself.

If you have a great team, then trust them. And, when you get back, have a meeting to discuss what hiccups may have occurred while you were away, and how they can be avoided next time. Hopefully only minor things. But just expect and be okay with the idea (or fact) that a few minor hiccups may occur and your team will handle it, at least to the degree of being able to put it “on hold” until you return.

Second, be prepared for a “detox” of sorts...especially for your kids. You could easily find yourself not really knowing what to do with your time...even 15 or 20 minute increments that you would normally just be texting or scrolling social media (or BiggerPockets ;)). It could even make you a little anxious. So it may take a day or so to get used to not just picking up your phone out of habit or even boredom.

But man, connect with yourself, connect with your family. Rest, relax, talk about life, passions, dreams, and have an awesome time!!!!

@Guevara M.

You don’t show any expenses for maintenance, and you didn’t say how much you invested when you purchased the condo. However, assuming you’ve probably put about $15K-$20K total into it (including purchase down payment, closing costs, and the $10K rehab), it looks like your $2,760/year is getting you somewhere around a 13%-18% return annually. Good percentage return, but not much cash.

If you want to 1031 the condo, then it looks like you would have about $30K to add to your Home equity of $50K, for a total of about $80K to invest.

You can definitely make more than $2,760/year with an investment of $80K.

@Hannah Phippen outstanding! Congratulations!

@Nasir Cureton

First establish your goals. Where do you want to be in 5 years? How much Income? How many properties? Whatever it is, set your goals.

Then work backwards.

What objectives will you need to meet each year to reach those goals? Put these objectives in priority order. Set dates and deadlines for when they should be accomplished.

Now, what action steps do you need to take to accomplish each objective? Prioritize the action steps based on the resources you have now and the resources you need to obtain. Schedule them by month/week.

Start taking action.

Review your plan each quarter and modify as necessary.

@Jon Arsenault

I actually had this happen last year. I was selling a property, doing a 1031 Exchange, and my Buyer was also doing a 1031 Exchange into the purchase of the property that I was selling.

I can tell you that it was more comforting to me knowing that he was a seasoned and serious Buyer/Investor. I was confident that he had the funding, had done his due diligence and therefore knew that he really wanted the property I was selling, and was unlikely to back out at the last minute. I can’t say that was all due to the 1031, and probably more so that he was an experienced Investor as well. But knowing that he was also doing a 1031, had the experience to do a 1031, had a deadline, etc, did help with my confidence.

In the end, it was a great and easy transaction.

@Anthony Ampaipitakwong

DFW is a hot market for pretty much all real estate investing, with a number of experienced multifamily syndicators. I am currently invested in two properties there.

If you’re looking to be an active owner/operator in multifamily, I recommend getting coaching or partnering with one of the experienced sponsors in that area. You can learn a lot pretty quickly.

I will second that "Thank You" to Greg Dickerson.  I reached out to Greg on BP last week, and he responded within the hour.  We had a follow-up call the next morning and he was very helpful with great information and answering my questions.  Greg is extremely knowledgeable and experienced in various aspects of real estate and business.