All Forum Posts by: Christopher Parsons

Nice, I like that. Thank you both for the information/advice. 

Propelio has a free academy and one of the video series is all about wholesaling. Great free resource to teach you the basics, then you can always buy books to dive in deeper later if you feel that's necessary. 

@Todd Rasmussen what do you do with the positive cashflow? Do you let it grow in the business account so you can use it to invest later?

@Tim Herman, awesome advice, I was wondering how much you're supposed to let reserves grow for before you can put a hold on them. We're replacing the roof completely, so hopefully we wont have to worry for a major expense like that for 20 years or so.

I don't know too much about the laws in CT, but from I've heard some experienced investors say is they prefer to purchase a rental that is vacant of a tenant. That may sound illogical, but if you think about it, most landlords who are selling a cash flowing property are more than likely doing so because of a poor experience with tenants. Not always the case, but something to consider.

I know Mark Kohler has a lot of info on this. You can look him up on YouTube for some free research. From what I understand from the way he structures things, you want a passive side (rentals) and an active side (own a business, fix and flip, wholesale, etc). You would use LLCs for passive side and S-Corp for the active side. C-corps, from what I hear, are really expensive, you'd really only use it if you planned to have your business go public (as in selling shares) or if you were single and basically terminally ill. Haven't really looked into REITs too much other than investing in them myself, so can't comment on that.

As everyone suggested though, check with a CPA, preferably one that specializes in real estate. 

Hey everyone,

My wife and I are hopefully closing on our first BRRRR deal and I had a question for those who are rental investors. Where do you keep the money from rent that you set aside for expenses? Do you set up a separate bank account, have property management deposit the rent there, and then only transfer what you calculated for cash flow to your personal account? If so, is that the account you would use for multiple properties in the same area of investment? I've read a lot on strategies and how to analyze and calculate cash flow, but there doesnt really seem to be too much info on how to structure the financial side of rentals.

@Brian Hughes, I'm actually in Edmonds (pretty much Lynnwood) and would be looking at surrounding cities either more towards Renton or possibly up my way. I thought I found a plot in Redmond at $20k, but when I actually opened the info on Realtor.com, it was a South Carolina property that must've glitched to WA. 

I have heard King County in general is pretty ridiculous and slow going when it comes to permits and whatnot, so I'm thinking it's probably not worth my time. Thank you for point that out, I hadn't thought about all the added expenses when it comes to the permit process and didn't know about MHA.

@Jim Goebel, thank you for the input. I'm pretty sure I could get in, but it would be a matter of finding an appropriate lot. Another thing I would be looking to do is to find a builder who can do a small multifamily (ideally a fourplex). I'm sure that would cost a bit more though. I'm just curious if it's even worth my time or if I'd have better luck looking into other markets for rehabs. The nice thing is we're renting pretty cheap where we're at and both earn enough to pretty much wipe out our debt in less than a year. We might just try to stay where we are and aggressively save to BRRRR elsewhere.

Hey everyone, new to the community here and eager to get started with Real Estate investing. I've been reading a lot of material on rental investment strategies, but one thing I haven't heard yet would be thoughts on having a unit built. 

I live close to Seattle and house prices are pretty ridiculous at this point. One thing I've noticed though is that I can find the occasional piece of land for sale under $100,000. I've seen companies that have 8 to 12 models of homes they specialize in at a decent price (say around $200,000 to $400,000) which is still below what a lot of older houses go for (one of my realtors is sending me $800,000+ listings). In this case, would it make sense to build instead? 

I'm not necessarily stuck on the Seattle market, but would like to try to take advantage of house hacking while my wife and I live here for the next 6 years. Any opinions would be greatly appreciated, thanks!