All Forum Posts by: Dan Kim

This was all very helpful. Thanks all!

I'm just starting out and I don't think I'll create an LLC to invest in my first few rental properties. Should I still create a new bank account (and get new debit/credit cards) for all the income/expenses for these rental properties? Are there popular banks that are favorable towards REI?

I just started reading the savvy real estate investor tax strategy book and my first immediate question is when can I start making these deductions? Do I need to have at least one investment real estate property? Can I start claiming these deductions with 0 properties in my portfolio (i.e. claiming deductions for mileage to RE meetups, taking investors out to lunch, purchasing books related to RE, etc.)? Do I need to have some type of legal entity to claim these deductions?

What are the pros and cons of investing in townhouses? 

Thanks for the response @Ken Naim. I'm looking to be an active investor eventually and I'm interested in cash flow to start out, but would also want appreciating property in my portfolio. I'm interested in house hacking, BRRR, and buy and hold MFR or SFR. Honestly, since I'm just getting started, I only have my work ethic and communication skills at the moment, but I'm learning and reading as much as I can.

Hey @Brandon Rush thanks so much for the response. That definitely makes sense. I have thought about that question and my end goal is to build a big enough business where I no longer have to work (outside of real estate, of course) and I can financially support me and my family with income generated from the properties that I'd own. 

I do think getting started in a high cap MFR and house hacking is the way to go for me right now because I'm just getting started and want to build some cash flow, but I do want to buy and hold properties for appreciation eventually.

Not sure if this is a silly question, but I'm having trouble understanding what it means when REI say that a deal has to "work for your numbers." Can someone paint me a scenario using numbers to illustrate what a good RE deal looks like? Doesn't have to be a real life deal (even better if it is).

I'd love to see a detailed breakdown including, but not limited to, financing/initial investment, NOI, cash flow, CoC return, etc. Something that looks like, I paid $x for a downpayment, took out a mortgage for x% interest for x years, spent x for rehab (if any), the NOI/CoC return/cash flow was $x/month (or per year) and this was a good deal because xyz.

I hope this makes sense. Thanks in advance for the help!
 

If you had $500,000 and are a rooke REI, what's your move to get started?

Would you focus on a high cap or low cap market? Would you buy and hold a SFR/MFR or go right into a different strategy/niche?

Thanks for the reading list @Wale Lawal

Wow, thank you everyone for your replies. I feel like this community is going to be so beneficial already.