All Forum Posts by: David G West

 Great point, yeah he took advantage of sec 121. 
He's aware there is likely a tax implication on the income of the LLC but main concern is if becoming a part owner would affect his eligibility for capital gains exemption thru 121.

Hi,

We bought a property last year thru an LLC and the previous owner was there for 2 years so he sold it with no capital gains.
For various reasons, we are partnering with the previous owner again and adding him as a partial-owner of the LLC and therefore the property. 
How would that affect his tax situation if at all?

Hi @Tim Herman, the city of Oceanside, CA allows STR with a permit & a fire department inspection. There are no HOA rules against rentals less than 30 days. In the worst case scenario with a ban, the property wouldn't cash flow that well (a few hundred negative).

I am comfortable with that considering this scenario still cash flows better than most other housing arrangements I could afford in this market.

Hi BP Community!

I'm about to close on my first property and planning to turn it into a STVR.

It's a 1 bed 1 bath condo in California close to the beach so the cash flow is expected to be pretty decent. I'm hoping to self manage but live about an hour away. 

I'm familiar with the local regulations but anyone have any experience/tips for setting up their first STR?

In particular, are there any can't-miss do's and don'ts in terms of marketing and preparing the STR for guests?

Thanks in advance for any advice!

Fantastic, that helps me get a really clear idea of my next steps!

Definitely appreciate the honesty, hopefully I can get something started sooner then!

Appreciate the kudos @Dmitriy Fomichenko

Thanks so much for the insight @Brad Sneckner! Definitely like the way of looking at my 1% of the additional debt as a payment on top of the mortgage.

To clarify, I graduated in 2019 (so not that recent I guess) and have been working a W-2 since, with a couple months of furlough at the start of covid. Would the rules apply for the last two years of W-2 work or if I become self-employed does that "restart" my work history?

If so, perhaps I should wait to become self-employed until I buy a home that way I can leverage my consistent income? I'm confident I'll be able to succeed with my 1099, it's just more so what it would look like to a lender.

Or would finding a partner with the financing work to mitigate my financial standing? I do really like the idea of doing the first property all on my own though. Appreciate any more insight you have so I can navigate my best direction forward!

Hello BP community! I'm a beginner looking for advice. I'm a recent college graduate looking to start my investment journey in real estate.

I currently have about 2/3 amount of debt ($30k in student and auto loans) as I do in assets ($17k cash, $25k in stock market & roth 401(k)).

I would like to invest while rates are still low (looking at August/September). Ideally, I would prefer to house-hack where I live/work in Southern California (looking at $600-$750k duplex+ possible ADU). However I'm also looking into long-distance rentals since housing is crazy expensive here and I want to begin investing sooner rather than later.

With all that being said I have a few questions I need help answering:

1. Would it be best to pay off all my debt before I make a purchase? Student loans are in forbearance until the end of September so I can wait to start paying those and save for a downpayment instead.

2. Should I pull money out of my stock portfolio and/or 401(k) (in form of a loan) to get cash for a downpayment? I will likely working 1099 instead of W-2 come June.

3. To avoid analysis paralysis, should I just commit to a house-hack style even if SoCal is a sky-high market?

I may have answered #3 for myself in the question but I'm worried I won't have enough for a downpayment to compete in the SoCal market. The question also relies on answers to 1 and 2 since the more funds I have accumulated, I'm guessing it will give me a better chance to finance and close a deal.