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All Forum Posts by: David Martin

David Martin has started 7 posts and replied 132 times.

Post: Hereos Act will hurt landlords in a bad way

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@JR C. Sooo.... did you actually read HR6800 at all?

Post: How to divide my AC bill with my tenant?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Kumar Gaurav how large is the unit on the bottom? If it's not massive, likely you can use a ductless mini-split A/C to replace the window unit, and then just use the window unit for a future unit/rehab. Since you already have the electric heat, you can get one a bit less cost as A/C only model, or get one with a heat pump added and then it's all-in-one.

From there, just eliminate the venting to the bottom unit, so it's all on their electric feed.

Post: points or no points--do you pay to get lower interest?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

Post: House Hack for 6 Months

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Jonah Torres Probably read this first to get an idea of what minimum requirements of home VA will ask for- https://www.benefits.va.gov/WA...

Post: Using an LLC to invest in another state

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Lamontis Gardner Pros and Cons to each, and lots of in between options. Would for sure get legal and CPA involved in this discussion, as it can have legal and tax implications.

For the sake of general info though... on the basic end for what you're describing you could do a foreign qualification in Illinois, which at a base level means that you're operating in the state, but headquartered elsewhere. If you made a second LLC in Illinois, then you're two separate entities, one business in each state, following separate legal rules for how to operate them. You then could have a blend of these where you could make two separate LLC's in each state, but then also nest them under a holding company in another state, such as Nevada or Delaware, for example.

Post: Will people leave cities post COVID 19?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Joe Splitrock yep... South Dakota has no blocks on municipal broadband development, so you have that advantage there. Not all the states are as lucky. Starlink will be interesting. I think through end of this year limits are Canada and Northern US, but will be interesting to see how that one pans out globally.

Post: Will people leave cities post COVID 19?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Phil Wells so... "but are people going to trade NYC for a place that's half the price but an hour outside the city, I think so"

yeah, but that's the deal, people already do that, so what's the difference here? I mean, my fried in Mahopac, NY doesn't live there because he loves the commute to Stamford, he lives there because Stamford and NYC are super pricey, and he gets better value for what he wants. The deal is, I don't think in these examples that the 'people leaving' part is the focus... it's where are they going?... having 0.15% of NYC workforce decide to work somewhere else doesn't move the needle much. Now, if you told me they all decided to move to Scranton, PA... well that's suddenly a like 1.6% boost in the population for that town... which is a much bigger deal... so I guess to answer your OP question... I don't really think it's going to affect major cities that much, but, for mid-sized cities that are big enough to have decent broadband footprints, this could be boom times for them. So I prefer, in this situation, to focus on which smaller places are winning bigger in this case than the larger cities are losing.

Post: Buy 1st duplex to house hack or pay off debt?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Hannah McBee At face value of this post, I'm saying kill the debt, and shave expenses where you can to save back to this point again as quick as possible. Being in a financially stable position and having taken the time to learn and know that this one property you're picking is THE best value and potential you've seen in months without question is the sweet spot for getting started.

If you simply just can't wait, your can possibly refi that debt out to a term that brings the monthly cost down under the DTI needed, so for example, if it's a 36 month note your on, see if you can get a 60 month and bring down the monthly commitment. It's not what I would really want to do for myself for that rate, but it is 'another option'.

Post: Will people leave cities post COVID 19?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Phil Wells Sure, there's the potential that some fractional percentage of people may want to leave major cities to telecommute, but honestly, broadband outside of most major city areas is abysmal. For anyone seriously looking to move and telecommute full time, that's going to be a must, so yeah, maybe the really dense and pricey areas take a small drop for a short time, but that likely will get filled in by the outer ring of suburbia around them that's been waiting for years to move in closer to the city when the price was right.

From there you have to think... where would they go if they were both trying to get away from dense populations but still have options?... Some ideas could be the triangle of Des Moines, Kansas City and Omaha. Middle America house pricing, but hey, you're within an hour drive of a major data center for every serious cloud services company. Probably Iowa area as a preference, as they don't block muni networks, so really small cities there can build out fat pipes to the internet to attract telecommuters that need lots of bandwidth, but want small town population density, and short drive to 3 larger cities if you want to still have the occasional city experiences.

Post: Regrets or anything different after using 401(k) for purchase?

David Martin
Pro Member
Posted
  • Cypress, TX
  • Posts 137
  • Votes 119

@Drew Lamb @Sam L. Take a quick read on self-directed 401k's/IRA's and it's rules and tax benefits and see if sheltering the buy in the account makes sense vs pulling the money for what you're trying to do. It's a pretty eye opening option that might be right or wrong for you depending on what you're planning.

starting point:

https://www.investopedia.com/retirement/doing-it-yourself-selfdirected-401k-and-ira/