All Forum Posts by: David Rutledge

Thanks Shaun 

Thanks Jason,

I actually already have a few regular rentals. I switched one to Airbnb and I have seen a significant increase in my overall cash flow. I plan to buy in markets that I feel will work well for Airbnb while still considering the affordability, regulations and seasonality of the area. I am

In the process of researching different markets that I think are a good fit. I think Tampa, Davenport/Kissimmee in Florida, Memphis, Indianapolis or smaller college towns like Ann Arbor, Columbus, Waco or Tucson. I’m trying to find a few areas that will fit my model and see what is available.

I am going to give it a shot and if it doesn’t work for whatever reason I will convert to long term rentals. 

Thanks again for the response

David 

Hi everyone,

I am looking to purchase 2 or 3 investment properties to rent them out on airbnb. This is my short time plan while my long term plan may involved further purchases or the purchase of a primary residence (I only own long term rentals right now and do not own where I live)

My question is in 2 or 3 years time when I go to apply for a loan for my primary residence will I be able to use the income I get from STR to qualify as long as I have it documented on tax returns?

If I achieve my goal of purchasing 3 units by the end of next year and they do not count the short term income but still count my debt I will be unable to qualify for a mortgage.

I want to make sure I have all my ducks in a row before I go into full flight with the investments.

Thanks everyone.

David

Thanks so much Ashish,

My income for 2019 will be below 77k so does that mean I will not pay cap gains at all? Is this calculated when I do my 2019 taxes.

I have been claiming depreciation on the taxes. I am a bit confused with the tax implications on this. Are you able to explain this a little more please?

Thanks again for the info. I really appreciate your time.

David 

Hi everyone, 

I purchased an investment property in 2017 for 67k and I’m selling it today for 91k. I am wondering if I will be charged capital gains on this considered that my wife and have travelled overseas for the past seven months and have had no income. This means that our annual income is very low. I am well below 30k for the year and my wife and I may be below that even together.

I know cap gains is charged at certain levels depending on income so I am wondering if I am going to have to pay that tax co side ring my income is so low?

Thanks so much in advance.

David 

Got it, thank you for the advice.

So it is possible to line up a lender for refi with some type of hypothetical rehabbed product to present to them?

Also what happens if you cannot find a lender to refi? Does the hard money lender take the home?

Hi Everyone,

I am a relatively new investor living in California. I have bought 7 traditional buy and holds in both IN and NC and one in my home country of Australia. I purchased most of these properties with traditional financing and the last two with seller financing.

I am now ready to purchase my next lot of properties and I am looking into options. I would like to get some more information of the BRRRR strategy.

I learned a little about this when I first start investing in the US four years ago but as I was new and inexperienced I went with the very Conservative approach of conventional financing, 20% down, turn key etc... I have no experience with construction and buy all of my deals off the MLS. I am wondering if this strategy may be worth looking into a little more for my next few purchases.

My goals are to slowly build my portfolio to generate cash flow and long term income. I work as a teacher and would like to continue to supplement my income to help support my family in the future. I am not looking to scale my business into a huge operation or anything like that at this point. These modest goals combined with my inexperience in the rehab game have prevented me from looking to seriously into the BRRRR approach as of yet.

I would really like to obtain as many income producing sfr and small multi familys as possible and the two biggest obstacles I have found are being able to secure loans and come up with the down payment (I am sure these are typical struggles for other investors out there too) The fact that securing a hard money loan and then rehabbing is a creative way around these struggles really appeals to me. I would like to get an idea of how it all works.

As I understand it, a typical BRRRR deal would go as follows.

1) Buy fixer upper for below market value using hard money loan.

2) rehab the property

3) find a traditional lender who will refinance the property and pay off hard money loan

3)rent property out to long term tenants

4) repeat this process on another property.

Here are the main concerns or worries I have on this. The main concern I have would be how to be sure I can refinance the property. Is this something that can be done before buying the property? I am worried I will buy something with a hard money loan and then not be able to refi and be stuck with the loan over the property. Can someone help me understand how this works? Would I attempt to get a loan from a bank in this scenario when the property is fixed or try to secure that before I buy?

Thanks so much for your time.

David

Does anyone know if adding my wife to the title will affect her credit score in anyway? I am thinking no as she will not be on the mortgage?

Also, does anyone know how long my wife would need to be on title to be entitled to the proceeds of the sale i.e. is there a minimum amount of time she needs to be on title before we sell?

Thanks for the insight Kyle, to be honest I have no experience with this at all and I am just going off the advice from the attorney. I have explained what I need to do (which sounds exactly like what you did) and he is preparing the paperwork to file for the quit claim. Perhaps the law is different in Indiana but I am not sure 

Thanks Tony,

I spoke to the title company and they said that I need to use an attorney as they do not do it themselves. I found one that will do it all and record it for under 200 so that is not too bad.

They also said it shouldnt be an issue with the current lender as I am adding a spouse and not transferring ownership.