All Forum Posts by: Eric P.

These were my first tenants, they're military and got orders to ship out soon.  They have all the utilities in their name, what do people normally do with this?  Do they cancel the utilities or do I just switch them into my name then switch them out when I get a new tenant?

Could you give me an example?  Like if I made $8,000 in cashflow profits on a property last year, showed $17,000 in losses and made $150,000.  Am I writing off a portion for the $8,000 but not the rest? 

Can someone better help me understand how the Rental REal Estate Loss Allowance works?  I was surprised to find out I'm going to owe $3,800 in taxes this year.  I have just over $17,000 in losses from our rental property on paper, but because my wife and I make over $150,000 via W2s we apparently can't take advantage of this loss?  Is this something that comes back when the house is sold or something?  How does this work exactly...

I was too young when the first bubble popped, I'm curious what buying during that time was like?  I've followed some of the sheriff sales in the area but it seems like they're really only getting about a 20% discount which simply isn't worth the risk to me without a walk through, they all seem to be long abandoned and needing major work.

It seems like during a bubble pop you'd be able to buy a foreclosed house directly from the bank, perhaps even able to finance it, and could you really get a $250k home for $125k in a situation like that almost move in ready?

I still think we'll see the economy bounce back sooner rather than later, and I don't think there will be too much impact on housing prices overall, but I do think vacation towns could get really hurt.  

In NJ for example we have the Jersey Shore that demands high weekly rents about 3 months out of the year.  Those 3 months typically more than cover expenses for the year, but I imagine a ton of non-savvy investors of those beach town houses can't afford to miss those rents.  

If this does stretch into July-August I think we could see a ton of houses start hitting the market out of desperation.  I saw an article that even predicted a potential 45% drop?

Curious of everyone's thoughts, we weren't planning on a vacation home for another 3-4 years but if that's the case I think we'd be crazy to wait.

My first property was word of mouth.  I talked to family and friends about how I wanted to buy investment property.  My mother told a friend of the family who was getting ready to retire and move out of state.  I made an off market offer, worked around her schedule and leased back for 3 months.  It was the smoothest transaction I could have ever imagined and has worked out fantastic, cashflows like crazy with military tenants.  

Finding a second place has proven to be a challenge.  I've tried direct mail sending hand written letters to about 100 homes in the area with no response.  I'm hoping Covid19 leads to some deals.

Yup, my 3.8% quote was for primary not investment.. I’m seriously getting so tired of the incompetency of the people in the world.  It feel it’s a constant battle trying to make sure someone else’s stupidity doesn’t interfere with my success.  True rate 4.5%... skipping the cash out, going to raise hell for standard refi since I didn’t bother shopping around when I heard 3.8.  I’m hoping for 4.25 or less for standard refi with recent drop in 10 year. 

I'm about to reach out to a home owner, best neighborhood in the area and this house looks a little forgotten about.  Doing a bit of research it looks like the owner is 69 years old, "purchased" the house in 2003 for $100, so I'm guessing family gifting.

The estimated purchase price online is about $315,000 so if I'm correct you offer 70% of the price minus any repairs.  Assuming it needs $50,000 in repairs/updates that would mean I'd need to be under $170,000 on the property is that correct?  

I'm also very risk adverse, so if it's estimated value is $315k I'd assume $300k and if I thought $50k in updates I'd probably go with $60k in updates to be safe so then really I'd want to offer $150,000.. Do deals like this actually happen?

This would be a buy and hold.


 

We ended up scoring a property for $97,000 rented back to the owner for 3 months at $1,300 then did some minor renovations and had the original floors from 1890 refinished, turned out amazing and is now rented to a great military couple at $1,700 a month.  This was an off market purchase from a friend of the family who was retiring and moving out of state and was just looking for a quick easy move.  House is now worth about $140k so we did very good on this one.  Finding another one is certainly going to be a challenge.    

Just as a follow up, I found a local lender able to do 15% down, sale price was $97,500 and had to put like $21,000 out of pocket total.  Downside was a 6% rate but I'm already looking to re-fi and saving 2% so alls good!