All Forum Posts by: Forrest Williams

The great news is you won't have to worry about it this year it sounds like. If you plan on growing more it may help to get a relationship started with a tax professional. I did my taxes myself through several flips as well as leasing one unit and haven't been audited yet haha. Ultimately, it depends on your level of confidence in your tax/math capabilities, and if you want to save some extra money.

VA loans are some of the best in the business. You don't need to go through any additional work of selling a property to yourself through an LLC (which does raise red flags). A regular BRRRR will work just fine.

I would try to avoid an HOA if at all possible. There are some good ones, but mostly you'll be spending money every month for someone to tell you you can't paint your house that color.

My first house was a HUD home. You are required to live in it for a year at least, so if you aren't able to do that scratch it off the list. If you can contact a real estate agent, they will be able to fill you in on the "agent remarks."

It's been mentioned at least twice already, but house hacking is the way to go. You build equity, learn important maintenance and property management skills, and stop throwing money down the rent pit. If you're going to college, it should be easy to find a couple roommates to fill up the extra bedrooms. A 3 bedroom 2 bath will get you the most bang for your buck.

Hi Victor, you can check the tax records by googling your county + property taxes. There you can see if it has been appealed recently. There are tax attorney specialists for property taxes that may be able to help you file an appeal. Since you'll be living there, you'll also receive a homeowner's exemption so that'll help the tax situation too.

I got started by house hacking, it's the best way to do real estate in my opinion. You're on the right track!

If you are planning on renting out both units, I'd agree with the other posters and keep it a 3 unit instead. Having 3 income streams is better than having 2. That being said, if you're gung-ho about doing it, talk to your local city permit desk. Often changes like that need to be run through them, and they may not let you do it. In Illinois, where I live, there are lots of covenants about adding or subtracting units, and I would guess NJ is similar.

Structurally, you'll need an architect and a contractor to pull it off. But without seeing the place, I'm not sure exactly what else you'll need. Some local pros will definitely be able to help.

Nathan, you seem like a pretty established guy in the Cody area. If you know one of the top agents is visiting your property, talk to him about listing it. You'll probably have to work with him again, and beefing over listings is going to make your life harder in the future. Cash out a referral fee to lift the exclusive agency agreement and wash your hands of a client you don't even like. Otherwise, she may just wait until July 1st, 2022 to sell and you'll end up with nothing.

The seller is probably trying to save $150 per inspection by having other people do it. How many clients have you dealt with that go with the cheapest two-bit lawyer in town to save a couple bucks on their transaction?

The other agent should probably know better, but it's possible the seller has lied to them about not having an exclusive agreement or saying it expires soon. But you probably know the guy better than I do, maybe he's a scumbag and it's worth it to stick it to him. Personally, I try to live by the code, "Never attribute to malice that which is adequately explained by stupidity."

In a partnership of you and the lender, one of you will have to refer first. If no one referred first, they would be no referrals. So this guy hasn't sent you any. Have you sent any to him?

I would say you're being too sensitive, but it's good you recognize that. Ultimately, it's your wife's choice where she works, not yours. If she wanted to work for your worst enemy it would be her choice.

I think you're looking at this wrong. Your wife will probably be referring her clients to you once she gets them, right? So now you will be getting referrals from that company, once she starts getting her own leads. If she goes somewhere you're already getting referrals, your referrals will stay the same. Hopefully you'll work together to come out ahead.

A 50/50 split isn't unheard of when starting out, but hopefully she can get some sales under her belt and improve that commission. Lots of places will increase the split to favor the agent after the first couple deals, to 60/40 or 70/30.

Another great aspect of multifamily is vacancy. If you have a vacancy in a SFH, you're paying the mortgage that month. But with a multi, your mortgage is covered (at least partly) so you take less of a hit.