All Forum Posts by: Peter Schuyler

Only interest paid on a mortgage is deductible.  Not the full payment.  Paying extra reduces the prinicipal faster, which reduces the amount of interest paid on future payments.  So, paying extra actually reduces your deductible expenses.  

Now, it actually does save you money.  Sometimes people get so caught up in avoiding paying taxes that they are willing to spend a dollar to avoid 28 cents of taxes.

Hello, People of BP!

I want to know how those of you who are out of state investors do it. Do you actually travel/drive/fly to do a walkthrough on the property before you make an offer? I feel like that lapse in time could jeopardize a potentially great deal. However, it seems woefully irresponsible to purchase sight unseen. Looking for some advice here. Thanks!

@Peter Schuyler

Extra payments each month will go to principle, which has nothing to do with taxes.

@Felipe Ocampo cap rates are very low right now. It is worse with single family, because many of the best rentals are starter homes. There are many first time buyers chasing these types of properties, which has driven prices up. People buying a home for their primary residence could care less about cap rates. Turn key providers need to charge more for the service they provide. If someone looking for a primary residence will pay $180,000 for a property, the turn key won't sell it to you for $170,000. They need to make money.

The advantage of turn key is they make it easy, so you pay for convenience. Could I cook a meal at home for less than going out to a restaurant? No doubt my meal would be cheaper, but sometimes I am in a hurry and don't want to put all that time into cooking a meal. That is kind of where turn key fits in. 

@Derek Dombeck these numbers are with financing. With all cash, the cash on cash returns would be even lower. I have about $40k right now. Do you have any recommendations as to who I should contact for private lending? Although that might be risky if there is a correction in the near future. 

@Holly Williams Thank you very much. I will contact you to see what opportunities are available. 

@Dominic Courtney welcome! Biggerpockets is a great community to learn and get your questions answered. 

@Lane Kawaoka with the current market conditions, I think you are right. The sophisticated investors with the experience and connections are the ones getting the deals, which is why I started thinking that maybe I should hold off for a year or two and see what happens with the market. A lot of investors are predicting a correction in the near future and it would be a great time to have cash and buy as many properties as I can. 

@Account Closed I will also look into REITs to potentially "park" my money for a while. Although I don't know much about them. 

Hello, quick introduction as this is my first post on Bigger Pockets! I live in Washington State and currently own 1 rental home in my hometown. Prices in Washington State as a whole have become insane and opportunities to buy for cash flow have all but disappeared. After hours and hours of research, I have decided that Birmingham is at the top of my list for long distance investing. Currently, I have two options: Turnkey or BRRRR.

I will be visiting Birmingham March 12-15 to check out the town and get boots on the ground. If I go turnkey I am pretty deadset on using Spartan Investing. I have already heard Maureen talk on Get Rich Education and have also had a phone conversation with her about my needs/expectations as an investor. 

I would also like to make the most out of my trip and while I am in town, I would like to meet with reputable Real Estate Agents who cater to out of state investors and are real estate investors themselves. I would also like to meet with Property managers while in town. I tried searching through the forums before posting, but did not find any recent information that I could glean off. With that said, if there are recommendations for either of the above, or if there are active Agents and PM's on here that would like to meet with me, please reply or send me a PM.

Here are my expectations:

- I have cash on hand $150k for purchase and rehab prior to refinancing.

- I would like to focus on B and C+ properties only.

- Strategy is long-term buy and hold.

- Purchase price to Rent ratio = 1% minimum

- SFR to start off with, would consider multi-family in future based on performance/faith in team.

- Minimum 1 purchase 2018. Depending on performance, 2-3 purchases/BRRR's in 2019 and scale from there.

- Conventional 30 year fixed financing on homes.

Hopefully this is enough information, I look forward to hearing from you all!!

I close on a property with PARC next Friday. 

A few months ago I flew out to meet the PARC guys, see the properties they had available, see the areas they were investing in, see their rehab quality/standards (before rehab, with walls open, and completed rehabs). 

So far all has been as promised/expected. What appears to be a quality tenant was obtained in the time frame promised and at the rent price predicted. 

I'll know more a year or two from now, but if you have specific questions I can answer, feel free to PM me. 

Todd McGrath,

I'd love to share my experience with my condos. I'm completely honest and will tell you the truth. I'm not the type to talk people into anything. Everyone's situation is going to be different so it's good to hear from at least a few owners. Even though I'm a realtor, I feel a real owner can give you the information your looking for. I manage mine myself so I save there. It's really easy, even for folks that never owned an iPhone. I have taught my clients how to set up HomeAway.com or VRBO and now I use Airbnb as well. I to wanted a beach house at first and obsessed over it for years. I almost moved to one in seabrook when I sold my house in Houston. But thankfully I moved to Austin to give my kids better schools. I couldn't stop thinking about it though. One day I decided to look at condos and couldn't believe how low the prices were. Now I'm hooked. Yes!!! I still want that beach house so I can tell all my friends and family that I own a beach house but the cost is the same as 3 condos. I'm trying to be smart and later get the beach house. If you could pm me your contact info. We can set up a time to talk real quick about all the details and I'll be happy to answer your questions.