All Forum Posts by: Ian Stromski
Ian Stromski has started 4 posts and replied 7 times.
Post: First Property! HouseHack New Jersey 3 unit (Triplex)
- Posts 7
- Votes 7
Investment Info:
Small multi-family (2-4 units) wholesale investment.
Purchased my first wholesale deal! Got a three unit in livable condition, but needs modernizing and a few repairs. Purchased for 355k, and budgeted 20k/unit Reno and some extra for other Capex.
What made you interested in investing in this type of deal?
House Hack, getting started on first property.
How did you find this deal and how did you negotiate it?
Found through agent after 8 months of searching while doing Air Force pilot training duties "on the side" xD. No contingencies. Got 5k off after the walkthrough because the deck was unsafe and needed to be redone AS SOON AS POSSIBLE.
How did you finance this deal?
Did a "hard money loan" with family using gift tax exemption and trust as collateral (despite what Dave Ramsey says, my father and I have an incredibly strong investing and personal relationship). I am getting this loan at 5% int and paying down principal and interest on each payment. If I Refi, I will pay him back against my lifetime exception, or if not I'll pay him and his wife $x each year, in accordance with IRS gift tax limits. Perhaps unusual, but legal with the IRS. Thoughts on this?
How did you add value to the deal?
Planning on renovating and renting at market rates.
Calling New Jersey/Multi-Family Investors! I’ve done some serious homework on the first property (triplex) I’m looking to buy. I’ve got a unique situation with the seller, where she wants an owner occupant. I’ve made 2 offers below asking and she’s willing to take asking, with some wiggle room for the occupancy.
I’m trying to decide whether or not to make one final offer before she shows it to investors tomorrow, where I know she will sell it.
I’ve got a report on the comps, town info, financials, condition, etc. and spreadsheets with rents and scenarios.
Is there anyone who has 15 mins for a phone call/Zoom as a sanity check on this final offer?
Matt,
HMU! Im heading to McGuire, NJ for my first assignment in the KC-46. I am also looking to house-hack. Let't chat!
Quote from @Bonnie Griffin Kaake:
@Ian Stromski You are in a great place to be investing and house-hacking. While you are considering options, be sure to consider the ability to leverage tax benefits available with investment property.
1. Since you will be in NJ for at least 4 years, be sure to take advantage of cost segregation on your multi-family investment purchase.
2. Even if you live in one unit, you can still cost seg the rest of the building and get about 6-8% of what you paid for the property plus any rehab needed, in taxes you will not have to pay up-front.
3. When you move, if you plan to divest of the investment property in NJ, do a 1031 exchange into your next larger investment property to avoid the capital gains and recapture tax. You can also do another cost segregation study on the new depreciable basis after the exchange.
4. Buy a larger multi-family rather than a duplex if you plan to live in one of the units. This will maximize the tax benefits available to you. You can only use the benefits on the portion of the property you are not occupying yourself. A small duplex with only 50% of the property qualifying for cost seg is not as valuable to you as the same amount of money invested in a 4-plex with 75% available for tax benefits of cost segregation.
5. Since the Bonus Depreciation is most likely to go back to 100% for purchases in 2023, 2024 and 2025, the time to buy is now!
6. Be sure you are working with a CPA that understands the value of leveraging the tax benefits on investment property and working with an engineering-based cost segregation company with on-site property reviews and audit defense at no cost if ever needed during your ownership. This is NOT the place to skimp on cheap services without good no-cost on-going consulting when you need help down the road.
Think this through as you are doing. You are headed for a wonderful investment future!
Thank you! I know a little about 1031, but little about cost segregation and other tax benefits I need to be taking advantage of. This post has given me some great info to look into.
Hey everyone!
I just finished pilot training in Del Rio, TX. Now that the intense year is over, I'm roarin' and ready to go with some real estate. I'll be moving to McGuire AFB in New Jersey and am looking for my first property within an hour of the base. I'd like this to be a 2, 3, or 4 unit househack. I have a good chunk of cash available, but I want to start by taking advantage of a VA loan (0% down).
My goals are to start with a househack and later, between flying duties, do a mix of BRRRR/traditional investing in multifamily units. Down the road (or sooner), I'd like to get into the larger commercial residential space. I have an inactive salesperson license in NH, studied some real estate in college, and have listened to/watched a good bit of Bigger Pockets. I also enjoy investing in stock options (covered calls mostly).
I am from NH and hope to settle back there eventually but I will have at least 4 years in NJ. I'm excited to get going and I'd love to connect with anyone, especially if you're from, have been to, or know the area! I'd also love to connect with anyone military who is in this awesome community.
Cheers,
Ian
Post: Military Moving to McGuire AFB, NJ Looking to Invest and Connect
- Posts 7
- Votes 7
Thank you, congrats on an impending retirement!
Post: Military Moving to McGuire AFB, NJ Looking to Invest and Connect
- Posts 7
- Votes 7
Hi!
I am moving to McGuire AFB within the next several months. I am looking to take advantage of my VA loan and move into a 3 or 4 unit househack with my partner. I am later looking to get involved with BRRRR (about half-way through the book now). Looking to connect with anyone in the area who has some investing experience, lessons learned, or just wants to chat about military/real estate!
Thanks a ton!
Ian