All Forum Posts by: Jacob Eddy

What is the difference in using the BRRRR Strategy vs. getting a deal on a home 70% off? The major difference I can tell is that it sounds like you have to purchase BRRRR properties with all cash, then refinance once the property is stabilized. That being said, is it still just as good of a deal if you buy a home that is worth $100K for $70K and putting $14K as a down payment and don't intend on rehabbing it to much ($5-10K roughly), or refinancing it? Cash flow wouldn't be that great on the home we are looking at as it's just above the 1% but curious to know the difference. Thanks!

I just finished a chapter in the Tax Strategies for the Savvy Real Estate Investor and it caught my eye when it said you can deduct Property Tax and Homeowners Insurance.  I do not have any rental properties yet but anytime I've checked into deducting these two items for our primary residence, I was always told you can't do that.  Are these deductions for rental properties only? 

What is the average cost for an LLC? Is there a general price or is it per unit or per property?

Just got finished reading the chapter on setting up legal entities in the Tax Strategies for the Savvy Real Estate Investor.  Are legal entities or LLCs needed when you acquire your first rental property or is this more for someone with a larger portfolio?

On a side note, when I read the deductions chapter, it said you could even write off the Biggerpockets book since it is for growing your business!  Sure it was only a $15 book but for conversation purposes, can I write off this book even if i don't own a rental property yet?  :)

Thanks to all for the input. All makes sense and much appreciated. What is a T12?

Thanks Ross. If we pay cash in full on a house that needs work, using the BRRRR Strategy, could we then still refinance once we've rehabbed it, and get our money back out? Would this be more advantageous than going out and getting private money?

All of this is wonderful information and just what I was looking for so, thank you! Mindy, mentioned only being obligated to the ones the realtor brings to me... Does this mean that if I sign with a realtor, yet I'm the one that finds the house that we like on the MLS, I don't have to pay them the commission? In other words, I could spell out that I'm only willing to pay them, if they bring the house to my attention first? Just wanting to clarify...

If I sign with a Realtor as a buyer, am I obligated to use them if the house I end up purchasing isn't on the MLS?

Is there a rule of thumb for what a low ball offer should look like?  I keep hearing that if you're not embarrassed by your offer, it's not low enough.  Thoughts? 

So in the Beginners Guide, Brandon mentions that you're not likely to be able to obtain a conventional loan for a property that needs rehabbed.  Is this usually the case, even if you have a decent size down payment of 20-30%?