All Forum Posts by: Jake Diab

Thanks for the perspective, Michael. It's great to keep all that in mind. The scary thing is letting go of control on a first investment and trusting in a stranger. Even the PMCs most recommended to me have their fair share of concerning reviews online highlighting major neglect and owner dissatisfaction with correspondence and basic tasks. I think the move on my end is to have enough knowledge and financial reserve that, should something go wrong with my PMC and a tenant vacates, I am able to cover the Mortgage payment during vacancies, and can either find a new PM to help fill the next vacancy, or do it myself and handle management from there. 

Thanks again for taking the time to hit me back. 

Hey Sean, 
Thanks so much for the thoughtful response. I really appreciate it. In that case, I think I'll hold onto the property until the 2 year tenure is reached before selling it, so as to utilize a tax-free gain. 

Appreciate it! 

Thanks so much for sharing this perspective, Bill. I didn't realize that we'd be losing the capital gains, but that makes sense since it's no longer a personal residence. Appreciate you getting back to me... Happy New Year. 

Hey everyone, 
I have a home fully paid off that I live in, as well as currently rent out to one person. If I converted my primary residence into an LLC and then rented to myself (i.e., I'd still live in the house), could I utilize depreciation, and all other tax write-offs that go with owning an investment property?

Thanks so much 

Hi Friends, 
I intend to close on my first investment property within 3-6 months and I am curious what to expect the dynamic to be with a great, qualified Property Manager. 

For example, I'd would want to have the final say in:
- Approving a tenant based on the facts gathered by the PM.
- The communication to tenants of late / missed rents. 
- No expenses over $200 happening without my approval. 
- Any noteworthy activity or requests by the tenant relayed to me (to stay in the loop). 

I've heard so many horror stories of ignorant PMs that it seems too risky to simply "trust" them. I want to be spoon-fed all information. 

Is this too much to ask? Is it negotiable? How does this dynamic typically pan out, in your experience? 

Hey Travis, 
Thanks so much for the detailed response. I'd love to review any resources you have on the city of Detroit; my reservation has been that the level of violent crime - particularly, shootings - in many neighbourhoods (with the exception of downtown) seems counterproductive to rental stability, but I'm sure there are positives I've yet to consider! 

That's a great point re: risk tolerance and predictability of income, and thanks for the context on the kind of reserve you keep on hand for family / real estate stuff. 

Looking forward to hearing back from you... Appreciate it! 

Hi everyone, 
I'm a full-time touring musician beginning my foray into investing - looking at high ROI markets in Metro Detroit (Excluding the city of Detroit itself) between 80 - 120K purchase price. I have a flexible lender, but thinking of doing minimum 20% down to avoid the PMI fee. Generally, I'm expecting, and am prepared to spend $30,000 between down payment and closing costs, which I can afford.

My question is: Given I plan to buy and hold rather than Fix and Flip or sell in a few years, what cash reserve do you think I should have to feel like I am prepared for the WORST case scenario (e.g., another recession, client vacancy of 6+ months, etc). Is $10,000 in reserve "enough"? I currently have a fully paid off house, and zero debt whatsoever. 

That said, I'd hate to find myself in a position where I am struggling to financially support my mortgage payment in the event of vacancy / recession. 

I'm stoked to start this process and have a solid grap of the fundamentals, but I want to make sure I'm prepared for when sh... hits the fan. 

Thank you so much for your advice in advance.