All Forum Posts by: James Bird

@Caleb Rigby I found my first one on the Hud website and honestly got really lucky. I found it 4 hours before the owner occupant deadline closed. I bid a little over asking and paid closing only because the numbers worked and it still had a lot of equity. The second was a foreclosure I jumped on as soon as it was available. Zillow followed these changes pretty close. 

That makes sense. Thanks for the insight. Ill run some numbers and get a hold of my Accountant. I'm sure he will tell me the same thing. 

I hadn't even thought about that and don't understand it all that well. Do you understand/Can you explain how this works?

I bought a 4 bed 2 bath split-entry foreclosure 2 years ago as my first home (and still live there). I'm currently closing on my second single family and looking for a 3rd, so I set up the LLC, bank accounts, etc.

My current payment is in the 700 range and it would rent in the 1000 range. I want to use it as a rental as soon as it makes sense but that could be a few years out, hopefully sooner. I'm asking myself, why not switch now and rent to myself so it will be ready when the time comes? Also benefit from the tax advantages, improvements costs, asset protection, and start depreciation now? I plan to do everything legally (if this is legal) with rental contracts and proper paper trail.

If YES, would it make sense to rent at my mortgage rate or standard rate?

I haven't ran all of the numbers yet, so if this is nonsense please shoot me straight. I'm unfortunately still in the beginner stages and trying to find the best ways to move forward.

Thanks in advance.

Thanks Everyone. (apologies for the delay, I've been traveling)

@Rebecca Belnap. Vernal is kind of an anomaly. Its often seems opposite to the rest of Utah as far as real estate goes.  Its either really hot or very slow and when rentals are easy to pick up, you don't have much for renters. Vernal has been slow for a couple years but its slowly starting to pick up. After oil dropped a few years ago a lot of people got let go but as  @Dax Gurr

mentioned, it is a good time to buy SFR's.  I personally dont think we will see $65 this year. It starts slowly and follows the bell curve gaining momentum and then drops out from under everyone. Thanks for the advise Dax, I agree. I've been quite particular waiting and watching for the right deals, and then aggressive like Gary Vaynerchuk's book, Jab Jab Jab, Right Hook. Recommended!

@Stacey Mollinet Both SFRs are on the west side of town in areas developed in the 70s-80s. The numbers seem to work better with that market. How is your Fiveplex in Roosevelt performing? 

Also, does anyone know if we have REIA or realty groups here in the basin?

I bought a 4bed 2bath split-entry foreclosure 2 years ago as my first home (and still live there). I'm currently closing on my second single family and looking for a 3rd, so I set up the LLC, bank accounts, etc.

My current payment is in the 700 range and it would rent in the 1000 range. I want to use it as a rental as soon as it makes sense but that could be a few years out. I'm asking myself, why not switch now and rent to myself so it will be ready when the time comes? Also benefit from the tax advantages, improvements costs, LLC protection, and start depreciation now? I'll do everything legally (if this is legal) with contract and have the proper paper trails.

If YES, would it make sense to rent at my mortgage rate or standard rate?

I haven't ran all of the numbers yet, so if this is nonsense please shoot me straight. I'm unfortunately still in the beginner stages and trying to find the best ways to advance.

Thanks in advance.

Hello Bigger Pockets, I'm James but my out-of-state friends call me Utah.

I'm new to BP and investing. I've only been on BP a few days and have already got awesome feedback in the forums. Any tips/advice would be appreciated. 

I've bought one foreclosure a year ago with decent equity, I'm currently closing on my second deal, and looking for a third.  

I am looking for someone to help me with the legal stuff, property management, possibly a mentor, and people to connect with. 

Over,

Thanks! That's what I needed to know.

Hi, (first post) I'm closing on a single family rental in 4 days and I've been trying to find out if depreciation is based on present value or my offer price. Its a foreclosure, estimated worth (after rehab) 195k and I offered 86k. What number do I use to figure my depreciation?

Thanks in advance.

Hi, First off I am a rookie so my inexperience may get some backlash (also my first reply) but there are better options than losing money each month and that doesn't include vacancies, repairs or management. The cash you would get from selling (either no capital gains or exchange) would allow you to be quite flexible and invest in something that will cashflow and make more sense. Say you sell and walk away with 100-150k you would have a lot of options to pick where and what you want to invest in and if you do it right you wont be far from your second acquisition, then more :) If you rent your house now it may hold you back, so if your investment goal is single family homes I say refi. Are you thinking LLC or Owner held, because that will change your closing costs. ? If you want something closer to you, and/or multi family, sell and use that money as a spring board.

Good Luck!