All Forum Posts by: James Murphey

@Craig Curelop This book came out at the perfect time. I am moving and looking to do my first house hack. Since I have a family I will be on he easier side of the comfort continuum. The way I have been analyzing properties is first to see what it would cost for me to live in the property. I include utilities so I can see about what it would cost a month in total to live there. Then I run the numbers a second time to see what the ROI would be when we move out. Then adjust my offer to make around 10-12% ROI. After hearing you on the podcast I started thinking differently. Do you think I should be more flexible when making an offer due to the possibility to refinancing and loan pay down a year later? Thanks for the book!!!

Jay Scott has a tip about going to Home Depot early in the morning, and seeing who shows up for supplies ready to go.  Those are the guys he suggest interviewing for jobs.  I like the idea.  I do think if you can find a successful investor who has rehabbed properties before they could have some great referrals.  

I highly recommend David Greene's book BRRRR, and Long Distance Real Estate Investing. Both have systems for working with inspectors and contractors. I know he likes to get schedule the GC to come right when the inspector is leaving. That way they can communicate about what they see, and what needs to be done. I am also looking forward to the house hacking book coming out tomorrow. Probably some great info in that one too. I wish that when I was single I would have done a 4plex house hack. Probably the easiest way to get on the fast track. Good luck.

@Eric Oszczypala I agree.  I have a family too.  I am not really considering using the basement or mother-in-law suites as a house hack.  I am just looking at Duplex to Quadplexes, but I am most interested in two house on one parcel.  Those really get my attention.  Those seem to be the best for my location and situation.  I do not like the idea of having to share a common area at this point in my life, but I would live in a duplex with my family and rent out the other side, and as soon as year is up be looking for something nicer.  

Personally, I would first do a househack.  Then I would use the remaining to start BRRRRing.  I would want to acquire 20-30 SFRs.  Then I would probably debt snowball them.  Using what is left of the 100k to start the snowball.  Then I would only acquire new property when the deal was too good or I needed it for tax savings.  

@Stephen Roesler No my wife got her license, and then got super busy at her current job and has not used it yet.  I have been considering it when we move, but I think I would rather just focus on making money at my job, and investing.  I like the idea of being a RE Agent, and Investor.  I know the benefits would be numerous, but I know I would always be at work and on call. I am getting into investing as a way to simplify my life.  

Depending on where you live, having a license and doing a 1-4 of deals a year, it can make sense financially.  Especially if you are buying  investment properties.  I think also the depth of knowledge it will provide would be very valuable if you plan on investing for the long-term.  If you are not doing enough deals to cover your fees for hanging your license, and not buying investment proprieties I would reconsider.  

I would seek out a tax adviser that deals with other high income earners that invest.  Maybe talk to your colleagues or others that you know. I know a lot of high income earners will purchase rental property, and use accelerated deprecation (deprecating the asset over 5 years instead of 27.5) to save a ton of money on their taxes.  If you are making 300K a year I would look into the tax savings rental property can provide. That tax write off could be very profitable and provide you with a asset in the process.  Hope this helps 

@Momo Kanev I really like your idea.  Get in on the ground floor if you are really interested.  Learn about construction, and rehab while you get your finances in order.  In the mean time I truly believe the best investment you can make is in yourself.  I would start by reading, listening to podcast and audio-books.  Set for Life by Scott Trench is a great book for shifting your mindset.  He give a great step by step plan for going from broke to becoming financially free.  I would look into house hacking as a first step. Hope this helps  

J Scott's Book Recession Proof Real Estate is a great place to start.  He give great advice on how to make investments even in a hot market that will most likely be safe in in a recession.