All Forum Posts by: Jason Andrews

@Dmitriy Fomichenko

Thanks for the information. Going to check out that Bigger Pocket link and get started on my Self direct IRA.

@Dmitriy Fomichenko

I have a question for you. I work for a company and I have a 401k but I do have a small business on the side. Can I start a self directed IRA from my small business in which I deposit funds for real estate investments? Would there be an added tax benefit for my business side of my taxes?

I purchased the small 2bd/1bth house with garage next door to our home to use as an office/business space possibly. My wife has a small clothing business (traveling sales-doesn't sell from home) and I have started getting into rent houses. So far we have been using a 20x20 room in house as an office that we write off for business use on our taxes. Could I write off the complete other house that I purchased for both of our businesses? Or does this house need to be deemed commercial property (which I don't and probably can't do in a residential area)? 

We are located in Texas.

Thanks

@Aaron K. My conversation with him was a casual introduction for the first time meeting. This was his wife's mother's place that passed away. He mentioned in a joking way "if I had a wrecking ball I would just take to the ground". I think he really meant it.

Thought it might be a great opportunity to maybe pick up a property for really cheap. I am going to research some more locally on cost of repair. Hopefully our next casual meeting I can get him to show me the issues inside and out.

There is a vacant house next to a investment property that I just purchased.

The house was inherited by a family member and has been vacant for sometime. The current owner said the house has a concrete slab that needs to be leveled and has caused a water leak under the floor. Other repairs needed to the brick and interior.

I have only purchased one investment property so far and it is a pier and beam house. I have no experience with a concrete slab renovation. Would it be worth making an offer? Or would the issues associated with this property cause me more headaches and to much money? General cost for leveling slab (small aprox. 1300 sq. ft.)?

Advice needed.

I need some advice on a multiple rent house portfolio purchase. These houses are located in low income areas. They are older 2/1 and 3/1 units. Most of them will probably need renovations in the future. Four units are rented with long time renters. One is vacant and seriously need of renovation. Based on his complaints all the time about his rentals I am assuming all them will need some renovations in the future. I will be looking at them next week possibly to get further information on them. Average rents are $620. The market in our area is strong on rental properties. Housing prices are high do to the oil field in our South Texas area. Even though oil field is slow demand for family rentals is strong. Asking price for portfolio is $250,000. The seller is motivated due to needing cash to build a new commercial building for his new business.

This seems to be a good price in our area ($50,000/unit) but how do I really get a good estimate on property value as a whole in making a good decision on this deal?

My son is an attorney and is going to be my partner in the deal and will be able to do all the paperwork. How do I figure my son's value in making the deal as he will be doing all the legal work?

Also, my son has a good friend that will possibly do our financing of the deal. What kind of terms on a loan should I expect or should I present to him on doing a multi-unit purchase? Finance each rental or all as a whole? At some time in the future I would like to pull out some equity for further investment and renovations.

As of now I am trying to get all the financials from the proposed purchase so I don't have any definite numbers on all operating expenses and etc.. I am just trying get inputs from you guys on how to do a multi-unit deal.

I have been studying everything on Bigger Pockets for the last few years and its time to make my first deal. I am still a newbie but it’s time to jump in if the deal is right. To many deals have past me by in the past because I didn’t think I was ready. I am ready now!!

I need some advice on a muliple rent house portfolio purchase. These houses are located in low income areas. The are older 2/1 and 3/1 units. Most of them will probably need renovations in the future. Four units are rented with long time renters. One is vacant and seriously need of renovation. Based on his complaints all the time about his rentals I am assuming all them will need some renovations in the future. I will be looking at them next week possibly to get further information on them. Average rents are $620. The market in our area is strong on rental properties. Housing prices are high do to the oil field in our South Texas area. Even though oil field is slow demand for family rentals is strong. Asking price for portfolio is $250,000. The seller is motivated due to needing cash to build a new commercial building for his new business. 

This seems to be a good price in our area ($50,000/unit) but how do I really get a good estimate on property value as a whole in making a good decision on this deal? 

My son is an attorney and is going to be my partner in the deal and will be able to do all the paperwork. How do I figure my son's value in making the deal as he will be doing all the legal work? 

Also, my son has a good friend that will possibly do our financing of the deal. What kind of terms on a loan should I expect or should I present to him on doing a multi unit purchase? Finance each rental or all as a whole?  I want to be able at sometime if needed to refinance each or all rentals and pull equity for further investment and renovations. 

As of now I am trying to get all the financials from the proposed purchase so I don't have any definate numbers on all operating expenses and etc.. I am just trying get inputs from you guys on how to do a multi unit deal.

I have been studying everything on Bigger Pockets for the last few years and its time to make my first deal. I am still a newbie but its time to jump in if the deal is right. To many deals have past me by in the past because I didnt think I was ready. I am ready now!!

Thanks Carlos. I didn't realize that the cap only pertained to homesteads. I am a new investor and have yet to purchase my first investment property. Guess I still have alot to learn.

Yes. I believe there is a 10% cap a year on property tax appraisals. My property taxes at my personal residence has gone up about 56% in the past 6 years. I went down a few years ago to find out why and the appraisal district officer told me that they could not raise my taxes on my house more than 10% a year.

The gentleman also told me that the state of Texas was hammering on all the counties about raising the appraisal values all homes. It all started about 2007 when the real estate market was going into a crash around the country and alot of states and towns were having financial problems. I think this was Texas way of injecting money into the economy with out giving money to any the towns across Texas. Pretty creative way but costly to individual home owners. Actually in 2007 or so when real estate was at the bottom my taxes went up 10%. As of lately they have stopped going up.

In your case I think I would fight this. That much increase should be wrong and no more than 10%. The only other thing I can think of is that you may have just purchased this place. Is this a new purchase? I know when I purchased our house the appraisal district in our county sent out a letter asking what I paid for the property and asked me to send it back to them with the value I paid for the property. If I would have sent it back to them then they would automatically raised my property value to what I sold it for. I didn't send it back to them because it is not mandatory. I don't really know if this letter is a county to county to thing but you have to watch out for this. Also, you have watch this because this letter also goes to the seller as well and if he or she gets it and sends it back to the county you have to foot the bill for taxes for the sold price.

Right now I am looking at a possible vacant investment property and I know that the tax value on the books now is very low due to condition. I will figure into my evaluation about double what it is now. Small towns and counties in Texas watch properties like a hawk and raise the appraisals as soon as they see something happening to a property.

Thanks Joel. That's what I was thinking.

I have a possible private money lender if needed. But how do you structure a contract with the private money lender and move to refi conventional loan? Still learning the different financing possibilities. Any other ideas?