All Forum Posts by: Jason D.

@Anthony Bates you said that you bought the house in 2011, and it's just you and your morher?

Sell that house and buy a multi family house, live in one unit with your mom, and rent out the additional units. Or, sell the house, move into a small (cheaper) apartment, and buy an investment property.

It seems as though itll be hard to increase your income much, so cutting your expenses may help speed up your investing.

@Wy Kay I consider 'C' class faitlrly safe. I have never felt the need to carry a gun anywhere.

@Austin White It all depends on what you can rent it for, and what the current mortgage is. But, it is something that you should consider

@Eamonn McElroy can you take a salary from the S-Corp to avoid self employment tax on some of the profit? Or does the corporate tax on the profit offset any self employment tax savings?

@Cynthia Harrison definitely speak with a CPA before doing anything, but if it were me, I would start with just the LLC with no tax designation, for ease of use. Then, when I started generating more serious ACTIVE income (wholesaling and flipping) I would look into a c-corp to save on some taxes by taking a "salary" and saving on some "self-employment" tax.

For rentals, just a pass through LLC.

@Boone Tyson it all depends on what your goal is with the BRRRR.... if you are planning to pull as much as possible on the refinance, you'll want the property to have the same finish as the comps in your desired appraisal range. If you're more interested in higher cashflow, and not so much the cash out, keep everything functional and working properly.

Unfortunately, electrical and HVAC are big ticket items that dont affect appraisals very much, from my experience.

@Frank Maratta and then sell in 7 years...

@Ben Gabin ifni were an investor that could funnel one on market sale per month, I would get my real estate license and make the 3% commission myself.

@Mike Khalil if you havent gotten an offer in 20 days I would argue that it probably isnt priced at market value. To sell it you would certainly have to lower the price, or dona better job to market it to the right audience.

A BRRRR is going to cost you a good amount of money out of pocket because, at most you'll be able to refinance 80% of the value.

If I were in this spot, I would keep it on the market, get it in front of the right market at the right price, and sell it for whatever you can. I think you'll find that keeping it will cost you far more than making a little or breaking even on the sale.

@Eric C. What's the plan? From a cash on cash standpoint, it's a terrible deal. You paid $60k out of pocket for the privilege of subsidizing your new tenants rent to the tune of $300+ per month.

If, however, you purchased the property for $100k under market value, and you believe that its value will go up another $100k in 5 years, you're a gambling man, but at least you know what you did and the risk involved with gambling.