All Forum Posts by: Jeff Howard

Hello,

I have a fairly high AGI and am wondering if there is an income cap for taking the mortgage interest deduction and depreciation on any rental properties I may buy in the future.  I hunted around, and I don't believe there is (I believe this is separate from the 150K AGI limitation on taking passive losses against wage earning income).  We just refinanced our townhome and are looking to keep it as a rental and buy a new primary and I want to make sure we can take maximum deductions and expenses running our new rental as a business.

Thank you,

Jeff

Thank you everyone, I appreciate your input.

@Chris M.  Good stuff, and also reassuring. We just closed on our refi ($400 less a month baby!) and my credit was 753-780 according to the "big" three.  So it sounds like I should be okay.  Which is kind of funny because when I looked at my free credit score, I ranged from 795-805.  Not sure why the "real" score was so different from the "free" score.

@David Faulkner

Great post!

I actually have met with @Joe Homs for coffee and we had a great chat.  I should reconnect with him again soon.  I intend to visit the court house auctions sometime and see how that whole thing goes down.  I have talked to several hard money lenders, and the idea is very appealing, as is a syndication platform like realty shares (I am an accredited investor).  Putting up 100k for flip deals in a heated market where deals are few and money is cheap, it seems like potentially a lot of risk for 8-10%, but i think that mostly stems from fear of the unknown.  I know the Norris Group is a top shelf group that I could talk with.  However the long term benefits are not there compared to actual real estate (at least so I hear!)

Do you attend any of the meet ups in the area? 

Hello,

I will soon be purchasing a first of hopefully many income rental properties in good cash flow markets such as Indianapolis and Birmingham. However I also want to remain in a good position to buy a new home for our family as our three boys outgrow our two bedroom town home in Orange County. I want to be as aggressive with buying rentals as possible without jeopardizing our ability to obtain a competitive conventional jumbo mortgage for a SFR in Orange County. I believe that the lenders use .75x (gross rent- PITI) for income purposes, so in theory my income will increase from a DTI standpoint, but will my credit get whacked hard every time I apply for pre-approval and subsequent additional mortgage? This is a major concern (especially for my much smarter than me wife) for us. I appreciate any thoughts on the matter.

Happy investing!

Jeff

Hello, I am in the final stages of buying out of state rental properties. I know I want to buy in both Birmingham and Indianapolis, and possibly KC and Orlando. Is it too much of a headache to try to close on multiple properties in different states? Would one lender be able to service 3 homes in different states? Or am I just way better off buying one at a time? I am in the pre-approval stage and I am trying to figure out my best options. Thank you!

Joey Noel thank you so much for your feedback! If you don't mind sending me a PM with whom you worked with on your TK properties, that would be greatly appreciated. Properties sitting vacant for 3-4 months seems like a big hole to dig out of.

David Faulkner Thank you for your post. I would love to hear about good cash flow opportunities in Orange County. It seems to me we are due for a small correction of 10-20%, and unless you go way out in the upper desert, I can't sniff of anything that would be a positive cash flow opportunity,and I don't think it is a good time to be hunting appreciation here. All that being said, I am all ears on how to make a good investment in SoCal real estate. The numbers simply don't seem to add up. I am looking at homes in the higher rent ranges in nicer areas of BHAM right now that rent in the $1000-$1300 range, with a 95-130k purchase price. Another interesting question is why aren't renters in this higher price range simply buying the home? A 100k mortgage with 20% down is going to be less than $600 a month.

Thank you everyone!  I have sent @Joey Noel a message to discuss

@Mike D'Arrigo thank you for the info and matrix.  

I will be flying out to visit both areas and meet with multiple PM companies and TK providers.  After reading about some bad experiences people have had, I am thinking the tax deductible trip will be well worth the investment!

Hello,

I am getting closer to pulling the trigger on our first investment home and have roughly narrowed it down to Indianapolis and Birmingham. Obviously very different spots, and buying in both areas is an option down the road, but for now I would love any specific thoughts and advice from actual investors within these MSA's.  Is one state more landlord friendly?  Any hidden tax or expense "gotchas"? Is closing the purchase and loan in one state any more difficult? I appreciate any feedback.  

Thank you!

Jeff

Ok, great stuff everyone.  So now the big question. If you could buy this home for 65 K, put 20% down at 5%, your mortgage is under $300/month.  Why are these homes not being purchased buy the current tenants? Is it likely a matter of not being able to save for the down payment?  As an investor I am not complaining, but it begs to be asked.  Thanks again everyone, learning a bunch here.