All Forum Posts by: John Laney

I've been really happy with them; purchased 1 house 6 months ago and getting ready to buy another next mon

Hello, 

Last year my dad gave me a 100k full recourse loan, at fair market interest rate, for a primary residence.

Looking at IRS pub 1098 https://www.irs.gov/pub/irs-pdf/i1098.pdf It looks like we need to fill out a 1098.  This allows me to deduct the interest expense.  

I've received 1098's from a bank but never created one my self. Is it that simple or am I missing something?

Thanks, 

John

@Brandon Riahi Thanks for your comments on the Midsouth Home Buyers Turnkey. I just wanted to make sure I read your comments correctly. 

You stated that in your portfolio of double digit houses you are seeing 25% vacancy?  -- That seems huge compared to their advertised 98% vacancy. They also advertise a 90day rent guarantee; did they make good on this guarantee?

You also stated that repairs were above their 10% target. I assume you mean you budgeted for repairs to be 10% of rents received. 

I'm trying to put together a budget for my future purchase. Currently I am estimating 4% vacancy and 5% repairs / CAPEX. Based on your comments that seems too low.

Thanks for the help.

Hello,  

I'm interested in purchasing a 700k+ home in the Oregon Willamette Valley in the 2021 time frame. But since I'm so far out I'm not really interested in committing to a realtor yet. However, I will be in the area over Christmas and am interested in walking through at 2-4 properties to get an idea of exactly what I want. 

My question is this.  What is the etiquette for a situation like this?  Should I go directly to the listing agent to walk through his/her listing? Or do I just need to commit to a realtor this early in the game? I want to be transparent an honest, but also not get tied down this early.

Thanks for the help, 

Best, John

Scott/Bill, you are exactly right. This is a great problem to have. Appreciate your thoughts and all the knowledge I've gained from BP.  I think that the refinance is a solid middle of the road approach.

@Bill Hampton let me do a better job of thinking through my intentions and tax situations and get back with you

Hello, I was bitten by the early retirement bug 15 years ago and plan on being there over the next 2-3 years at 43 years old. However, while I have lots of investments (Stock and realestate) I am bumping up into a bit of a cash flow problem with regard to how I manage my realestate.

Current Situation and Initial Plan: Through my small business, investment and pension income my day to day living expenses are taken care of. I will have approx 5-6k per month which will set me up very comfortably with out touching the principle of my 1.5mil stock investments.

Now, what to do with the four houses I have? My four houses are currently scattered across the country and valued at 1.3mil with 725k of debt against them. Considering the cost of selling them and taxes I anticipate 600k profit. My initial plan is to take this 600k buy a ~600k house and Christmas tree farm in the Oregon countryside and spend my time investing in my family, friends church, and community.

While this is a very conservative plan, I'm not sure it is the best plan since I take a big tax hit selling rentals to buy a primary house and take a leverage hit by no longer having any of my money leveraged.

A better leveraged option is to sell the rentals, take 120k as a down payment for my primary 600k home and the rest as a down payment for a multi family using a 1031 exchange.

You can now see the rub. While it is best to be leveraged with a mortgage, the bigger my mortgage, the bigger cash flow problem I have. Even If I break even on the multi family, I run into a ~3k per month cash flow problem for my primary mortgage.

Is there a third option that I am missing? I'm hoping not to touch the 1.5mil stock fund in order to use that for investing in my community.

Thanks much, John

PS. if you live in oregon, track me down in a few years for your free Christmas tree!

Thanks @Justin R.  May need to put this on the back burner for a few years and see how this tiny home market shapes out...

Thanks @Justin R. i think that was one of the San Diego regulation changes. As of the PDC-345 ADU's can now be rented while, guest houses (ADU with out a kitchen or laundry) may not be rented.

This is where application of the rules gets tricky. The rules allow me to put an ADU and rent an ADU on my own property; however, do they allow me to put an ADU on my neighbors property and rent that on his behalf?

Best, John

Collin, I've been looking in to this in the San Diego area.  All I can say is it is hard, if you want to do it right... There is quite a bit of legal loop holes, zoning issue, construction issues to all work through.  I have not given up yet, but  I feel like guys like us are a bit ahead of our times. 

Best, John

Hello,

I with the recent easing of California and San Diego rules on Tiny houses (Accessory Dwelling Units) I'm interested in purchasing 2-3 tiny houses / Accessory dwelling units, place them on underutilized property in the San Diego / Point Loma area and then rent those houses.

Does anyone have experience with:

1) the application of this law?

2) The contracting side of placing these units on the property (electric/water/sewer)

3) Renting these accessory dwelling units?

It seems to me the tiny house movement took off in 2013-2015 and then has died off a bit...

I've enclosed the specific laws/regulations for reference.

https://leginfo.legislature.ca.gov/faces/billCompa... -- THE CA LAW ON ACCESSORY DWELLING UNITS

http://www.sandiegocounty.gov/pds/zoning/formfields/PDS-345.pdf - SAN DIEGO REGULATION ON RELAXING RESTRICTIONS FOR ADUs

http://www.sandiegocounty.gov/pds/zoning/formfields/PDS-611.pdf - SAN DIEGO REGULATION ON RELAXING RESTRICTIONS FOR ADUs

Thank you, John