All Forum Posts by: John Daniel

Hi there,
So first let me say, I am new to RE investing. Currently, I am looking to do a house hack and renovate the property that I end up purchasing around April. I wanted to know for tax purposes, how I should document everything and what is the best way to make use of the current tax system when it comes to my expenses from RE. I just got a new credit card that I planned to use only for real estate expenses. 

1) Can I create a new checking account and savings account to pay off that credit card? And would those expenses be considered 'business' expenses even though I don't have an S-Corp or LLC?

2) For expenses, such as learning material (books, classes, etc.), driving to view properties (gas &/or mileage), buying RE analysis spreadsheets, RE services like Rentometer, and other expenses along this line not necessarily that are purchasing material for rehab for the house. Is there a tax advantage way of doing this even though I do not have an LLC or s-corp? Is there any way for me can have the government legally consider my situation where I can take business expenses to lower my personal taxable income?

Would really love to hear some feedback from someone who was in a similar situation and/or someone with experience knowing tax laws when it comes to side hustles and how to help your tax situation. Thanks in advance!

Hey there, I'm looking to start to build relationships with some local lenders in Kansas City, MO to finance my first house hack that I am looking to acquire this spring. Any local credit union or local banks in the Kansas City, MO area that anyone recommends? Thank you in advance!

I feel very fortunate to be living in the Midwest in a city that offers a lot with a very affordable cost of living. I believe this will help in finding long-term success in real estate. Are there any specific area codes you recommend I start taking a look at?

 That seems to be the common theme I am learning... nothing like "on the job training". Being part of this industry and continuing learning counts as wildly successful for me!

Did you house hack and then continue to acquire more residential rental properties? 

Thank you for the welcome! I moved here during the pandemic in August after attending the University of Alabama (Roll Tide), can't wait to experience everything this city has to offer post-covid. The one thing I have still not come to peace with is this weather haha! 

Brandon, I appreciate it. Best of luck with your house hack! Would love to connect with you and exchange thoughts on how our experience in this house hacking goes!

I appreciate the advice! I've changed from listening to music to having BiggerPockets podcasts on while I workout now, have a list of reads ready, and am continuing to meet up with people in the area! 

I will definitely look into that loan option. Will an owner-occupied loan work for a house hack or is would it be considered an investment property at that point to the government? 

Thank you for the encouragement and guidance Chris! 

Thank you! That's awesome to hear, I think there's a lot more of us on this similar path than we think. If there's also anything I've learned is that growth comes from learning from others. I will definitely direct message you so we can learn from each other! 

For a few years now I have been interested in investing in real estate. From an oddly young age, I've always had the mindset to acquire as many assets as possible and limit wasteful spending on liabilities. When I entered college 5 years ago, something didn't sit well with me knowing I was paying over $10K a year to live in a dorm room. So after my first freshman year, I found a 3 bedroom townhouse, got my parents to purchase it, lived in one bedroom, and rented out the other two bedrooms to some buddies of mine. Now about four years later, I look at that as a great deal for my parents: I was able to live basically for free, they still collect passive rental income from new tenants to this date, and have built significant equity into the property. 

Currently, I am a 22-year-old structural engineer who recently moved to Kansas City for a great job out of college for a big construction-engineering company. I want to build a portfolio of rental properties as a way to build passive income for myself and the future I am envisioning. My barrier so far has been my off-and-on focus on actually learning and taking action towards my real estate goals. Last night I finished @Brandon Turner & Joshua Dorkin's BiggerPockets book: How To Invest In Real Estate - The Ultimate Beginner's Guide to Getting Started, and this book truly has taught me so much and given me actionable steps that I will take to pursue my real estate goals. I can't praise this book enough, especially for young people who want to get into real estate but don't take the next steps because of self-doubt regarding success and failure. My biggest takeaway other than learning a wealth of information regarding the real estate industry was that none of these currently successful real estate investors had it all figured out when they were starting out either! They did the proper planning (sometimes) and just went for it. 

My current goal is to close on a duplex, triplex, or quadruplex in the Kansas City area before my lease being up this summer. I can't wait for this adventure, to connect with more individuals in the area, and continue to learn as I start my journey in the real estate world! 

P.S. I hate reading and can't tell you the last book I read, yet I finished this book in less than two weeks... 11/10 I recommend this book for everyone just getting started in real estate!