All Forum Posts by: John Park

I have had an interest in real estate and houses in general since I was pretty young. Now that I am not young, It was time to put my interest into action. I like the idea of owning property, and if I can generate passive income from that all the better. However, my aspirations grow larger and larger with each passing day! I also figured that for every down payment that I made, I was taking $35000-$40000 that was sitting in a bank account making me about $10 a year into $300-$400 a month. Yes, I am learning alot of valuable lessons with each house, learned something new today as a matter of fact in my dealings to buy the third: turns out I need more and more money in reserves for each additional house for the bank to approve me...it's all good until the money runs out I guess. Thanks for your advice! And thanks to everyone who has contributed to my novice question so far!

So, basically the 'left over' (cashflow) money does NOT have to be considered 'W2 Income' for lack of a better term. It can be utilized as capital without going through the 'tax wringer'?

I am new to investing, as I have bought my first 2 houses in the latter half of this year. I guess I didn't think this part of it through in detail before starting my new business, but, as stupid as this question may be, what do you do with the cashflow? I am netting about $700/month between the two properties and hoping to add a third by early next year, and I have caught myself wondering what to do with said net income i.e.,  do I pay myself a salary? Do I just let it sit in their respective accounts until I need it? Do I have to pay income tax if I cut a check to myself? Do I open another account to collect my cashflow in? I have no idea at this point, although I am leaning towards just letting it sit there for now. I guess I should ask my CPA, but since I've already spent the time to post this, I'd like to see what the BP community has to say...

 I offered 140K on a 150K list

@Michael Biggs I offered 140K on asking price of 150K.

Thanks for the feedback so far everyone! It has definitely been frustrating seeing other potential deals pass by because of this one being in a holding pattern. The seller is a 'community action center' and they have several houses on the market concurrently that all seem to be in the same situation, come to find out. Turns out another house that I viewed on the same day was one of theirs as well and is also still sitting there as 'active' after almost 2 months. I am seriously considering putting a hard deadline on the offer.

I submitted an offer for a SF almost a month ago and have heard nothing but 'We'll get back to you soon' from the seller's agent. I am wondering what her definition of 'soon' is...

It is for a conventional sale, not short sale or foreclosure. Basically, I am wondering what I should do at this point, whether I should put a deadline on the offer and risk losing the house if they seller finally decides to look at the offer 'soon' after I have retracted my offer or if I should just keep waiting and waiting not knowing how many offers this unresponsive seller has sitting on the table. I think that my offer is pretty strong, but it is starting to get on my nerves more than anything else as I am not desperate to buy the house, it just fits my criteria and is listed at a reasonable price. It has been on the market for almost 50 days now in a market that moves houses like this in a week or less.

Any feedback and advice would be appreciated!

Thanks Bart Hedgecock

So do you feel that the monthly rent amount is the determining factor in not having a tenant yet? As I said, there has been and continues to be quite a lot of interest in the house, but either the prospective tenant has a self-admitted low credit score and/or other issues, and the ones that seem qualified have passed on the house. I have had quite a few showings and I have seen advice to try and make them fill the application out right then and there, but I can't seem to bring myself to be that pushy. Insofar as waiting, that's what I am prepared to do at this juncture, but being new to the landlording gig it is making me have a, should I say, more realistic view on landlording. Basically, I thought that I would have a tenant by now. That being said, I guess to point of my initial inquiry to your reply is: Is the monthly rent the factor that is holding me back as opposed to the credit score issue in your opinion?

I'll look the podcast up Myka and Steven.

Thanks Andy. I'll keep your advice handy. If I continue to have trouble finding a tenant, I'll contact you for sure.

Thanks Myka. I was actually trying to figure out what to do about the credit score problem but your mention of Airbnb sounds intriguing.