All Forum Posts by: Jónas Tryggvi Stefánsson

I'm so sorry about your situation.

It may be a long shot but I'd consider counseling a lawyer to see if you were illegally laid off. I don't know the laws in your country but where I'm from you'd probably not get away with something like this unless it's stated in a contract that business outside of work is considered a breach of the contract.

Congratulation on your new, and hopefully better, job. Keep up the side huzzle! 

I don't think anyone can tell you if you're going too fast or too slow, it depends on how your current path is aligned with your goals.

That being said, I'm in the same position. I expect my growth to become exponential but in order for that to happen I need to create the processes to make it happen but for now I'm participating in the reno but that's not sustainable long term at all.

I suppose it's going to happen with documentation and then outsourcing to qualified people after the processes have been made. I think one should stay within one's area of excellence as possible.

We hear this a lot: work ON your business, not IN your business.

How are YOU implementing this advice? How are you working ON your business?

Did you start doing it at a specific time in your investing journey and do you wish you'd have done it sooner? Was there a specific "aha" moment for you? Is there some specific kind of advice you'd give yourself regarding this topic when you were starting out?

Don't underestimate the importance of referring to the correct words. A newbie could come across the previous comment and think that 1% CoCROI is sufficient. My goal was not to provide anything new to the conversation but indeed clarify to avoid wrong information being presented :)

No. The cash flow should not be near 1%. The rental income should be near 1% of the purchase price, but ideally higher (1% rule/test or 2% rule/test).

When talking about cash-flow you're always talking about NOI (Net operating income, which is income - expenses) minus debt service (loan/mortgage payment).

When talking about cash-flow as a % we're usually referring to the CoCROI (Cash on cash return on investment) as a ratio of the cash-flow to the money invested, which should ideally beat passive investments otherwise available to you, in order to make sense as a worthwhile active investment.

Hey Ellert.

Long time since you made your post. How's your investment journey going?

How's your investment journey been going for the last couple of years?

Please don't take this the hard way but you you should really know the bare minimums before diving in. Of course you don't know what you don't know so all I can do for now is say kudos for attempting to dive into a deal so quickly but please, read the books (or listen via Audible) published by bigger pockets so you can very easily build a strong foundation that enables you to analyse deals properly and then come back and ask specific questions about the things the books don't demonstrate well enough for you.

Also, whenever someone says something you don't know what means (CoCROI for example), try to Google the term and attempt to learn from the internet. The thing is, the same questions have been asked million of times and you can easily find the answer and save your time and others by utilizing what already exists.

As for the CoCROI, I recommend Brandon Turner's very famous 4 square method to calculate rental properties on YouTube, just to name one way to learn the most important number in long term buy and hold rental property investing, it's only about 20 minutes.

tl;dr: great job diving in (most will not!), but please build the foundation from free or cheap educational material that will enable you to ask more important questions. It's not really helpful for you or others to ask and answer the same question for the nth time :)

Get educated and then dive in, and feel free to ask all the questions you have then :) (Of course you can do what you want and people are free to answer the basic questions, but you'd be doing yourself a huge service by educating yourself on existing materials, such as the bigger pocket books which are great). 

This sounds like a very tax specific question that should be addressed by talking to and ideally hiring a CPA who has experience with this.

What happens is state specific and depends on for how long the house has been owned by your parents. If they would just sell it and give you the proceeds you'd probably have to pay a gift tax, maybe they can transfer a portion of their ownership to you but you might have to pay a fair market price for the share, maybe it can be transferred but probably not -- since you're supposed to pay taxes on gifts received and a transfer of the deed is just one form of a gift if you're not paying a fair market price for it.

You will get some mixed answers and guidelines. I'm for one not qualified to give advice on the topic and many who are might be giving you advice that do not apply to your state. I hope you get something more helpful than this but at the end of the day you should consult a CPA.

BRRRR is always a good idea if it aligns with your ideal real estate investment strategy, the market doesn't matter.

That being said, not every market makes it easy to perform a BRRRR investment. That doesn't mean it can't be done.