All Forum Posts by: Joshua T.

@Michael Plaks and@Steven Hamilton II  I had a meeting with my CPA. He has no idea how a house-hacker with a regular job like me could get a QBI discount on their rental income. Even the safe harbor rule doesn't apply to occupied residences. It doesn't seem to be that easy.

@Stephanie P. Unfortunately, Home Ready is only for low income buyers.

With the current hot market, I am finding no seller wants to deal with my VA financing. Looking for a low-down (5-10%) mortgage to buy a 3-family house hack in Rhode Island. Thus far, all the banks I have called want 20% down minimum for a multi-family purchase, even if it's owner-occupied. Thanks in advance!

@Jonathan Greene That's what I figured. This low inventory issue is certainly a difficult conundrum. Thank you for taking the time to share your thoughts and experience. 

Have been shopping for a house hack with little success. There's just not that much inventory in our area. I even did my own mailer to multifamily owners with little success. It got me thinking that wholesalers are in the business of finding off-market deals. There must be a ton of houses that they come across that weren't good enough for a flipper (<70% ARV), but might be perfect for an owner-occupied landlord. I'd be happy with a property at 70-95% ARV. There are some obstacles though. Traditional financing means I'd likely need to pay the wholesaler a flat finder fee in cash and the house will have to go through the regular inspection process with an appraisal. The seller probably isn't paying any agent fees either, which means my realtor's fee is also coming out of my pocket too.

Has anyone ever seen a wholesale lead turned into a traditional home sale? Are there any other challenges I haven't thought of? Thanks in advance!

@Steven Hamilton II and @Michael Plaks So safe harbor and trade/business qualification are mutually exclusive? I have a single owner-operator LLC and one multi in my personal name. The safe harbor would not benefit me?

I want to document my agent's and my own activities so I can claim the 20% Pass-Through Tax Deduction (aka Safe Harbor). I know the logs have to be contemporaneous. Wondering how others are doing this?

@Anthony Thompson Thank you for sharing your experience. I have no desire to run an AirBNB out of my home and illegal tenants are definitely not an option. Perhaps I will have to get creative to find off-market multis. Eviction lists might be a place to start.

While multifamily homes are plentiful in RI's cities, a job opportunity I am considering would require that I live in a fairly rural area where there are almost none. I believe in the power of house hacking and want to start building my family's financial security through cost-efficient living. So I am considering finding a large single-family house and converting a portion into an apartment. Welcome thoughts/advice on the feasibility and cost of doing such a conversion.  

@Anthony Thompson That is what I suspected. Thank you for that detailed reply.