All Forum Posts by: Josh Teunissen

@Taylor Brugna thank you for responding. We should close on our first property in two weeks. I wasn't planning on tax questions holding me back. Just as we creep closer to first time homeownership and landlording, these more complex questions come to mind. Also so many times I hear of people I know who's taxes are royaly messed up, I wanted to have my head wrapped around the subject to ward off any potential problems. Again I appreciate you sharing your expertise!

Disclaimer: I understand that I should consult a cpa for specific tax information. 

I listened to a podcast a while back (I believe it was Brandon Hall?) Regarding house hacking and taxes.

Im unmarried and have not had any write offs regarding income tax up to this point

Has anyone ever figured out the tax savings as a estimated % of a deal before purchasing? Even if it wasnt an owner occupied property?

Here's what I THINK I know regarding house hacking

- 50% of capital gains on a duplex sold after 2 years on a duplex

- any repairs can only be written off rental side

- depreciation on half?

Some of the questions I have are

- is the interst still deducted the same as if you lived in a single family?

- is gross rents considered income? I'm buying with partner/girlfriend of 6yrs so that may get messy?

-is the tax advantages so minimal that Im wasting brainspace thinking about?

-would there be any reason there would be greater disadvantages than advantges?

Of course I am going to consult a professional however I would like to have a better general knowledge of these things so I am better prepared to ask the right questions and make sure I am meeting with a true proffssional that understands these things

Thanks everyone, Josh

I tryd to search before posting, maybe I used the wrong keywords? If so I apologize

A thought I had on my drive this morning was whether or not Side x Side condos are a solid investment. There are a decent amount of these style condos in the little towns in the area I live. The area I wish to invest. They look like side x Side duplexes and are very well kept. They are always on the "newer" side of towns. The reason I became aware of these is because often I see a for sale sign in front of what I thought was a duplex but when I look up the listing it's a condo. 

The potential advantages I can think of -

- shared cap ex on roof and exterior

- list price is almost always exactly half of a duplex of comparable age - a side thought on this is if the owner of the other side were to sell at some point, this gives you two chances to negotiate price on the same building. 2x the Hassel but potentially a higher discount on the same property. You could argue lost revenue on one unit while you don't own it however you're in the deal for half as well. I also aknowlege that the purchase of both is speculative

- the area these are in are always where people want to live

Potential disadvantages -

- taxes. Are they taxed per one unit the same as a whole dulex?

- HOA, however I don't know how these work on smaller two unit properties.

- the homeowner next door not liking renters however I wouldn't want to place bad tenants either

I don't know that this would be a strategy to propel me towards my investing goals however if the numbers are great they may be instrumental along the way. They are desirable properties. This was a passing thought, what better place to dig deeper than bigger pockets? Please advise of any pros or cons you can think of and maybe someone else will get value out of the discussion as well. 

Thanks, Josh

extremely interesting and insightful topic. Following...

I don't have much by way of experience when it comes to real estate investing to contribute. But I do have experience in starting out in an area I have no experience.

I started a race team with little money and a big dream in 2013. Today we are fully sponsored with 2 cars on the track. I realized that dream through relationships and help from many people much like you read the veteran investors tell you they started in real estate. I'm sure by now you've read all about analysis paralysis, how about creative finance? Having all the answers isn't in fact the answer. If you listen to the podcast you'll hear many times repeated that what separates those who fail from those who succeed is percistence and getting back up after you fail. Not giving up. All of these things I can relate to with building our race operation. And I can see how they will apply to investing for me.

This leads into a thought I had today. Many times I've read on the forum of 17 or 18yr Olds wondering how they could get started investing, I suppose this suggestion applies to any age aspiring investor/entrepreneurs...

...carrying on...The title to this post suggests "Be Creative". Creative finance is explored heavily throughout BiggerPockets but I believe creativity needs to be applied and explored on all levels of problem solving. You'll read and hear many times on the podcast that first you must decide what your "why" is for investing. This is important because "why" you invest will be the motivation for being creative when you encounter a hurdle, barrier, or problem between you and your goal. 

Back to the idea I had today. I'm not really a writer so I have trouble with keeping my thoughts neat and organized. I'm working on it. 

I thought of a creative way for young and/or new aspiring investors to build capital, gain experience and gain some traction in their investing career with a low cost to entry. It's not perfect, but has enough potential I thought it worth writing about to inspire someone.

What if flipping campers could be a side hustle to build capital? That was the first thought. You could search Craigslist for an 80's model bumper hitch camper thats not junk but dated and rehab the inside to appeal to a family who can't afford a brand new one, but still wishes to have a good old Griswold family vacation. Crackpot idea right? I don't necessarily think so. You could pick one up for say $2000, got more time than money? Then $1000. Gut the inside and search craigslit or the clearance rack at your local home remodel store for materials and get dirty. Don't know how to fix? No problem, google is a great place to type your question to see if there's an answer. This is how I found biggerpockets. Lest say you spend $500 on materials and you could save the appliances. Your in the camper for $1500 and a lot of time. You'll likely have trouble determining your ARV. But that's no problem, cause' youre creative remember? Pick a price that seems fair, list it for sale and go for it. Along the way youll likely have friends interested in your project and help just for the experience. Maybe this is your future partner. Maybe your friends parents like it so much they're your first customer. Along the way your passion for the project will inspire others to help and give advice, this is what I believe traction is.

It's not a sure fire thing, you could fail. But you didn't sit around waiting for the money tree to grow in your backyard. You likely learned a lesson along the way. Persistence and not giving up is the common trait between those who give up and those who succeed remember? So be creative!

My uncle and I built my first racecar over the course of about a year. At first most around me said I was going to ruin my life and were sure to tell me how much of a waste of money racing is. But my dream (my "why) was more important. Those same people are the ones who helped push my dream of racing past what I believed I could build. I started out with out dated 3/4 used equipment. Today I have brand new 2017 equipment and great sponsors I'm grateful for. 

I'm not necessarily saying you should go flip campers (however I believe it's a good idea). I'm explaining in too many words to simply "Be creative". - Josh

@Ham Merritt the financing in place for the duplex we have an accepted on is conventional with 15% down. The credit union would do 10% on single family but not multi. Any bank I mentioned "FHA" the conversation always was quickly steered away no matter if I asked again. I figured although more down takes more cash up front, it makes the cashflow easier and the monthly payment lower which may be good for a first time landlord. I'd be happy to hear about more options. Thanks for the reply. Also could someone advise me why tagging other people doesn't work for me? I'll look up how to as well

When I was an elementary school age kid, my favorite show was the cartoon "Ed, Edd & Eddy". The entire show was about three Eds trying to "scam" their peers or rather start businesses to sell things to other kids. Im not sure whether im a dreamer as a result of nature or nurture but I think this silly cartoon played a role in my early inspiration to build and create. 

This led me to writing and drawing my own coming books that I had plans to distribute at school. (Never went through). I had an idea to buy candy at Walmart and sell to my peers for cheaper than the cafeteria vending machines. I once used crayons to design and draw out the function of what I believed the first hover car would look like and how it would operate. I wish I still had this drawing. As a kid I loved art and drawing. I had big ideas about being a scientist, an artist, an engineer or something great.

Somewhere along the line I let teenage hormones and unfortunate life events get to me and I walled off this side of me. I came to believe that I should be greatefull for an average job and dreaming is unproductive and frankly rather heartbreaking. Because at that time my dreams and ideas had led to dissapointment, I would hear things like "that'll never work", "why would you want to do that?", teachers wanted me to be tested for attention deficit because my mind was always in the clouds. In all the classes I would hear something that would lead to an idea hatching in my head that I would have to explore and discover. I began to associate these negetive reactions to believing that I needed to change. Coupled with a confusing home life and I deserted this side of me for what I believed other people said I should be.

Fast forward to when I found bigger pockets and I've begun to meet and become reacquainted with the dreamer, the artist, the creator of great things. BP has shown me the possibility of light on the other side of the tunnel. BP is moulding me from a dreamer to someone who takes action towards those dreams. Because an idea is only that, an idea, if you don't explore the possibility. I want to thank everyone who posts content on Bigger Pockets for rekindling the fire for me. As far as taking action, I've made an offer on a duplex in my area and we're creeping closer to close

Thank you all sincerely, -Josh

Today was my first post and I love listening to the podcasts driving truck and tractors as well. Welcome to BP

I should also add that I think 12 months is a long time, too long in terms of running a buisness. But other than what I read I don't know what to expect. I'd like to implement systems right off the bat, like using programs to track rent collection. I have to find an attorney to review contracts. With this first duplex I'm going to do the work myself to help give me a safey cushion in the budget, I'm pretty handy, and I have friends and family that are contractors. Plus it will give me a better understanding of how I want things to be done. So for this first venture I expect it to take a bit more time to get off the ground, and to refine the process and speed things up as I learn the what to dos and not too dos. I think BP is a great resource for these things, but first hand experience always sticks. Abother goal for me would be to purchase another in 2 years. That's how long I expect it will take to save another 20%-25% down payment +6mo reserves and rehab if any costs. That actually may be hard to reach but we're fairly frugal these days. My girfriend/partner has always been

@Corina Eufinger I understand what you mean,without dates how do I judge if I'm meeting my goals? Would you say its important to set goals and dates that are at the edge of what I believe are possible for my cerconstances or goals I know I can achieve? For instance within 12 months of purchase I want to have all the exterior maintenance and curb appeal completed as well as the renovations in the unit I live in completed. By then I should know if the tenant I inherate is a good fit for my property (he had lived there for 20 years) and either ask him to swap units or renovate his unit while he lives there. I don't have major projects in mind, but I would like to provide a higher class unit than the average for my area. Because I want to attract a higher class tenant. The property is in a newer nicer area than even I'm used to living so I believe it is possible. Oops...I've gone off on a tangent