All Forum Posts by: Lance Robinson

@Ally Garcia

Here's what I would do:

1) stop putting money in to your roth. You want to do RE and don't get a match so it's worthless.

2) Refinance your Student Loan to a lower interest rate

3) Save up 3-6 months Emergency Fund. (Murphy's law, what can go wrong, will! Especially when buying a property and having no money in case something goes wrong.) Depending on job security go closer to 3 or 6.

4) Then I would aggressively save up a down payment to purchase a property with a conventional 5% loan for a SFR or condo and a 3.5% FHA loan for a 2-4 unit "house hack."

Remember that you can refinance out of your properties when the LTV gets favorable to drop the MI. I would consider how long you will be in the property and go 1 of 2 routes.

1) if short term and you want it to be a rental, it probably won't cash flow unless it's a multi-family, especially not in LA with an FHA loan with MI on it. So I would rapidly try to pay it down to get that LTV to a point where you can refinance it, then move out and rent it out.

2) If you will be there long term, then save rapidly for the next one and let your money and savings snowball.

Remember to celebrate the little victories and the harder you work now, the better it will pay off later. Feel free to shoot me a message if you want to talk more. Good luck!

I know @Carlos Rovira is familiar with the Miami market. Maybe he can help you find a realtor that won't laugh and will be able to help.

I would laugh back, especially when the market tanks in a few years and there's no money or access to money. She'll find her self begging for your money and business.

I agree with @Ali Boone's post. The team you work with is much more important than the market.

@Brandon HallI tried to update my post. Thankfully I have a CPA! Appreciate you clarifying, great to know!

Joe Splitrock good to know! I can't edit my post from the app but I didn't know that. Learn something new every day thanks. PS I will edit my post when I can at a computer as to not confuse anyone.

Jeff Ostreim I'm not in the best place to provide this advice, so this isn't legal but I do have my MBA and took some tax classes. What type of entity is it? If LLC or type of Corp then it will have to be filed yearly, check your state for guidelines or costs. If it is just in your name, then I would file any write-offs from the HUD, depreciation on a COMMERCIAL scale since it's a commercial property and I would divide out the number of days by the total amount of years it can be depreciated by. If no income or money spent in those 10 days, then there's nothing to report on your taxes. I would just capture depreciation. If you don't capture depreciation, then the only way to get those 10 days would be to adjust and re-file that return later with an amendment. If it's too over your head then maybe you pass on the 10 days of depreciation and don't hire a CPA and either file nothing for it (other than HUD write-offs which I'm not sure exactly what's entailed as my CPA handles that. I'm sure you can find info on the forums) or under the LLC scenario same thing but with the state rules around the entity. Good luck! Lance

I echo Chris M. I was going to say the same thing. I think you also have a less chance of audit by using a CPA too. Always play by the books. Congrats!

Justin Rick what type of neighborhood and asset class (SFR or MFR) are you looking for the market return wise? Will you be self-managing remotely or higher inflation a PM? Turnkey or doing it yourself?

Carlos Rovira , I don't feel comfortable referring anybody public ally on the forum at this time. Please PM me and I can introduce you to a couple of people that I do trust personally. Lance

Originally posted by @Charles McClure:

@Lance RobinsonWhat returns are good enough for you? What markets are delivering them?

In general numbers, I like A neighborhood SFRs at a 10+ cap with 15% CoC returns.

I also like solid B or better MF properties. I like a 15% CoC on these as well but generally a 12+ cap.

I like KC and Indy. I have also purchased both SFR and MF in Texas markets though with less returns because I like the rental demand.