All Forum Posts by: Larry Marshall

Ah ty for that info!!!

Guys I'm just learning about RE (like everyone, amirite) and so I'm ready to learn more about the tax advantages that keeps getting mentioned in the BP books but not really in depth.  Do I get:

The Book on tax Strategies OR

The Book on Advanced Tax Strategies

initially I thought the former bc I'm not advanced, but since they're written by the same people I wasn't sure if one was a more up to date version.

Whelp, the damn RE bug got me.  I'd be mad about most other bugs but this one looks like a solid bite.  

I am in the sponge phase.  I am BLASTING through BP's bookstore and oddly, every time tax benefits come up, I get too excited even though I don't get it all yet.  Maybe it's bc I have my Grandfather's blood in me (he was a CPA).

So I'm reading the BP's House Hacking book by Craig.  I'm only 15% into it right now, but I've read the other books and have a solid understanding of House Hacking and I read every single forum post about house hacking in SoCal in the last 3 years to see what others have already said...it's expensive and I won't live for free, so maybe ya get 50-80% of the costs covered.  And there's varying levels of house hacking with various payoffs.

My situation is I'm married with one 10 month old, might be another kiddo within 2 years.  My wife is open to house hacking but NOT with roommates (I agree, we're 33 years old and have a kid).  The duplex's...well I'm still open to them but I want to talk about ADUs!!!

I feel like not enough people are talking about them with these new CA 2020 laws that make them so much easier to get approved and built faster.  My main questions about these little wonders...

1) Has anyone done the ADU thing here in 2020 with the new laws? Whats the experience?

2) How do I look for a SFR that *could* get an ADU? How does one filter for that on the MLS? I have an agent that can do this for me but wondering what to tell him. Many ADUs start as detached garage conversion.

3) Do ADU's have any forced appreciation that benefit the property?

4) What type of financing can be done for the SFR + ADU construction?

5) Do lenders take into account rent from ADUs when determining loan amount?  I think it's usually 70-90% but what is fair market value rent for ADUs??

6) Are prefabs viable yet with this?

7) You made it this far?  This is just a thank you :)

@Anthony Gayden

I never thought about how everyone wants it to succeed so they can get paid. Ty.

@Joe Prillaman

I loved set for life! Read it while mowing my lawn via audiobook. Read rich dad years ago.

Thanks for your thoughts. Small bites. *deep breaths*

@Filipe Pereira

Ty for this advice. I agree — it’s all overwhelming when I take in too much info. Feels like 100 gears have to turn perfectly before the big gear works...Oi.

I have seen the power of RE investing. My grandfather bought into an apartment complex deal with his uncles back in 95 or so. It now cash flows $7,500 per month. Yes, you read that right. Eventually it’ll come my way, but I’d rather learn and get it done myself...sort of earn it first ya know?

I greatly appreciate these responses!  I think for me, I just have to jump into it with other investors and do a ride a long.  I also get hung up on the legals and the actual 'yeah but how'.  So for example, what is the actual process like for 'placing an offer' on something.  Do I just tell the agent selling 'I'll offer $90,000'?  Do I need to have finances in place before making that offer?  It's the logistics that gets me hung up simply bc it seems like 10 people are involved and so if I pull out, am I disappointing 10 people and wasting people's time?  I have too much empathy for not wasting people's time perhaps.

I’m in year 1—I have been eyeballing RE for years though. I have recently been reading a RE book every 7-10 days and man, have you ever been like “THIS IS A LOT OF INFO!!”

I want to do this, and I do believe RE can and will be apart of my life and retirement plan! But man, starting out, how do you get over the analysis paralysis and the insane fear of screwing up the first deal to the point where you wish you didn’t do it?

Do you buy a turnkey? Do you do a fixer? I have no experience with rehab. How’d YOU get the confidence to jump?

Great Q, was wondering that myself. Is the OC bad for FHA loan 2-4 multifamily? I'm still renting in an apt and wondering if this is a good route to go in OC!