All Forum Posts by: Larry Yinger

@Joe Villeneuve you are correct. It is a very emotional decision for her. It's been tough and she finally had something that was all hers. I am kind of on the same train of thought regarding seeing the impact of this in a couple of years. Thanks for the response.

Hello all! I'm purchasing a residence for me and my partner will be moving in. I will be the sole owner on the mortgage. For various reasons that aren't really up for debate, she prefers to rent her current 2 bed/1 bath in lieu of selling. The issue is that her residence will likely negative cash flow at about $200/month. We both understand that this isn't how to run an investment. There isn't much that can be done in terms of increasing revenue. It's a top end home in a small somewhat rural town. I guess my main question is... Is there any way to minimize the effect of negative cash flow through operating at a loss? I've done a little research and it seems she may qualify to deduct up to $25,000 in losses since her gross income is <$100k. Does the $100k gross income include the rental income? The question seems silly but just want to understand because with rent, it would be borderline. Any other ideas in regards to minimizing the net effect of negative cash?

Best of luck to you!

Yeah, I'm probably not qualified to answer this.

I don't believe these upgrades would offer enough bang for the buck to a flipper.  They may make a property more desirable but not more profitable.

Your target market, I think, would be higher end home owners.

Of course, marketing to flippers isn't necessarily bad but probably wouldn't fit in the 80/20 rule.

The VA loan will work for an active duty or veteran. I do not know about discharge rating. Mine was honorable and I've used it twice.

You'll still need to qualify for the loan. Basically, the VA will back you and tell the lender that the loan will be fully repaid. You can use the loan for several things. You cannot use it for a pure investment. I know you can use it for a duplex if you live in it. I don't know if you can use it for a 40 unit complex if you live in it. If you have any questions ask away.

I'd suggest a quick Google search for your area and go talk to a lender in person.  They can tell you exactly what you'll qualify for.

Definitely do what is best for you.  No one on here can really tell you that for certain.  I only want you to realize that propping up the coffee shop is probably not the best option.  Investing is about making money.  Emotions need not be considered.  I guess what I am saying is that you need to decide whether or not the shop will allow you to reach your goals.

What do you mean by "commercial residential"?  A multi-family property or what?

Jon,

This may sound harsh. If you need to bail out the coffee shop, then why have it in the first place. The fact that you have the shop really shouldn't be a determining factor on your deal. If the strip mall would allow you to have the shop for free (or less than current), then realize that the coffee shop is still the problem. If the coffee shop is profitable, I don't see the point in co-mingling the businesses. You'll just need to come to terms with the fact that the coffee shop makes x and the REI will make y. If you buy the strip mall, x will go up and y will go down. It will be a net zero.

Invest in what you're comfortable with.  In this case, it seems like residential is the way to go.

Hi Shannon.  I'm not seeing a picture.

I would honestly ship them.  I've done it with clothes coming back from vacation and it was fine.

Your other option would be to get some cheap stuff there.  You'll probably end up needing something you forgot anyway.

Originally posted by @Account Closed:

How rad would it be if the app didn’t crash every time you tried to tag someone? ... anyway, Johann spotted a good point, tools are a category with a massive range of quality. For rarely used things, you probably don’t need to break the bank. Search reviews on brands before you rob the kids’ college fund. YouTube is great for reviews these days too!

 I've always lived by the old adage that if you are buying a tool, buy the cheapest.  If you wear that out buy the best you can.  There are always exceptions.  It just doesn't make sense to buy a $200 grinder if you only have a project.  Buy the $20 one and if you wear it out or find that you need more bells and whistles, then upgrade.