All Forum Posts by: Lien Vuong

If the sales position is your FT job it would be unlikely that you would qualify for REPS. Here's a great article that explains the process and qualifications. Best of luck. 

Welcome to the BP community! Looking forward to seeing you in the forums. 

You'll still want to vet them like a regular borrower but make sure you're first position in the loan and have an attorney draft up the promissory note for you with the asset as collateral. 

So you can actually split this proportionately to the usage of your home. Once you have the establishment of the 2 year owner occupancy that's help you to cover the capital gains portion. Let's say the main house is 60% of the asset, you can then exchange 60% of the value of your sale into another rental property and pocket 40% of the gains under your tax exemption. This is most commonly done in multi families but applicable here also. 

Yes you can expense and depreciate those in Y1. Why is your STR in a 39 depreciation schedule? Is it a commercial (5+ units) property? Otherwise it should be 27.5 years irrespective if its in an LLC form or not.

Bonus depreciation/Cost Seg studies are typically most beneficial for owners of STRs and Real Estate Professionals, outside of those ownerships you do get some benefits but it is often not worth the value in the Study and take a long time to realize. 

A CPA who's familiar with your books would be able to answer your questions in a more specific way.

Congrats on this beauty and being able to restore it to its former glory. Hope you got to cash out on it! Looks like you got a lot of equity out. 

Welcome and wishing you luck in your 2024 goal!

I think $50k is too shy for Boston proper zip codes unless you're OK in a smaller multi family. If you're focused on the larger 2-4 unit buildings heading more North Shore, Merrimack Valley, and/or Southern NH is going to yield much better value. I see MV has the right middle ground here where there's less eyes on it and gives you direct highway access to the city whenever you need it. If you can get into some properties in Salem or Nashua that might make sense too but the tax bill might eat a good portion of your profits. 

Unless you're able to save to double your downpayment to $100k plus it might make sense just to engage in these markets you outlined and see what's available that fits your criteria. The right deal will come in time. 

Definitely do HELOC esp in this right rate environment so you dont pay on the $ from Day 1 and it gives you the allowance to find your next home at your leisure. You would not have the financial constraints to pay on those funds if you do not end up using it for your home or its entirety. You can go to local Credit Unions (CUs) and banks to get this LOC.

The core team to start off is an agent and lender which will assist you to be able to get started in the endeavor. In my experience, the agent has been the catalyst for other vendor referrals including attorney, contractor, inspector, tenants, etc so selecting one that you feel is well experienced in this space will help you to connect more dots. Someone in your situation might think to explore Physician's Loans since you're DMD which would qualify you for 0% down and no PMI so I'd see if that's a fit alongside with other lending products. Given that most of the homes in the zip codes you mentioned tend to need more work, its imperative that you have more cash in hand to handle those renovations and updates.

You can also explore Salem or bordering areas such as Derry or hereabout but they tend to be very high tax areas so that eats away quite a bit of returns and would not appreciate as well as more Boston central locations. In the end I think the house and asset speaks more than the town if it checks all of your other boxes. 

Good luck and congrats on your start so far!