All Forum Posts by: Travis Michael

I'm sure this topic has been covered and I have read alot of post and have seems like everyone has an opinion but what real estate books did you find most helpful? I've read a few of Robert Allens books and found them so so.

And beyong reading where can I find a list of meetings or clubs ? I'm about an hour south of Pittsburgh. Would like to find a mentor or someone in the business just to see how these deals materialize instead of reading "how to's" all day online.

Any thoughts?

Thanks for the good info bill !

My dad also has rentals and I've adopted the "no friends, no family" rule when it comes to renting.
Since you seem to be an expert in the financing department once I own this property free and clear in a few years is there a way instead of 1031 to use my first property as my capital instead of trading it. i.e. taking a loan out for multiple properties using my rental as collateral. or would I have to pay capital gain taxes before using the property as leverage ?? Do you only have to pay the capital gains tax when you go to sell the property?

Jon,
The price (which is not final due to estimations on what it will take to update certain things i.e. windows, gutters, carpet and possibly siding.) is around the 50 to 55 ballpark. The property next door is a 3 bed 2 bath rental and recently sold for 87k.
I wasn't aware of "imputed interest" i'll look into that asap.
If I only carry the contract for a maximum of 5 years there must be a way to avoid all these taxes ( supplementing rental income with my own to speed things up). I'm sure i'm not the first person to say whats with all these taxes... with all the people involved (and making money) in real estate, there must be some loop holes i can find.

Death and taxes. The only things that are a sure thing :roll:

Thanks for the quick feedback !
I will take your advice on that... My plan is to use this first deal as my capital for future opportunities. This website has more information than I could ever read... I'm trying to take in as much as I can.

Here's the situation:

I'm a 24 yr old, recent college graduate who landed my first professional job. I have put away around 10k for my first investment property. A close family friend has agreed to sell me a duplex located within a 1/4 mile of a large university in my city.

The property: Duplex one bedroom renting for $350 a month and the other unit being a 2 bedroom for $450 AS IS.
The current owner lives over an hour away and bought the property to give her 2 sons a place to live while going to school. They both have recently graduated and moved on. Now that the property has served it's purpose they are eager to sell and knowing I was actively looking for my first deal I was the first call.
I've gotten comps in the area and I'm getting the property about 20% lower than what the neighborhood average is.

My plan: At this time I have practically no bills and I was going to invest my 10k into upgrading the units to get more cashflow and pay off the property more quickly while supplementing that income with my own. Realistically other units in the area rent for 600 - 700 for a 2 bedroom. 400- 450 for a one bedroom. If I could stay in that price range and provide and extra 10k a year to pay off the property within a maximum 5 years. (Note: Units are within walking distance to the university and also offer off street parking which is an issue in that area.)

The deal: The owner, being a close family friend, has offered to finance the deal for me practically with no interest as long as I manage the property, seeing as her and her husband live an hour away.

Questions I have:
1. Should I enter into this deal myself or would it be benefical later to create an LLC ?

2. Is it possible to have a land contract for a certain price and when the deal is complete and the title work is done list a lower selling price to save my family friend from capital gain taxes ?

3. Anything in general I should be aware of doing this type of deal?