All Forum Posts by: Liz Ridgway

Looking for my next primary residence with an investor's eye in case we move away and convert to a rental. Since I have a spouse who is not interested in live-in flips, I will be looking at already renovated properties or cosmetic fixers.

We have no timeline so I am trying to get into as many homes during this Seller's market to educate myself on all of the variables involved with a historic home. Due to the high desirability of The FAN and Museum districts, I do not expect to find a 'deal' (but if you just happen to have one laying around, I am all ears!). I am more focused on which blocks to avoid, any lessons learned with your personal renovations or transactions, and what I would need to consider for a rental. 

The proximity to VCU is a bonus for minimizing vacancy risk. As a primary residence, we would likely still rent out at least one bedroom if there is a market for that, student or otherwise. Have always rented to pet owners for a premium in the past. Are families attracted to rent in this area? 

Would love any insight you natives and market experts can provide. Thanks so much!

@Eamonn McElroy - thank you! I had a feeling I was oversimplifying the calculation....this was the most helpful response yet. (it only took me a few months to reset my login to see it LOL)

I am a little late to the thread, and you may already have your plan in place.... but I'll add to benefit any others that may also be asking this question.

I have been working for an STR management company for nearly a year and I would say that the choice is very personal. Something I haven't seen mentioned here is that the customer service side of the business can be difficult for some home owners. The home owners that feel personally attached to the homes they rent out are the ones that I think benefit the most from professional management. Guests will do the darnedest things, and it is all part of the business. Furniture will be broken (Destroyed), keys will be lost, codes will be forgotten at the wee hours of the morning, reviews will be left that are totally subjective and barely relate to the actual experience of staying in the house....the list goes on.

There are so many great technology elements that can help you manage the physical rental. These are listed in my personal order of importance.

1. Electronic Lock System (WiFi enabled so you can set codes remotely)

2. Outdoor Security Cameras (Nest, Ring Doorbell, etc) - Splurge for the full video coverage. Your video footage is gold when you need to submit claims for guests not following your house rules or exceeding occupancy/having a party.

3. Noise Detection

4. Smart Thermostat (lock it to run at a pre-determined range)

5. Occupancy Detection

Basically, automate what you can and maintain a thick skin for the rest, and you will be just fine. 

Good luck!  Liz

I might be relocating to the Williamsburg, VA area for work this summer. Currently in Nashville and we are in a position to buy. We are buy-and-hold investors focusing on live in rehabs and converting to rental / BRRRR investors.

Obviously, Nashville is a hot city which means demand for housing but prices are high.

Anyone who can provide insight on the Williamsburg, VA market? Anything to consider regarding SFH rentals?

We could also shift strategy to living in a house we love while investing in student housing around W&M.

Hi Andy, sorry for the late response! 

No plans to sell. This one will be held ‘forever' since we have family in the area and can see ourselves potentially living in that house again in the future. Once the note is paid down, this house will be our savings account to be tapped with HELOC to access equity as needed.

I just realized the Sec 121 exclusion is the capital gains exclusion for primary residence and unfortunately, that does not apply for me. I am only selling the condo which was purchased as a primary residence in 2005 and converted to rental in 2011.

I haven’t found any tax strategies to help minimize my cap gains tax. I believe the tax basis is the value of the property at the time of conversion. Unfortunately, that was at the bottom of the market and my basis is $90k below the purchase price. 

The only potential solution I see is a 1031, but if I buy this year, it will be a personal residence. Not sure if a 1031 can work on a multi family house hack.

This condo property is a loser and now that I am right-side-up, I’m going to sell. Painful but important lessons learned on this one.

This is so helpful, thank you! I also appreciate the direction to Sec 121 and will read up on that too.

Thank you Lucia! I can’t accept the congratulations yet because all I have accomplished so far is leaving a lucrative job 😂

After much research, I think I have identified a job that would be the ideal transition using my skills. I wonder if anyone is familiar with TN Homebuyers? They have several Project Estimator/Project Manager positions available. I expect their volume is high enough that I could get tremendous exposure to various flip and rehab scenarios. A personal goal is to build my estimating expertise and my contractor Rolodex so that I have great resources when it comes time to do my own projects.

I am reading BP’s Tax Strategies book and I wish I had read it sooner. This should be required reading for anyone who owns RE, even if only a primary residence.

My question pertains to passive losses. Due to the income phase out for claiming passive losses, I have years of carryover. I understand these can be claimed when the property is sold. However, I also read that the sale must represent the sale of all of your investment RE.?

Specifically, I am selling a condo in FL owned since 2007 currently worth about $120k. In 2018, we converted a SFH from our primary residence to an investment property. This home is worth $275k. Does this impact my ability to claim all remaining passive losses from the condo?

Thank you BP!

Hi Christopher- I moved to Nashville with my husband in June and we are currently renting, but we also hope to find a great house hack. We are specifically looking at Murfreesboro since there is no way we want to pay downtown prices. 

I am personally reviewing listings on the MLS, driving around neighborhoods, and have met with a realtor who is also an investor (he had never heard of BP so I am sure I got some brownie points there!). I'm also running the numbers on current listings so I can quickly and accurately evaluate deals when ready to buy.

@Tony Crabtree, how long have you been living/investing in Murfreesboro? Do you have any insight on how the area compares to other suburbs of DT Nashville? I’m specifically curious about tenant pool and what your vacancy #s are