All Forum Posts by: Mackenzie Grate

I agree. Opportunity sounds great but definitely take time to work out a written agreement as to which partner is responsible for what and how you will get paid out. Are all the units going to be long term? Are there any renovations that will need to be project managed? Are there any major repairs coming up that will need to be overseen? If so, who will fund those? Develop an exit plan too and put it into writing. I'd also revisit the conversation of how you will maintain your friendship should anything go wrong. Take your time and spend a lot of energy setting up the partnership because in many ways that will be even more important than the actual deal.

Also, most properties can be managed remotely now-a-days. Your wife may not need to quit her job, unless she wants to of course. But there are so many online tools and VA's that can help reduce the actual workload for her. She should do a deep dive into that work and structure that out first before taking the leap too.

Good luck! So exciting! What an amazing opportunity! :) I'm rooting for you :)

I'm not sure about Poughkeepsie, but I know Kingston has traveling nurses. Some have stayed at my friend's airbnb. That may be worth looking into as well.

Congrats on placing the offer and getting started! I'm rooting for you! :)

I agree with Trevor and Justin. I bought my first investment property in my name and then switched it over to an LLC. Looking back, it absolutely wasn't necessary and was more of an expense and hassle than it was worth. You have to file taxes for it separately each year and pay renewal fees. What I should have done, if I could go back in time, was just take out an umbrella policy to cover me. It's very easy to pierce the corporate veil of an LLC, especially when you are starting off and can't really afford a full time bookkeeper or awesome CPA. So if that veil gets pierced, your protection is null and void anyway. Speak to a real estate attorney, but I'd personally recommend just taking out an umbrella policy until you get more properties to make the LLC worth it.

Good luck! Sounds like you are off to an awesome start!

I agree. If it's rural, people prefer their own houses. Two structures would be more ideal than one upstate. Plus, then you could pivot to an STR if you ever wanted to (assuming it's in a town that has STR friendly regulations) But that does depend on your budget too and locality.

I also would recommend a basement. Usually when a feature is common in an area, like basements are upstate, there is a reason. You want the foundation to go below the frost line because of the harsh winters (although this winter didn't seem to be so).

I'd also focus on eco friendly, and cost effective appliances, mini splits, windows, etc.to help reduce the overall cost of operating.

There is a shortage of housing upstate so any development is going to be a solid investment as long as you run the numbers and stick to the budget.

Good luck! Excited to hear about it! :)

Google voice works well and is free. Definitely no need to spend on an extra line. But remember if you do, use your business account and it will be considered a business expense for tax purposes :)

I always use a broker so they can shop around. Keep in mind too, what people seldom mention, is WHO you work with is also important. You want someone responsive, organized and communicative. Rates matter, but also response time. They can make or break a deal depending upon how fast or slow they are.... so make sure you vet the actual person too. 

Good luck! You got this!

I think there is a compassionate and proactive way to respond to this situation. If this makes you uncomfortable, consider hiring a property manager because there will be many critical conversations that will arise when managing properties. It takes practice to have them, but not having them can lead to further issues down the road.

I would arrange for a "semi-annual" walkthrough to inspect the unit. This includes checking appliances, heating/cooling systems, etc. After I would put into writing that there was a noticeable odor. Depending upon what it is from, I would make a recommendation for them to remediate it. Perhaps they need to pay for a steam cleaning? Perhaps their pet is using the restroom inside when they shouldn't be? Whatever it is draft up a letter and send it certified mail of what the issue is and the steps they can take to resolve it. Make sure to include a follow up date a month later where you will be coming back to inspect that it has been taken care of. If they have questions or concerns, they will reach out to you regarding that. Document everything too with your inspection. Take photos if you see stains in the carpet, etc. You need to build a case in writing in the event that this leads to a worst case scenario of having to go to court. Hopefully it won't get to that and one conversation will just help them become aware and remediate the issue. However I always hope for the best but prepare for the worst.

Good luck! You've got this!

I agree. This is a red flag. Even if you had a fixed cost for his labor up front, are you getting paid a fix cost for your time locating the deal, completing all the lending paperwork and getting it up and running? If not, it's not equal. Plus this creates an unintended consequence of him potentially dragging out the time and cost and adding things to the list. I would be wary of this personally.

Many people go upstate for extended weekends. STRs that are close to towns but feel private tend to do well. Most people are leaving the city to get some peace and quiet. You have to be careful though. A lot of local towns are outlawing it due to a perceived shortage in LTRs. Right now is a really great time to buy though. Because of rates, competition is greatly reduced. You can probably find a place that works now with good numbers and then when rates go down in a couple of years, refi for great numbers. That's what I am doing. I also have a blog post that lists the different towns in Ulster and what their STR regulations are. I'm not sure I'm allowed to share the link here, but message me and I'll happily send it your way.

Good luck!

I agree with both posts above. Look past the short term. Buying a property is about reducing your tax burden, increasing your equity, gaining experience as a property owner, using leverage and locking in a lower interest rate for the long term AND ideally living for cheaper than you would. I'm not saying this is the deal of the century. That's for you to decide. But take a step back and look at the bigger, more long term picture. Will this benefit you in 2 years, 5 years, 10 years more than it would if you stayed in your rental today and paid slightly more?

Deals are often their worst in their first year... and they usually only get better from there barring some extreme circumstance.

Good luck!