All Forum Posts by: Nada Mohamed

Some main reasons I have found amongst tenants are: poor credit, inability to save down payment, aversion to the commitment of buying and the responsibility it entails, ability to pick up and leave once lease is over without having to worry about selling first, and fear of being unable to properly maintain home and repairs (roof replacement, a/c and furnace issues, flooded basements, etc).

Nada

Definitely financing, thank you Justin, will message you.

Nada

Hello all,

I have been investing in the Cleveland, Ohio area for the last 7 years - it is a great market, but I am looking to diversify. I will be in Florida in about a month for a week and would love to do a little research now so that when I am there I can pick out where I would like to invest and possibly, if fortunate enough, find a property to invest in. I am looking for a property that can serve as a good vacation rental - would be popular year round so that I won't have to fret too much about vacancies - and one that I can use myself when I visit the area (my family and I go there once every one or two years - love Naples, Orlando for the kiddos, Jacksonville, Fort Lauderdale, Miami), a community that is still growing and a property that can cash flow as a vacation rental and appreciate in time as well. The Community's input would be greatly appreciated!!

Nada

Hi there,

I don't personally charge an application fee, but use a service for background/credit check that does. Want to make applying for one of our rentals as easy as possible.

Nada

I did it personally, totally worth it not only for access to the MLS, but the ability to see exactly the houses that I want and on my own time too. There are other benefits too such as commission on your own deals or forgoing commission as a negotiation tool to lower price.

Nada

Without an LLC or corporation to shield you from personal liability, you and her together will be personally liable for business debts and business related lawsuits if those should occur. Personal liability entails your home, other personal assets, your bank accounts. As you already know, in a community property state (CA), you two own everything equally (as long as the property was not purchased prior to marriage, or was inherited or gifted to you personally). Without some form of corporate entity, both of you are jointly responsible for your unincorporated business debts, and can be jointly held liable for business law suits as well. What's stopping you from creating an entity to protect/shield you?

Nada

Hi Matt!

It is a huge step indeed. I have been down this path, and do not regret it. Most important thing though, since you, as I, have a family - is to make sure you have a steady/secondary source of income to help - sounds like you already may have that in place. At least now it will be easier for you to qualify as a "real estate professional" in accordance to the tax code and your income from investing in real estate will no longer merely be passive income - this tax strategy on its own is a huge financial benefit. You are lucky to have a supportive spouse, I do too! This, you will find, will be one of factors that will help you to keep going, a constant source of encouragement. Best of luck!!

Nada

Hi Mark,

You have picked a great place/time to invest! Your MBA should prove a useful tool for you to properly assess market factors. I would recommend finding a realtor that is investor-friendly and seeing what is out there before you pick any one specific area. There are a lot of great opportunities here and, depending on your strategy or strategies, you will determine where and how to invest. When I first started 7 years ago, I had a pretty well written out strategy that, to me, was foolproof - it was great, but nothing turns out exactly as it is written on paper. The thing that has helped the most is getting out there at looking and experiencing the market and what is available. If you are looking for an investor friendly realtor, I would be happy to help you get out there and take a look at what is available!

Nada

How long did you hold the property/how long did it take to rehab? Have you ever considered renting out for a short period and then selling so that you can be taxed at a lower capital gains rate (assuming it took less than a year to rehab)? Do you use your profit for a 1031 exchange immediately after sales? I am constantly on the lookout for good tax strategies when it comes to myself and my clients. I have never rehabbed on such a large scale because I believe I would be inclined to sell it instead of renting it out, but then I risk being taxed at our ordinary income rate if I cannot properly set up a 1031 exchange in time (never did this yet). I hate losing profit, tax at ordinary rate is a killer. Good job!!

Nada

I'm sure if you called the court in your jurisdiction that they would tell you. Alternatively, you can call a local attorney and ask, you don't have to hire them because you ask a question :)   they would simply answer  - it's an easy question, they won't expect a commitment.

Nada