All Forum Posts by: Matthew Cervoni

Hello BP community,

I have been researching this for a couple of days now and have found NOTHING on the topic.. then it dawned on me - I just need to ask you all! 

I am planning on doing my first house hack this summer/fall to get started in real estate. I have spent the last 6 months reading everything Real Estate book I can, listening to Real Estate podcasts (and doing my own ~ The Healthy, Wealthy, and Wise Podcast ~), SAVING MONEY, and networking in my local REIA to prepare for this. I love the idea of getting a duplex, although I live in Nashville and prices can be quite high so I need to get creative and have some other options.

One of my solutions is to house hack by renting out rooms in a single family home, vigorously save, and move out in about a year to make the home a full-time rental and repeat the process. I have been pre-approved for a 3.5% down FHA loan as well as a 3% down Home Ready loan. I know FHA requires you to stay in the property for 1 year, my question is how long do I have to stay in a property when using a "home ready" loan?

Thank you for your responses! 

I don't know for sure if this company works with Airbnb, but I know they have a very good reputation. They are called Property Management Connection, I'll pm you my contact. 

Does anyone have any experience investing in beach homes, specifically in the Outer Banks, NC?

Also any experience working with Twiddy? 

Any tips for someone wanting to break into this market?

One quick follow up, if I have no schedule E income in 2019 can I still deduct my real estate expenses this year on schedule E up to $25k? 

Hello @Nicholas Aiola! My plan is to close on a house hacking deal in 2020. Am I allowed to deduct on schedule C my educational expenses, mileage, and other expenses I incur relating to my real estate business this year to offset ordinary income (W-2) even if I have no business income in 2019? I will be actively managing the property which is why for now I prefer the real estate business to be considered a trade or business (schedule C) rather than a passive activity (schedule E). 

PS. I have documentation (receipt and explanation) for everything to back up anything I deduct.

I really enjoyed reading your post and your situation sounds like you are close to being able to retire. I would consider a couple things before you make the jump though.. 

1. What if a big expense comes out of nowhere? (Ex. you fall in love and have a wedding and maybe children along with that, you could need a major repair on your car or the home that is bringing you cash flow, and health issues can come up even if you are taking care of yourself.)

2. What is your motivation to get up in the morning? 

The reason I bring these things up is that you could really enjoy "working" and making money if you use your passions. The beautiful thing about your situation is you don't even have to succeed at first because you are basically financially secure. This will allow you to keep learning from mistakes in your new "passion" business. It will also help you continue to build wealth so that you can get that next home to rent out to tenants or cover the costs I mentioned above should they come up. 

I am 100% in agreement that you should do what you want with your day, and the corporate culture of being "cool" working 80 hours a week is just dumb. I would just proceed with a bit of caution and open your mind to some of the advice you've received on this page. I would say even if you did everything people have recommended, you would still be fully retired in the next 3-5 years and you would be in a much better spot than if you do it today. 

My friend has a house the he owns under a land contract with equitable title. Does anyone know if he should depreciate that house on his tax returns or can he wait to refinance and get the deed before he starts depreciating? 

Also, does anyone put their rental income/deductions on their schedule C instead of schedule E to get the Qualified Business Income Deduction? (Assuming you are managing the property and not paying a property manager.) 

Finally, does anyone write off educational expenses (real estate books, conferences, etc.) against their real estate income? 

Thank you @Keith Smith for sharing the information on Antioch. Being new to this area, little things like that are so helpful. I will definitely keep you in the loop of what I am doing, and I joined REIN last night if you are familiar with the group. 

Hello,

I am new to Brentwood and came here after passing the CPA exams to work for a local firm. I am learning as much as I can about real estate investing through the webinars and I am currently reading 'The Book on Investing in Real Estate with No (and Low) Money Down.'

My goal is to buy a multi-family residence (duplex, triplex, or fourplex) and do a house hacking strategy in the next year. I will probably be using a FHA loan since I am low on cash after paying off graduate school (debt free!), but in the meantime I will be saving as much as I can for a downpayment and other costs/repairs that are necessary when I close.

Does anyone have any advice for a new investor looking to do a house hack in the Nashville/Antioch area? Also, I would like to network with anyone who is interested and learn from your experience. Thank you all for any advice/help.