All Forum Posts by: Matthew Cervoni

@Dan M.the savings rate is going to provide me the capital to go full-time with my own CPA firm (currently I help real-estate investors on the side) and to buy my next house hack! I plan to hold this property as a long-term rental when I move out. 

@Bradley Sriro thank you! 

Investment Info:

Single-family residence buy & hold investment in Nashville.

Purchase price: $255,000
Cash invested: $2,500

Before I started house hacking I was paying roughly $1,000 in rent. Now I own a 3 bedroom house which I was able to get into for just $2,500 down using a program in TN where you can get a $15k interest free loan towards your downpayment & closing costs if you meet a certain criteria

The rent is $650 per room, which ends up being $1,300 in rental revenue per month. After my expenses, my true cash flow is - $250. Once you factor in my rent savings, it becomes$750 per month! That is a 360% ROI!

What made you interested in investing in this type of deal?

I am an accountant who does bookkeeping & tax planning/filing for real estate investors. I figured the best way to understand the business was to have first-hand experience with real estate and then apply my tax knowledge. So far this experience has helped me better understand my clients and increased my savings rate to 65%!

How did you find this deal and how did you negotiate it?

I used the MLS and an agent to find the deal. We were very patient and looked for almost a year before finding a house that fit my criteria with motivated sellers.

How did you finance this deal?

Conventional loan - 5% down

How did you add value to the deal?

The property was turnkey with very few repairs needed (if an accountant can fix something, I consider that minor). I think it is a myth that in real estate you always have to buy a property that needs repairs. If you can negotiate a good price that fits your investment criteria, it only gets easier the better condition the home is in!

What was the outcome?

65% personal savings rate
First-hand real estate experience that was manageable with a full-time job & side accounting business
I can better serve my clients as I build my own real estate portfolio to understand their challenges
2 new friends (my roommates)

Lessons learned? Challenges?

The two biggest lessons learned was: 1) Real estate is not all about buying properties in bad condition and fixing them up. If you don't have the stomach for that be patient and find a turnkey property that fits your investment criteria and you will still have an amazing portfolio. Less headaches & solid returns. 2) If you are house hacking in a single-family home, you are just as much selling yourself as you are the property when looking for tenants.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

Great work Eric! This post is dense with amazing information for anyone looking to do their first BRRRR

Hello BP community! 

Don't you hate those typical cheesy financial advice radio shows / podcasts? Where some old guy who is a financial advisor just tell you to avoid all types of debt (even in real estate) and to invest only in a diversified stock portfolio - which is exactly their business. Yeah, you're probably picturing the same show as me...

Well, that is why I love the Bigger Pockets Podcast. If you are not already listening, I HIGHLY encourage you to do so. I know that I started at 1... then 2... then 3... (you get the picture). The show, combined with books from this site, have helped me gain so much confidence that now as I hunt for my first deal I feel that I have patience, perspective, and knowledge that I would not have otherwise had - and it is going to help me find the RIGHT deal (you know the one where the numbers work instead of using emotion to make the decision, thank you David Greene.) 

But... there are only so many hours available with Brandon Turner and David Greene (and Josh Dorkin on the older episodes). So, as someone with a very strong entrepreneurial itch, I have had my own podcast for almost 1 year now! It is called The Healthy, Wealthy, and Wise Podcast - check it out here: https://www.healthywealthyandw...

I talk to real estate investors & entrepreneurs, cover personal finance, and I even talk about archery (the new thing I am learning) and the things that financial freedom can allow you to do. If you're interested check it out, and I'd love feedback if you have any! Finally, I am sure some of you would be good candidates to come on the show, so if you're interested doing a practice run for when you make it on the BP podcast, send me a message! 

Thanks BP Community! 

-Matt

Yes for sure 99% of BP members do not work in public accounting. The post is really just a joke!

Congrats on owning your own firm though, that's the way to do it! 

@Syed H. I hope you feel that it is worth the service though!

@Matt McMacken 😂

@Matthew Cervoni

To All,

I hope this was received as a joke because I was just kidding. It would be great if they had it after October 15 so I could go!!

I am very happy BP talks so highly of my profession and as I gain more experience I hope to work with some of you in the future as I am the best kind of CPA, one that also invests!

Hopefully this thread magically falls onto Brandon Turner’s phone and he picks a date that works for tax professionals for BPCON 2021 so I can network with all of you!

-Matt

After listening to the recent episode of the BP podcast (370) with Amanda Han and Matt MacFarland, it is evident that Brandon Turner and David Greene LOVE a good chat with a CPA. HOWEVER.....

BPCon2020 is on October 5-6. This practically eliminates the possibility of any young CPAs attending no matter our level of interest in real estate investing (ME) because of extension tax returns that are due on October 15. 

So it begs the question, does BP love CPAs, or hate them? haha!

Thank you!