All Forum Posts by: Matthew Fitzgerald

Thanks, sounds like until I have more then a few properties I'd be okay with a basic checking account.

Thanks everyone..... one concern I have is how can I limit tax liability with the heloc. I guess my question would be if pay cash (heloc) for a property. Then refinance into a conventional mortgage a few months later would the cash I get to pay off be consider a draw or income? Matt

Hey all we are closing on our first deal and I was wondering how to set up the accounting to benefit me the most..... Some info I think may help... We are buying out of state, so we are using a property management company. We are buying with a heloc against our primary residence. Also I'm going to get an umbrella policy. We are looking at only small multifamily 2-4 units. I hope this info helps. Thanks Matt

Brent Coombs after double checking my math my calculator did have a 25%dp, so my PI payment would be closer to 900 range. Your thoughts?

Thanks @Brent Coombs First I figured at a 5.5% interest rate with a 20 yr am it would be in the 750 range. And second from what I gathered the current owner hasn't raised rents on some of the longer term tenants. I believe I can get roughly 3800 per month. I haven't seen all units, so I'm not sure what kind of work it will take to get units there.... I'm sure I'll have a better idea after an inspection.

Hey BP world put an offer in on my first property. Just wanted a second set of eyes to take a look. Found an off market value add deal in a B- neighborhood with a C+ property. The price we offered is 150k against the sellers 165k. It's a 6 unit, 4 1/1 and two studios. Rents total 3150 and 5 are below market. Monthly cost 1742 ( tax, insurance, PM, vacancy, cap ex, repairs, and utilities.) This total is based on sellers numbers. We are using a HELOC to pay cash for the property. I figured once we get a mortgage that will add another 750 to total. Making us roughly 600 per month. Once we get rents to market value we should be getting 200-250 per door. We want to hold this property long term. I could use your thoughts and input. Thanks again.

Thanks everyone for the responses..... It's giving me a lot to think about. It's seems like the consensus is to find a quality RE agent/ PM group. Doing my due diligence really getting to know a specific market. Is the start to REI out of state.

Thanks James Wise, I have spoken with a PM group in the area and they did explain this to me. They did put me in contact with a realtor on their team.... hopefully in the next month we can lock a property down.

Thanks for the reply.... I'm in the process of building that team now. I'm looking at a RE agent and PM group... would have the CPA and attorney in place before purchasing a property? Also if the PM group recommends an attorney or contractor would you use them or find your own? Thanks again

Hey BP world I'm a first time investor and I live in Southern California. I have been actively looking for properties here for about 6 months. I'm not having much luck, don't get me wrong there is plenty of inventory; single family homes and multi. The problem is the price of everything.... the rents won't cover the mortgage or it's priced so high for such a small return I don't want to touch it. Another thing I'm taking into consideration is the length of time I've been searching, I know six months is relatively a short period of time...... That being said, I have started looking out of state. I have found a market I'm interested in..... Cincinnati OH. The price's of the 2-4 units are well within our price range, and I believe I can get the return/ cashflow I am looking for. I know there are many challenges of a long distance landlord, I believe I can make it work.... I'm open to anyone's opinion, advice, and input Thanks