All Forum Posts by: Megan T.

Real estate taxes at $6,400 on a million dollar purchase price is really light for palm beach county. Talk with local tax counsel to see how your taxable value will change after acquisition

You should think about doing a distribution waterfall rather than a 50/50 split. With a distribution waterfall, the better the property does the more money you take home. This is also how other larger real estate shops will be calculating his return on a $25M investment.

If he has $25M in equity he is looking to place, that is approximately $100M in purchasing power (75% LTV). This allows for huge economies of scale compared to SFRs or fix and flips. I would not start small

If you are looking to attract students just check out the Later Gator routes (late night bus that takes students home from the bars). These are the areas a majority of students live in. 

http://go-rts.com/images/schedules/next-semester/l...

If you are located within walking distance of the stadium, parking revenue can be pretty hefty

For $2,700 total, definitely pay off both. This will up your credit score, help you get a better mortgage, and not be hurt by your DTI ratio

Everybody assumes that the W2 job you get after graduation won't be in real estate investing, but it easily could be if that is what you are interested in. I graduated undergrad two years ago and I have worked for two different commercial real estate investment firms as an acquisition analyst.

I look at real estate investment opportunities all day long. Only instead of SFR or duplexes in my hometown, I look at 300+ unit apartment complexes across the country. My average deal size is ~$30M, but I have underwritten deals as large as $500M.

IMO: Finish your degree, get a job in CRE, learn from the people with portfolios in the billions, and use that W2 income to leverage your own real estate investments

Undergraduate degree in Finance with minors in Real Estate & Entrepreneurship

Basically a degree tailor-made for real estate investing

My formal education has allowed me to work for large commercial real estate investors where I have done over $500M in acquisitions in a little under two years since graduating

Thank you @Jo Lyn Cornelsen

That is exactly the feedback I was looking for!

Hello Everyone

I just submitted a contract on my first deal. This would be our primary residence while we fixed it up and then we would rent it out in the future. 

The house is currently rented out as a sober home (for people who have recently gone through rehab to transition back into society). The home is rented through the end of July. We are looking to close on August 1st as I do not want to be responsible for removing tenants under a lease I did not write. 

My question is, what risks do we run with delaying closing three months? How can we ensure that the current occupants will be vacated prior to closing? Also, if anyone has any experience with sober homes I would love to hear it.

Thanks!

I am in a similar situation to you. Engaged, two incomes, young professionals looking to house hack. I have also noticed the areas we most want to live are pricey. But a little food for thought, people similar to you would make the best tenants, so while the price tag is a bit higher you will also be attracting more quality tenants. 

A little Austin advice, make sure you are accounting for a tax reassessment with your analysis. Travis county and the surrounding counties have been using a heavy hand with their tax reassessments. If they can find your purchase price, they will hit you with that value in the following year. I work in larger multi-family acquisitions, but I assume this would trickle down into the smaller MF and even single family.

As more and more adopted dogs are pit mixes, this clause was included in my most recent lease and is very landlord-friendly for mix-breed dogs:

Owner Shall Determine Breed: Regardless of resident’s

representation as to the breed or classification of any animal,

resident agrees that owner shall make the final determination as

to the breed or classification of resident’s pet or animal in

owner’s sole and absolute discretion. Restricted Breeds shall

have the broadest possible meaning, and includes, but is not

limited to, any animal displaying physical traits or characteristics

of any restricted breed animal, whether by observation or by

standards established by the American Kennel Club, or other

applicable association, or defined by any law, statute, or

ordinance.

Furthermore, at every rental I have ever lived in with my dog I have been asked for a pet deposit, proof of vaccination and a picture of the pet. These are very common things that you can easily ask your tenant for. The proof of vaccination sheet is typically from a vet and includes the pet's breed, age and weight.