All Forum Posts by: Michael Hyun

I'm looking to buy a multifamily this year but I am trying to decide what financing to go for.

One of the most important criteria for me is that I can purchase something with 15% down or less.

If I target seller-financed properties, I imagine that I'd be dealing with a seller with plenty of equity and maybe is a bit tired of being a landlord.

The problem is that these sellers are NOT DISTRESSED. 

Everywhere on the news, people are talking about multifamily distressed owners. But if I'm targeting seller-financed sellers, I'm not really targeting distressed sellers.

For example: I came across a seller finance deal for a 1.1M 6-unit MF property, but the owner wanted 100k over what I thought was the market value. 

Does it make sense to pay a premium for cheap interest rates with seller financing, or would it just be better to put 25% and forget about my 15% criteria and just go for distressed sellers and just get a commercial loan. 

What is your thoughts on this?

Looking for lenders who are doing HELOCs on investment properties! 

Better mortgage quoted me 10%+ variable rate, but I want to know if anyone else has had luck - seems like more lenders are doing HELOCs on investment properties right now!

Recommendations please!

This is probably my favorite forum post on bigger pockets OF ALL TIME - because I am a W2 earner and my wife is a REP. 

I was hoping to invest in syndication this year and use the K-1 losses against my W2 income by grouping all of my rental activities with the syndication losses. (Aka - "piggybacking" my K1 losses on my rental property portfolio)

I've probably read this thread 5 times, but it's too technical to understand.

Assumptions:
1. My spouse is a REP (1099 - Real Estate Agent)
2. I am a W2 earner
3. We materially participate (500 hours) in our small portfolio of rental properties this year
4. I invest in a syndication and receive a K-1 showing a 100k loss

Question:  What additional steps would I need to take for me to be able to use my 100k loss from my K1 and use it to reduce my active household income?

@Brandon Hall
@Ashish Acharya
@Michael Plaks

PS. I've worked with @Ashish Acharya as my CPA for the past couple of years so I could just ask him but I'd like to have a response on this public forum as well to help out others.

Hey all!

I'm looking for new construction properties offering rate buy-downs. 

I'm looking in Dallas, Fort Worth, San Antonio, Austin, and Williamson County (above Austin).

I'm open to other areas but mostly looking to buy and hold - I'm not looking for any amazing cashflow, as thats hard to come by these days. 

Does anybody know of any builders offering something like this?

Thanks!

I'm looking specifically for a property that has high building value, so that I can claim a lot of bonus depreciation this year and generate a large paper loss in my rental property business this year.

My wife is a Real Estate Professional, so we plan to use these losses against our taxable income.

Right now I'm looking for something like a 4-plex around 1M Purchase Price, with a building value of 80% or higher. That way, I can generate a large amount of passive losses and offset some of my W2 income.

One big factor is that the 1M of real estate bought needs to at least be "Breakeven" - meaning it doesn't negatively cashflow. 

Anyone in a similar position?

@Ali Mahdavi No, I'm no longer looking in that market, I personally don't think I can make the numbers work there with the current conditions. 

 Hey Lane!

We actually spoke a while back during an intro call. You're definitely the resource I turn to when I wanted to learn about syndications. I've been watching the deals that you put together, and I appreciate your honesty when it comes to the current market conditions. 

At the end of the day, I want to grow my net worth as fast as possible. If I invest in syndications, REP status becomes almost useless for me - as I can't use passive losses from syndications to offset W2 income. 

So then, do you suggest that I put all my savings into syndications and start to generate passive income - and just forget about saving any money from federal income tax using REP status?

Ideally, I want to utilize a combination of both the REP status strategy and the syndication strategy. I'm sitting on 250k, and I want to know what's the best way to split this. 

Perhaps 15% down on a 1M property ($150k), and then (100k) into syndication?

I'd receive maybe 200k in passive losses I can use against my W2 income from the 1M property, and then I'd be able to generate some passive income from the syndication. But @Lane Kawaoka, ground-up developments don't take Bonus Depreciation in year 1 - how would passive losses work for ground-up construction syndications?

I'm paying 100k+ in federal income tax, so that seems like the lowest hanging fruit in terms of growing my net worth - by using REP status (my wife) and Bonus Depreciate rental properties that I materially participate in managing.

If I can save ~80k in federal income tax for the next five years, I'll have grown my net worth considerably. 

The only problem with this approach is that in order to get sizeable passive losses, I'm looking at properties that are $500k-$1M. 

Nothing over $500k+ seems to cashflow unless its MFH, or MTR/STR.

Currently at a cross roads - would love some feedback on my thought process.

My strategy for this year (2023) is to:

1. Buy two 500k multifamily units (or one 1m multifamily unit) - ideally they break even. 

2. Cost segregate both properties and generate close to ~150k in passive losses, ~35k in taxes in 2023.

2. Use Real Estate Professional Status to be able to use those passive losses to offset my W2 income. (My wife is REP, and I am W2).

Plus, I'll have two residential multi family properties that cashflow a little bit - and then I can refinance in the near future to boost that cashflow number up. It is a plus if I can get a 2-1 buydown so that I can achieve some cashflow before I refinance in a few years.

Anyone have any suggestions on where I can buy some residential multi-family properties at ~$500k, or $1M that will breakeven/cashflow??

Yeah, I'm mostly looking for an 80% LTV HELOC - I actually found one so far but not any major banks or credit unions - only smaller banks.

How are people using the equity in their homes? I'm looking for a HELOC for my investment property. I'm looking for about 80% LTV, and my mortgage is about 70% LTV, so looking to pull out about 10% LTV or ~100k.

All major banks are not offering and same with most credit unions. Some smaller banks are saying okay, but only at 60% LTV. 

Anyone know a place I can get a 80% LTV HELOC for my investment property?