All Forum Posts by: Michael Kotas

Thanks @Denice S.. I grew up in buffalo and visit 3-4 times a year but will not be moving back in the near term. My mother's house is in fact a Patio home. No intention to AirBnB at this time. 

Unfortunately, at the end of the day I need a Property Management company to make this work out. My friend recommended the following: Buffalo First Investors, Bellavista group, and Regent Companies. 

@Andre' Arceneaux 

Hi Andre', I'm a dividend pig as well but concerned that I'm not diversified enough. Similarly, I'm looking at RE as a potential to diversify assets. I'm at point where I have an opportunity to purchase the other half of a Willed SFH from my sister at a fairly low acquisition price (about 150k).

My contemplation has been the loss of DGI earnings (although I'd only be pulling out about 50% of my current stock portfolio and not touching any of my 401k). Burdening my potential RE property with 100% of my DGI+CG opportunity loss would require me to price the property at about 75% above Break-Even which is on the higher end of the market. 

I'm debating about pricing at the 40%-50% margin and taking part of that money to add back to my DGI and part to invest back into future RE.

Out of curiosity, what is your asset class split? 

Thanks for any insight,

Mike 

Thanks for the Info @Otis Gathing. I'm similarly looking for any Atlanta area RE gatherings....

@Matthew G.

@Karen O. beat me to it....get all your other ducks lined up as she said first....If you don't need to go to a bigger house then don't. I'm in my early 40's and am looking to down size but that's not my first priority. We bought a relatively large house and it's almost too big. (3800 sq ft for a family of 4) however we've paid off our CC, maxed out our 401k, HSA, Emergency Fund, Life Insurance, Will, and started our DGI. That took me about 4 years. Now that I've built up some investments in a non-qualified account, I'm looking to diversify a bit into RE and have access to a home that I could use for that potential.

We're debating about making the plunge into RE. We think we're going to start small. SFH that we've partially inherited. Set up an LLC, look for a Prop mgmt company (due to long distance) and then see how we learn from that. I'm not quitting my day job (the earliest would be 8.5 years from now to claim my pension and retirement benefits) but we will look for our 3rd source of income and take the long approach to transitioning out of corporate world.

Too me, this is a Marathon, not a Sprint

Good Luck!

Thanks @Scott Smith for the information....

We've eliminated the idea of trying to part-time rent it and part-time use the house. We've boiled it down to either full-on Rental or sell-it outright.

The market the house is located in is Buffalo NY, so I need to do some research on the location and pricing to validate if the numbers work or not...

Yes, we’ve been contemplating the pure sell option.

The alternative we’ve been discussions is to rent this out short term (1-2 years) while we purchase another 1-2 properties in the area as we potentially move into the original property

You’re absolutely right that we should leave emotions out of it, I just fear the future cost of acquisition will go up as neither my wife nor I are big into flipping

I believe burdening the cash flow with a mortgage would lead to about a -11% cash flow. My best cash flow option is a long term (read: year-long) rent for positive cash flow. Our two cons is a) ties up a good portion of my liquidity and b) prohibits my family from using the house during some of our vacations which obviously has an emotional tie- in to my decision making

Hi all,

I'm a newbie and have been lurking on the boards for a several years but now have a real opportunity that I'm in need of some advice.

Here is the situation:

My mother recently passed and has willed her 2 bd/2 ba house to my sister and I. Neither of us live in the market. My sister wants to sell while I'm contemplating keeping it and renting it out. The house is in good condition, ~ 20 years old, and but in a quiet suburb (20 minutes away from some major attractions).

Here are the questions:

- I can afford to buy my sister's portion but can I / should I put a mortgage down on her side? (will a bank even allow it? would I need to set up holding company?)

- Due to the long distance and the HOA covenants, I'd have about ~19k in annual operating costs when I include both mgmt service fees and burden my ROI with the opportunity cost of not investing the stocks. I'd like to purchase more units the future and ultimately move back in the next 5-10 but felt this might be a good starter rental home We think we'd get ~5% ROI (similar to stocks). Does this make sense?

- We'd like to potentially spend some time in this market during the course of the year which lends us to using AiRBNB however we'd probably make better ROI on a long term rental. Any opinions on one way or the other?

I'll keep re-searching away on the boards but wanted to get some details out for discussion since I'm not 100% sure where to start.

Thanks,
Mike

Thank you al for the warm welcome.

@Trexie E. @Ian Ippolito 

@Mark Nolan

@Dmitriy Fomichenko

Thanks,

Mike

Hi All,

Stumbled across this web-site while researchng a couple of different housing markets. Interested in diversifying my investment strategies with Real Estate investing a new area for me. Looking to learn and potentially target 1st rental property in 2017. Also want to understand crowdfunding places like crowstreet.

Originally from Buffalo, NY, but now living in Atlanta.

Thanks,
Mike