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All Forum Posts by: Michael Myers

Michael Myers has started 14 posts and replied 57 times.

@Jacob Swihart usually a leasing agent fee will be 1 month's rent. I've got my agent that I can recommend who does leasing if you want his info. 

I haven't actually used property management in Houston, but if I ever do I was thinking of testing out Emerson Property Management (@Cameron Tope commented above) as it seems like they have good reviews and good pricing.

You should be able to figure out your future non-homestead taxes by looking at your current tax bill. There should be a line on there that shows what the homestead exemption is. You would then do the math to remove that exemption and see what the resulting yearly tax amount would be.

Since it's your first time being a landlord, it might make sense to utilize a property management company or agent to find and screen a good tenant. As @Lane Berry said, it can be very costly to get a bad one. If you want to do the month-to-month landlord duties to save on recurring management fees, there are companies / agents out there who will list the property, screen the tenants, and place a solid tenant, usually for about 1 month's rent. 

I've got both a property manager and agent recommendation and would be happy to discuss, just shoot me a DM.

Post: SDIRA With Check Book + UBIT Tax Consequence

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

Just a couple notes from my side: 

I don't believe you can lend from your IRA to yourself to flip a house since you are a "disqualified" person, or whatever the term is. Not sure what @Marty Sprong had in mind, maybe lending on someone else’s flips? I do that with my IRA, definitely a good option.

Technically you can probably do a handful of flips with an IRA, but there's some fairly steep UBIT and the potential that if you do too much it's classified as "active income" which is a no-no for an IRA. Probably best to steer clear.

A syndication would likely trigger UDFI (unrelated debt-financed income) at some point in the hold period, unless they are purchasing the asset without a loan (highly unlikely). Usually the first few years you'll get a paper loss, so no taxes to pay, but once you show a gain you'll have to pay. From what I've heard / seen, it doesn't come out to a lot, but it's a bit confusing to try and figure out yourself. I have a white paper about it from my IRA custodian that lays it out pretty clearly, I could send it your way if you shoot me a message with your email.

Post: Looking for recommendations on which city to move to

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

Do you have any more details on what kind of area you are looking for? Houston is a huge place with a large variety of lifestyle options to choose from. You can pick from city living to country living and everything in between. I lived in Greatwood on the Sugar Land / Rosenberg border for a number of years, and it was a great family place, but I know there are plenty of other areas that offer similar community feel, amenities, ease of access, etc. you just need to be able to narrow them down with some additional criteria!

Post: Looking to connect with GCs and Lenders

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

@Andrew Postell is always a great resource for discussing loan products. He’s in DFW, but I’m sure he’d be able to help you out or at least connect you to someone in Houston.

Post: What to do with my (STR) Cabin outside of Houston

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

My suggestion would be to jot down all the activities that are taking up your time, then start researching how other STR operators have solved those exact problems. There's plenty of educational content out there (books, podcasts, YouTube, forum posts, blogs, you name it!) showing how others have overcome basically every conceivable obstacle, just need to find the ones that work well for your specific situation.

From the description you gave it sounds like a great place with some good family history, so it would be a bummer to have to sell. Honestly being only an hour away is pretty ideal to be able to slowly transition to full hands-off operation through automations and having local contacts for on-site work, just gotta start testing things out and see what works best!

Good luck!

Post: Buy Note at a Discount

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

When buying a note at a discount (e.g. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures? It can't show up on the 1098/1099 since it wasn't charged to the borrower… so what do you classify it as? Just regular business income? Capital gains of some sort?

Post: Private Money in Houston, TX

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

Just throwing it out there for anyone searching here in the future... I do "real" private lending in the Houston area. I take a fairly personal approach and like to build a relationship with my borrowers, but the fees aren't ridiculous and the interest rates are reasonable 😊 reach out if you want to discuss. 

Post: New Investor in Houston, TX

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

@Andrew Tran Welcome! I also do flips in Houston and lived there for about 6 years in the past. Great spot to get started and plenty of awesome people to help you on your journey!

Post: Aspiring Houston Investor

Michael MyersPosted
  • Investor
  • Pleasant Hill, CA
  • Posts 58
  • Votes 21

@Alvin Almonte Welcome, glad to have you! Tons of knowledge and great people here to help along the way! Houston is a great spot for real estate (as long as you can avoid the flooding!), so you picked a good spot to get started!