All Forum Posts by: Nate Sanow

 Nathan again with the gold. Thanks for sharing this 

Principal, interest, insurance and taxes, obviously. Property management if you won’t self manage. Some say, factor it in no matter what, but I am of the opinion that was a luxury of the market 10 years ago when everything had cash flow. For those of us still building in this appreciation meets higher interest rate environment, I argue PM doesn’t need to be accounted for initially but be cognizant of it… and then for me I look at minor capex and major capex as two different buckets. For example, if I do a new roof and hvac, I should be okay on those categories for the next 5-10 year’s minimum. These are major capex categories. Minor capex would be the toilet or sink having a leak, paying a plumber $150 ish to fix it. 

For me the minor capex isn’t a huge concern as it’s one of many tax write offs I look for, being self employed. The major stuff I do worry about and account for, but being that I focus on Brrrrr I’m usually updating that stuff anyway in advance and in practice I shouldn’t have a problem for awhile. 

Maybe this isn’t what you asked but I am basically suggesting do keep analyzing based on worst case scenarios most investors will tell you to do that. But also look for some ways to pull a trigger and make a deal make sense. That isn’t necessarily popular opinion but it beats sitting on the sidelines for forever and is my personal approach. 

Hey Taylor, would this change next year when bonus depreciation is 80%, and ultimately phased down to 0% in the next few years? Certainly can / will affect this strategy if so. I do hope they bring back bonus depreciation and my question isn’t for debate, moreso curiosity. 

 Gotcha. You clearly know a lot about it, way more than I do. And yes that’s an important nuance (the deceitful tactics) and really is my actual issue with how many people do it. 

 @Shiela R. I have known people whom have had to go through the foreclosure process due to using rent to own language in the structure, and not clarifying if it is a type of owner carry VS a lease option. Correct me if I am wrong but a ton of rent to own's are done in an owner carry type manner...which is where it seems most the pain comes. I guess I could have spelled that out, but to me and from what I know, it is vastly different than a lease option.  A lease option is as simple as normal tenancy.  All of this could be state by state and my experience here is finite and indirect, I'll admit.  

@Lindsey Johnson rent to own is where monthly rent will eventually mean a tenant owns a home, 30 years later. Sounds good but gets choppy if they decide to “sell” because they don’t really own it, and are upset…no one stays anywhere 30 years anymore. And there are, unfortunately, sellers / investors who prey upon this. 

A lease option: an “option” to buy something is paid for, for let’s say $1,000 or $5,000. It allows the tenant a year or two to get their finances in order to buy the house. But they are still a tenant and they should know that, because there isn’t any language for ownership. Only for the “option” to buy it in a year. 

Hey @Sharone Richardson welcome and congrats on the exciting first / next steps you are taking. I’m here to help if I can. I have some perspective  as it was 3 years ago I decided to go self employed and count on no one but me, and investing has only grown compared to the w2 days. Holler if you need something. 

https://www.stlouisfed.org/

Welcome to BP

Good job. 

I bought 3 this year, would be more (5) but 2 of the next acquisitions are probates...likely won’t close until January … I also Helped a bunch of people build wealth through real estate. Goals for next year are to scale both things and be more aggressive with my growth.