All Forum Posts by: Nicholas Coulter

Good afternoon all! My name is Benjamin Latta-Singer I started using bigger pockets about two years ago but never did much with it. After many life changes in the last two years my husband and I have decided we are ready to embark on the journey of buying our first home. We would love as much advise as possible in all areas of buying a first home. I am an active duty Marine so we do have access to the VA loan. We would like to buy this home with the intent to keep the for 3 years at least. Depending on where our life goes in the next three years will decide if we need to move or use our home as a rental property thereafter. We don't know yet at this moment if in our market that is even possible, so worst case we could always just sell the home. If we have the ability in the next 3 years we would like to try and purchase a second home to flip and build our wealth. It would be great to get some advice and ideas from a bunch of different people to see if anyone has started out this way or has any advice, dos, or dont's. Thank you in advance for any help.

Quote from @Nicholas Coulter:

Quote from @Dan H.:

Quote from @Nicholas Coulter:

Quote from @Dan H.:

Quote from @Nicholas Coulter:

@James Lee I am building out a 2/2 1k Sq ft ADU currently near your place in NP. I would say it depends on if the property is a pain and what your long term goals are. My wife and I plan on living in our 2/2 while renting out the other 2 units onsite. Then selling with the equity built up to move into a longer term live in flip strategy. I would say the next moves you want to make are a better predictor of your next steps.

Has anyone indicated that the 2 existing units are rent controlled?   This could play a role in which unit you decide to occupy. 

good luck

I am in the smaller studio JADU with my wife. We STR the main 4/2. We will move into the 2/2 and rent out the studio likely to a family friend.
We have been using the HH/STR strategy 

 As long as you realize the JADU and primary are likely rent controlled it you ever place a LTR tenant.  In addition because you have 3 units you do not qualify for the owner occupant exemption (that is only for 2 units).  

In addition a jurisdiction can prevent the ADU and JADU from being used for STR. May not happen any time soon, but the law already exists permitting the jurisdiction ability to not allow STRs in ADU or JADU.

Good luck

We have the non occupant license and lucked out getting it. My understanding so far is that no matter what I can't STR my jadu or adu for less than 30 days.
Dan do you have any familiarity with the building permit or building departments in the city of SD? 

Only as someone that has had to pull permits. No insider or special relationship.  

in May I closed a permit that removed load bearing wall, added a bathroom, and removed a fireplace.  The inspector in some ways was a pain and in other ways was lenient.  For example, even though it was little unit, inspector required whole unit tied fire alarm.  He also required sheer wall to go all the way to shingles even though city architect approved plans that only had it go to ceiling (also the removed load bearing wall that was removed only went to ceiling).  He also required a double ground at unit even though there was a double ground at the drop (I believe he was incorrect wanting this but it was not hard to provide).  On the easy, we had work that possibly should have been on the permit.   He inspected it as though it was on permit, but did not mandate it being on the permit (example drywall, new electrical in places other than new bathroom, etc).  

 overall he was reasonable as he could have been easier but he also could have been more a hindrance than he was.

 good luck

Quote from @Nicholas Coulter:

@Namal Burman I can suggest a great CPA who specializes in REI clients. On the next steps you have hit a lot of peoples dreams. I would agree with the above advice of looking to but this thing as close to auto pilot as possible. With the additional cash coming in maybe the next journey for you is figuring out how to diversify in another asset? Maybe the market? maybe something different that you enjoy. Cheers to being in a great place!

Thanks. Can you please suggest a CPA? 

Quote from @Nicholas Coulter:

Quote from @Dan H.:

Quote from @Nicholas Coulter:

@James Lee I am building out a 2/2 1k Sq ft ADU currently near your place in NP. I would say it depends on if the property is a pain and what your long term goals are. My wife and I plan on living in our 2/2 while renting out the other 2 units onsite. Then selling with the equity built up to move into a longer term live in flip strategy. I would say the next moves you want to make are a better predictor of your next steps.

Has anyone indicated that the 2 existing units are rent controlled?   This could play a role in which unit you decide to occupy. 

good luck

I am in the smaller studio JADU with my wife. We STR the main 4/2. We will move into the 2/2 and rent out the studio likely to a family friend.
We have been using the HH/STR strategy 

 As long as you realize the JADU and primary are likely rent controlled it you ever place a LTR tenant.  In addition because you have 3 units you do not qualify for the owner occupant exemption (that is only for 2 units).  

In addition a jurisdiction can prevent the ADU and JADU from being used for STR. May not happen any time soon, but the law already exists permitting the jurisdiction ability to not allow STRs in ADU or JADU.

Good luck