All Forum Posts by: Nick Nesseth

Thanks Chris!

Good afternoon everyone,

I'm looking for a CPA to handle my taxes. Does anyone have a glowing recommendation for one that is near the College Park, MD area or is willing to work remotely? DM me for more information.

Sincerely,

Nick

 We are planning on using a property manager. For my risk threshold, Guam is too far away to manage remotely from mainland, USA. 

COVID-19 has put a hold on obtaining our occupancy permit, so we haven't closed yet.  

 Great, thanks for the feedback!

Good day everyone,

Looking to connect with a Maryland (preferably Rockville/College Park area) Real Estate Agent to assist with purchasing a Multi-Family Residence. I will be entering the area in ~November/December of 2021. I will be using a VA Loan to finance.

I really like to have a personal connection with the people I work with, as I find the process goes much smoother and both parties get the most out of the transaction. It also helps my mind stay at ease, as we will likely be managing the property remotely (in the future) and will need help finding a trustworthy property management company.

If working with me sounds like something that interests you, feel free to connect with me and we can get cracking. 

Warm  regards,

Nick
 

Thanks! I requested to connect with you, so we can message privately. The target demographic is Navy enlisted/officers with families or dual military like you said. As long as they are E6 or E5 with dependents they will get 2450 each. The house just above ours, which is a duplicate, has already been rented for 3500/mo and validated for 4400/mo. We expect to get similar numbers when we move out. 

I appreciate the reply and look forward to connecting with you.

Offer accepted on a house in Talofofo, Guam. The house is a new construction 4 bedroom 3.5 bath, two stall garage, big lot, concrete fence w/ electric gate and beautiful uncontested oceanview. 

I had originally intended on purchasing in the 200k-300k range, however the houses seem like a bag of worms. Guam REI will understand that houses here are made from concrete construction materials and that space on the island is limited, so prices are already higher than normal for the stateside equivalent. Even in the 400k-500k range it is tough to find houses that are in good condition. I was also planning on buying and selling the house in a relatively short period of time. I changed my mind on this front and instead will be holding on to the property and relying on the continued military presence to provide tenants to pay down the loan.

While I am still in the military, paying the mortgage will be easy. With current interest rates, I'm looking at a monthly payment of ~2600/month. Comparative houses in the area easily clear 2600/month. Military Overseas Housing Allowance will pay the same 2450/month for a very wide range of housing quality and location and a Cost of Living Allowance of ~1000/month. My target market will be Navy military (South of highway 4 for navy schools) with families. I'm expecting rent to be around 3000/month, however it is not unheard of for these "Executive Homes" to list for 4400/month. The builders of this house built two identical houses adjacent to it, the house that is higher up has a slightly obstructed oceanview however the builders/sellers have the perception that higher is better even though competing buyers all prefer the house that we have an offer accepted on. The higher elevation home was sold for 540,000. We got a sympathy card for a previous offer falling through on the fault of the seller, so we were offered this house for the same price as the previous house. Much better house for the price.

I am married and child free, with dual income. This will be our first home purchase. 

Rambled a bit here, but I just wanted to get my thoughts out and see what you guys think. I am definitely taking a risk, however I believe that we are making the right decision. Though I think this is gonna scare a lot of folks.

Thanks for your time!

Ends up being about a 4.2% cash-on-cash return and assumes you’d be rolling into another purchase with a 1031 Exchange to defer the taxes.

@Gabriela Gomez OHA pays out max OHA at around 290k for home buying. So you put 20% down, buy a house worth ~350k and sell it in a couple years. Lets say you sell it for exactly the same price you bought it for. 350k - 270k (amount left on loan after 2 years) = 80k. About 60k of that was your initial investment so that ends up being a profit of around 20k - 6k for real estate agent = 14k in your pocket when you leave. The numbers I posted earlier were a little too optimistic, however the concept remains the same. Can still make a profit with no appreciation just from soaking up the OHA with your mortgage.

Let me know if you see any holes in my argument!

@Gabriela Gomez Thanks for the reply, glad to see you are feeling good about your decision. Sometimes walking away can be really hard. Did you decide to lower your price point or are you renting? We are looking in the 290k-400k range to max out the 2450 OHA. What real estate agent are you using? I'm currently talking with Dru from Paradise Realty and Marie Hobson from Valor Home Realty. We are planning on selling as soon as possible, like you mentioned, after our time is up. Our biggest concern is being able to find a buyer no our way out of Guam, however we should still be able to rent out to 2 or 3 military personnel to give us a total rental income of around 2900-4000/month depending on the purchase price (using the 1% test @Owen B.). This would be a worst case scenario, because like you I am not comfortable with managing a property from halfway around the world and plane tickets are astronomical. I am not intending on factoring the appreciation into the equation at all, so when we do sell we'll be able to either take a hit or enjoy the benefits of a 3-6% appreciation as a bonus. Mostly we're looking at performing a purely cosmetic rehab, due to the construction of the houses being concrete for typhoons and needing to be able to comfortably live in the home while we update the house. With all that being said, if we buy a house for 350k and sell for 300k, we will likely still come out even due to the OHA loan pay down. Should be getting some houses to look at soon from the real estate agent, we'll keep you posted if you'd like!

Kindest regards,

Nick & Christine