All Forum Posts by: Nikola Dokic

Hello BP Community!

I have one deal under my belt and want to purchase another property by the end of the year, but I am running into a personal finance dilemma. I make very good income (over six figures) but because of how much overtime I work (earned around 20k last year in overtime) and from my monthly bonuses (around 60k), I had to pay over $8000 extra in taxes. My filing status is Married Filing Jointly (spouse make about 1/3 as much as me) and I claimed 0 dependents. My CPA mentioned I should look into maxing my 401k contributions in order to lower my taxable income (currently I contribute 5% and my employer matches 4%), but I want to hoard as much cash as possible that I can use to purchase property with.  What would you suggest in my situation, (this year we are paying quarterly taxes ahead of time so there shouldn't be anything owing next tax year).My retirement plan is to live off of the rental income of the paid off properties, so drawing off of a 401k would just be an extra bonus.

Note: We itemized as many deductions as we had from our duplex and anything else CPA suggested. 

 Thank you!

This year we will be renovating my tenant's side once they move out, and getting ready to hunt down a 4-plex (still researching the best options to finance it)

Thank you!

The Sacramento market has been crazy over the last few years with a lot of people from the Bay Area moving in, I really wanted to stop renting and get my feet wet so I didn't mind fronting the 15% down to make the mtg payment manageable.

For right now it's covering a portion of my mortgage, I inherited a tenant as a part of the deal and she will be moving out this May.

Plan is to bump the rent to around $1900 a month so it covers more than half of the mortgage (which is at $2990)

Once I move out and have both units rented, combined rents will be pulling in about $3900 per month.

As a complete newbie, I was just so excited to finally but something that I did not do much analysis on the deal, but I plan on holding it for a long time and having it pay for itself.

 I found BP recently so now I am catching up on the knowledge!

I agree with the above post, and would also add Florin area as one to generally avoid if possible.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $600,000
Cash invested: $90,000

Purchased a duplex in the Sacramento Area, currently living in one side and renting out the other

What made you interested in investing in this type of deal?

Wanted something that will get me decent cash flow and also is in a good area that will appreciate over time

How did you find this deal and how did you negotiate it?

On Redfin, my agent negotiated all closing costs to be paid by the seller (which was very rare in 2021)

How did you finance this deal?

Conventional 15% down, single premium PMI payment

How did you add value to the deal?

Upgraded unit I am living in, planning on remodeling the other side once tenant moves out

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with a local agent I was recommended to, nothing but positive experience

Name of agent: Nelson Lund