All Forum Posts by: Nikolas Buchholtz

sorry i was not more clear^ depreciation is related to your asset and it you can write it off on your taxes and its very beneficial with the right attorney.

Pro-

Owner occupant financing

Lowered rent risk by spreading rent over multiple units

Can always pick up a roomate

Good hands on experience 

Can be very good cash flow or "free rent" so to say if 50 percent of the building can cover 100 percent of the rent also known as house hacking

Depreciation 

Cons-

You live near the tenant

Can go bankrupt

Develop tenant relation making it harder to evict 

Those are some off the top of my head, nor am I an expert yet so take what I put and add to it, same with the BP community

First of all if you have the oppourtunity to refinance and make money off the process why not? At the end of the day you'll have a paid off cash flowing asset, also remember economies of scale comes into play and as soon as one of your three rentals is paid off you can use the extra money that you're making to pay off the second and third! Also the way I see it if you can have a pretty passive asset make you 15 dollars a month with a property manager in place why not? That's 180 dollars a year x30 years and that's about 5500 you've made extra, now to some that may be chump change but money is money, and if you can gain 5500 dollars and have a positive cash flowing asset, and at the end of the day own one out right why wouldn't you? The way I view it is its a pain in the *** to purchase a property, find a good deal, etc... unless all of the money you would make selling the property is reinvested into 2 or 3 more properties I would not sell. Also money in your pocket is money that will be spent! Now with that being said I'm no expert, but that is the way I view it and if you can get by with it I would ride it out. All of those factors were mentioned didn't include appreciation, depending where you are that sale could kick off a nice retirement. Just my personal view point! Good luck and let us know what you decided.

house hacking is a concept where you move into the residence you are buying and rent out other rooms or units to create a profit. So in the example above purchasing a fourplex would mean living in one for at least a year and renting out the other 3 for a profit ( that's the way it should be otherwise reevaluate the deal to see what fits your life) the reason house hacking is nice is because by being an owner occupant you can qualify for an FHA loan that allows you to have a low down payment which frees up capital for other business oppourtunities. So you could put a 3.5 percent down payment live there for a year and within that year with the amount of money you have left over because of the low down payment allows you to potentially purchase more properties in the same year. Finally after that year is up if you want to move out and have your space buy a house whatever if you set it up right and already have positive cash flow from 3 units on a four unit mortgage the second you put in a new tenant to replace you, your cash flow goes up alot more. Again I'm no expert but those are the concepts alot of good stuff out there on house hacking check it out

I am unsure of your family situation, but I personally love the concept of house hacking when you don't have alot of commitments to a family or anything like that yet, you can buy two-four units at once with a multi-unit and I personally think that will easily allow you to achieve your goal of 10 properties in 10 years I have a goal set for 30 properties by 30 and I am only 20 currently, but my minimizing actual purchases and maximizing units within your scope you can afford a little downtime in between purchases while you get the hang of it, I'm no expert but this is approach I am taking towards it, and it is food for thought, good luck

I don't know much about what you said, nor did I give it much thought, but a word of advice is never post a houze or property you want to buy someone will go put in a slightly higher offer and you'll lose the bid and property to someone else who you gave this property too just a heads up

Hey I may be able to have some useful insight into this problem as I have worked at a car wash in the past, I'm unsure if this available to the general public and if so how much it would cost to purchase but we have this machine called a drive pur. It I'd guaranteed to kill smells for a year so I know it works, but look online to see if such a product exists with the name, if you live in Illinois or New York Delta Sonic Car Wash owns this machine and does it for a 60 dollar fee, you may be able to work something out with management after the place closes and get your apartment drive pured if they let you. This may or may not be a solution but I definitely would check it out as I personally have seen the worst of cars get smoke puke and other bodily fluids completly out of the car for good!

@Miguel Perez you have answered all of my questions and more! Thank you for the thorough answers and input! Much appreciated!

Hey everyone, so I have made a few posts now and here is my next question. I am most interested in buy and hold investments, I have done enough research and reading to get the concepts of it and the term I have heard over and over again is "forced appreciation" which I read is used at purchase price, typically a 10 percent forced appreciation if I remember correctly, my question is how do you determine what 10 percent is and how much money is required to do that relative to purchase price of home or purchase price of the "forced appreciation". The next question is tied to the first when you do finally force appreciate the property what should be looked at first or appreciated as a rule of thumb? Thanks everyone

I really appreciate the feedback guys, I'm hungry and ambitious just still finding my way and working out the kinks in my plan! I will add the cities to my list and research them further for what has the most potential! Thanks again