All Forum Posts by: Nolan Mahoney

@Nolan Mahoney

IRS doesn’t deal with tax liens. The lien was probably sold to a third party and you would need to contact the county. They could put you in touch to redeem but why would you redeem?

You buying the home?

Who told you they didn’t pay taxes? Did they say property taxes? (Handled by the county not the IRS) or income taxes?

Either way, by now I would assume he’s paid off the last due property taxes if he didn’t lose the property and has made a payment plan if it was income taxes. 

I’d probably just ask your source to make sure they are just indiscreet jerks and not just making stuff up. Any debts tied to or secured by the property will be take care of by title and title insurance. 

Hey @Nolan Mahoney - Awesome to hear you are going to purchase your first house hack in March, no doubt you will make it happen!

My first thought is - never wait & stay with multifamily - worry less about the interest rate and just find a deal that works...they are definitely out there you just have to look 3X harder, write 3X more offers, and stay focused knowing you are doing the right things.

Which Chicago suburb are you in?

@Nolan Mahoney I've seen the same videos you have.  Read the same articles.  But the real scoop to real estate is that it's a long term investment.  It's not a "get-rich-quick" scheme no matter what tickytock says.  20 years ago, all the rates were 7%-8%.  There wasn't a term such a "cash flow" then.  If you wanted to be a full time real estate investor, you went and flipped.  But if you wanted to create long term, generational wealth...you found a way to keep properties.  All of us that got started back then and DID buy when rates were in the 8's...are millionaires today.  This is a long term plan.

A few years ago there was this thing called the "2% rule"...meaning, if you purchased a property you rented it at 2% of the value.  Then when you couldn't do that, they changed it to the "1% rule".  People who need to sell courses have to create excitement about real estate so you buy their products.  I don't mean to come down on this too hard because lots of things are worth paying for.  But what if I just told you the truth?  And didn't have anything to sell?  Then you might make a good, informed decision...maybe?  Some people may not still make good decisions but here's the question I will pose to you:

Would you pay me $100 per month for 5 years in order to get $50,000?  

And of course you would.  Who wouldn't?  But that's not what all the videos say...but that's the truth.  You will not cash flow on ANY property right now.  It's very likely you won't cash flow next year either.  Now, if you did buy a property this year...you'll increase rents next year.  Then you'll increase rents the year after.  Around year 3 you'll break even.  But the tenant is still paying down your debt for you (that creates equity) and if we use 5% appreciation each year...in 5 years you will clear $50,000.  

And that's the truth. 

Home ownership is very hard right now.  It won't get easier in the future.  In 5 years, you will be thankful to have any property.  In 20 years...you'll be telling others this same story.  

Hope all of that makes sense.
  

@Nolan Mahoney I've seen the same videos you have.  Read the same articles.  But the real scoop to real estate is that it's a long term investment.  It's not a "get-rich-quick" scheme no matter what tickytock says.  20 years ago, all the rates were 7%-8%.  There wasn't a term such a "cash flow" then.  If you wanted to be a full time real estate investor, you went and flipped.  But if you wanted to create long term, generational wealth...you found a way to keep properties.  All of us that got started back then and DID buy when rates were in the 8's...are millionaires today.  This is a long term plan.

A few years ago there was this thing called the "2% rule"...meaning, if you purchased a property you rented it at 2% of the value.  Then when you couldn't do that, they changed it to the "1% rule".  People who need to sell courses have to create excitement about real estate so you buy their products.  I don't mean to come down on this too hard because lots of things are worth paying for.  But what if I just told you the truth?  And didn't have anything to sell?  Then you might make a good, informed decision...maybe?  Some people may not still make good decisions but here's the question I will pose to you:

Would you pay me $100 per month for 5 years in order to get $50,000?  

And of course you would.  Who wouldn't?  But that's not what all the videos say...but that's the truth.  You will not cash flow on ANY property right now.  It's very likely you won't cash flow next year either.  Now, if you did buy a property this year...you'll increase rents next year.  Then you'll increase rents the year after.  Around year 3 you'll break even.  But the tenant is still paying down your debt for you (that creates equity) and if we use 5% appreciation each year...in 5 years you will clear $50,000.  

And that's the truth. 

Home ownership is very hard right now.  It won't get easier in the future.  In 5 years, you will be thankful to have any property.  In 20 years...you'll be telling others this same story.  

Hope all of that makes sense.
  

@Nolan Mahoney, I'm not a Ph.D. economist but I highly doubt rates are coming down anytime soon haha. As Nicholas noted, the whole point of house hacking is to offset your mortgage/living expenses. Do not expect cash flow. You'll most likely never find a cash flow house hack deal. There are other avenues of house hacking that you can explore such as properties with an in-law suite, finished-out basement, or ADU that can be sourced as either an LTR or STR. What market are you in?

Again, why not?

Why doesn't it 'work'?  Remember, the goal isn't to cash flow - it's to pay the same or less than you would renting

If rent would be $1000 a month, and you'd pay $942 a month in the house hack, you're ahead, because you're building equity