All Forum Posts by: Nolan Neu

@Brandon Rush thank you for the insight - I wouldn't have thought to compare with comps either pre- or post-BRRR!

I'm a first-time homebuyer and investment property buyer, currently in the analysis phase while saving up cash for a down payment. I'm looking to purchase a multi-family property at a discount - the area that I'm looking at has very slow turnover with multiple properties being on the market for 100+ days even in this seller's market. My plan is to purchase it at a discount so I can use any equity generated from the sale to be used to fund the renovations and repairs, rather than going through private lenders. I am having trouble understanding how to appropriately evaluate the property's value - is it based on the current "market" value, the 2020 tax assessment value of land and improvements, or from a bank appraiser who would be used during the purchasing process? I'm looking for a good way to estimate the value so I can make an appropriate offer, hoping to BRRR it. Would any of the values below be a good estimate?

Numbers on the property:

current listing: 299,000

2020 tax assessment: 197,000

Zillow estimate: 252,000 - 299,000 (279,850 is zestimate)

Redfin estimate: 295,000

I'm working my way through the BP bookstore, but haven't gotten to any renovation books so I apologize if this question is easily answered in one of those books! Thank you!

I’m looking to buy a multi family (2-4 units) that has been on the market for a significant period of time. I understand that this property type will be distressed, so I was hoping to get advice on what the red flags are in purchasing this type of property, any resources to get me prepared to own and rehab it, and the thought of putting an under asking price offer on this home in a this current bullish real estate market?

@Jose Contreras

This is quite the informational post, thank you for your question Jose! I will be a physician in 5 years (just beginning residency) and am brand new to the REI world, so this question is important for me down the road. I have a similar question, although tailored to my specific situation, and I hope it may help answer your question through a different perspective:

It appears that, as a high income earner (>150k), it is nearly impossible to deduct rental income and expenses without REP status until the accumulated passive losses can be used to offset the home sale. However, if you and your spouse are unable to/unwilling to commit to REP status, is there a way to mitigate the increased tax burden prior to that home sale?

For example, if the homes are owned through an entity like an LLC, the QBI deduction can allow you to pass through 20% of your business income (if your taxable income is below a certain threshold). This changes if your taxable income is above that threshold (details here: www.fool.com/the-blueprint/amp/qualified-business-income-deduction/).

Could this same principle apply to a partnership with an individual with REP status? Can ownership belong to that individual in an LLC/partnership/S-Corp/C-Corp and have the non-REP individual receive compensation through non-taxable means such as employer IRA matching contributions or gifts?

@Amanda Armsby

I’ve been debating NH vs VT as the area I’m looking into is right on the border (Grafton county, specifically Hanover/Lebanon). Any reason, aside from not finding a deal, that made you think VT over NH? It seems like the property taxes and lack of income tax (I’d be an owner occupant) make NH almost a no brainer for me!

@Shane Moynihan

Hi Shane - I was wondering if you have any insight or connections to northern NH. I’m interested in the Dartmouth-Hitchcock area (Grafton county) and would love some insight into that market because it looks like it’s hot as well. Any advice or suggestions would be great if you have any!

@Landon Bleau Thank you for the feedback - never really thought about when the local student leases would turnover, just knew it would happen. Those are some great podcast, I have them queued up in Spotify as I just hit episode 100 (trying to listen to all the applicable ones starting from episode one...it’s time consuming but informative!)

@Sohaib Mannan Thank you! Great to hear another fellow doc getting into it as well! Congrats on your fellowship match, Providence area is a great place to live and invest. I’m just beginning my residency at Dartmouth, but the goal is to hold on to this property after completing residency and manage it from a distance wherever I go for fellowship. Would be great to chat about your first home buying experience, especially if you’re doing the physician loan programs!

Hi Everyone!

My name is Nolan Neu and I’m a long-time member, but I took a hiatus while I was in medical school. I am just about to graduate and am going to complete my residency at Dartmouth-Hitchcock in NH. I'm extremely excited to finally be making a salary and get into the real estate entrepreneurial/investing world (aside from becoming a physician, a longtime dream)! I aim to purchase a multi-family and house hack - it just seems like such a powerful way to build wealth. I have family members who are real estate agents/property managers who will take away most of my headaches of homeownership, so I was hoping for any advice about the process for a first-time homebuyer/landlord in the student rental market. Looking forward to being more active in the BP community, the podcasts and bookstore have been so useful so far!

Hi Scott, thank you for the input. I realize this is what will most likely happen, but I was wondering if there were any success stories I could model.

Hi Ryan, that's a solid idea and I'm happy you were able to be so creative with how you paid for her tuition! I'm hoping to make a dent in mine, but we'll see if I can find a realistic strategy.