All Forum Posts by: Nicholas Sheridan, Jr.

Investment Info:

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

Purchase price: $145,000
Cash invested: $45,575

Off market, 2/1 per unit, comes with 24 total years of tax abatements (0% property taxes for the next 9 years and then 50% for the following 15 years).
20.52% COC Return with a monthly cash flow of $779

Calculations are based on: Vacancy Rate: 6%, Maintenance & Repairs: 6%, Property Management: 5%, CapEx Oh **** Fund: 5%

Investment Info:

Single-family residence buy & hold investment in Independence.

Purchase price: $112,502
Cash invested: $32,004

3 bed 2 bath with 4th non conforming bedroom

16.50% COC Return with a monthly cash flow of $440

Calculations are based on: Vacancy Rate: 6%, Maintenance & Repairs: 6%, Property Management: 5%, CapEx Oh **** Fund: 5%

Hello good people of BP, 

I am having a difficult time finding info on when I am supposed to be paying taxes on my rental income in Missouri. Both properties are owned by a single member LLC and I was under the impression this is pass through income that you pay tax on every year when you file your state return. The only info I could find is regarding employers from the State of Missouri Employer's Tax Guide. Thank you for the help!

@Austin Fruechting 4 years later and your comment was exactly what I needed! 

Thanks for the input @Jason Shackleton . Put down 25% on both which I am kicking myself now for. Hmm that is interesting because I have reached out to about 10 different HMLs and 2 of them were private. Since I still am eligible for conventional loans I think my best bet would be a short term HML or private loan. The best terms I found were 12% int at 2 points for a 6 month loan. Yes that is a good point I think I need to call more lenders and also get a couple more deals under my belt before this gets easier.

So while the world was in shear chaos this past year I have been staying in my lane with my blinders on. My goal is to hit 100 rental doors by the end of 2025 and this past year was when the clock started ticking (each year my quota is higher than the last). I ended the year by adding to my portfolio a SFH and a duplex, 2 doors short of my quota of 5 doors. I also picked up a primary residence but that doesn't count! I worked my absolute tail off to make these deals happen but they ended up being homeruns with cash flows of 16.5% and 20.5% respectively. The duplex even comes with tax abatements for 24 more years!!!

As I look to put my ducks in a row for the next deal (shooting for a 4plex fix and hold) I have hit some interesting speed bumps. I am absolutely looking to use private money and I can provide fantastic returns. But private money sure is more difficult to attract then I had imagined! Even with my track record! Here is where I'm at:

1. Previous Partner: My partner on the duplex is interested in getting involved in the next deal only if his return is above what we're earning on the duplex. Higher then 20% are you serious??
2. Long lost uncle twice removed: I had reached out to a long lost uncle (oh boy) who has VC/private money connections and I met with the connections several times on weekly calls. Turns out they are a flop and were "unsure about the market". Well if it's one thing I have learned it's that you can make money in REI regardless of the market - you adjust your criteria and make your money when you buy.
3. Family/Friends: I am eerie to mix family/friends and business. 

So here I am and here is a run on sentence - a highly driven investor with a solid track record (albeit a small portfolio), who has the teams and systems in place (my systems are laid out in my standard operating procedure manual which is a compilation of the past 5 years of research/learning), with ways to find smoking off-market deals and I can't find the damn money! What do I do now??? because this train is sure not stopping anytime soon!

Find the top property management company and ask for a referral

Hey @Zachary Scott I would say your best bet would be to pick up some real estate books and also to get out and attend (even if they are virtually right now) as many real estate events/meetings as possible. Lookup meetup.com to see if there are any real estate geared meetings near you. The more contacts you make the easier your REI journey will be! That's how I got started

Check with the city, I'm pretty sure you're not allowed to cut off utilities as a landlord

Get the BP BRRRR book! You should open communication with the investor about what kind of return they are looking for. Maybe they're looking for no return and want to roll money into the next deal, you never know! I would say offering them 15-20% return on their investment is reasonable. Or you can structure it where they get paid the first 10% of the profit and then you two split the remaining profit. Just remember that 50% of a great deal is better than 100% of no deal.