All Forum Posts by: Patrick Dittmer

@Drew Reynolds I'm not an expert or CPA but I believe investors who hold their investment for ten years can elect to step up basis to FMV at sale, so they may also get the possibility of no capital gains tax on appreciation of the opportunity zone investment. The full benefit is (1) deferment (to 2026) of, and 10-15 percent discount (through step-up in basis) on, the cap gains contributed and (2) no capital gains tax on the appreciation of the QOF's opportunity zone investment.

@Michael Gunn I mIght have missed the mention here, but it could also be constructive to think about what your ideal tenant is (newly minted working professional, grad students, hard-working college kid, blue collar workers, etc.). Some strategies may not jive with your personality and could turn a (somewhat) passive investment into a very offputting experience. Your pick there will dictate what asset you’re looking for almost as much as other “goal factors”. I believe the pro hockey player featured as a guest on the bp ep mentioned house hacked with/rented to teammates for a time. Definitely check out that episode!

@Michael Junior Yea, you should be able to call a local PM to get a sense of area vacancies, as they vary. But I believe a good ballpark fIgure for analysis is 6-8% of gross rents. Capex is capital expenses (the larger expenditures that extend the life of the asset, lIke a new roof, not just routine repairs/maintenance) (you should factor those in too). Not sure how others do it, but I plan to have, upfront, extra cash on-hand in case of emergencies (furnace goes kaput), but also factor in my analysis a little expense every month to ‘fund up’ an account from which to cover those kinds of infrequent and less predictable but substantial costs. Think some people might use a home equIty line of credit (HELOC) on their primary residence for this same purpose. Good luck, man!

@Katharine Chartrand Hope it ultimately worked out in your favor! How was this issue resolved?

@Michael Junior just checking, by ”all expenses” do you mean inclusive of vacancy allowance, property management fee (whether DIY or PM), contributions if any to a capex reserve fund, etc.?

Thanks, all, for your RE group mentions! I hope to have the opportunity to meet at one of these gatherings in the near future. 

@Rebecca Knox It's nice to e-meet you! I am narrowing down the field of neighborhoods of interest based upon what I have seen people smarter than me doing, but still very open-minded on location. Much research left to do. The tentative plan is to do at least one conventional mortgage for a SFH or Duplex and then, if possible (and the numbers work), an FHA into a tri/quad multi shortly thereafter. If the group meetings are posted here on BP, I'll be damned if you don't see me at one of them!

I'm a long-time listener and reader of BP but fresh to Milwaukee. My partner and I are interested in predominately buy-and-hold multifamily. We look forward to meeting all the wonderful people on this forum and hopefully contributing more and more to the community!

I like adding in government websites to the mix for greater peace of mind. Bureau of Labor Statistics and Bureau of Economic Analysis have good interactive data. You can break your search up by geographic region, state, metro area, etc., and/or export to excel. I know that the U.S. DOC takes this seriously. They are aware that publicizing transparent macro-level data enables commerce.