All Forum Posts by: Patrick H.

Thank you for the informative post!

Just before posting my message, I had filled out a form to contact a real estate lawyer that handles landlord/tenant issues so I'll definitely sit down with them as soon as possible and add on specifically what you describe to see if that is legal and if it is advisable for the state of AZ.

Hello,

I am renting a home in AZ currently in month 15 of a 36 month lease.  I just received a certified letter today stating that the home is up for trustee sale in 3 months.  The property is being managed by Renter's Warehouse and I do not have any contact information for the homeowner (other than their address in the Notice of Trustee Sale).

How can I go about starting up a discussion with the owner to purchase the property?  Should I go through Renter's Warehouse or send a letter to the address in the Notice of Trustee Sale (that seems a little creepy to use her address in the form like that)?  It looks like they have failed to make payments since April (we have been paying rent on time, auto-withdrawn from bank account).

Ideally:  I'd like to have the loan/trustee waive all fees and interest, potentially lower the asking price ($10,000 discount on a $160,000 outstanding balance of a home that would likely appraise for $185,000) and we'd immediately go through the purchase process as is.

Do I need to bring the Trustee into the discussion with the owner at the same time to make this deal go through?

Thanks for your time!
Patrick

If I understand correctly with the above assumptions of roughly $5500 cashflow/yr and taxable income of around $17,000 to $24,000 - if you live in a high income tax state (6% or more) and are in say the 28% tax bracket you may be paying about $5500 to $8000 in taxes out of your $5500 cashflow? Sounds like you have to dip into your capex reserves just to pay taxes if you can't shelter this thing in a self-directed IRA. Furthermore, if you are in the 28% tax bracket (AGI over $200K) does this affect the ability to use depreciation in the taxable income calculation?

@Charles Williams - Due to work constraints I need to engage as a passive investor and therefore, if I can find an excellent team in a great market, that is more important to me than being local and I believe I've found that in Raleigh.  Furthermore, I have family moving to Ft. Bragg this summer.

I analyzed several markets across the US and the factors seemed to line up correctly for my desired investment plan in Raleigh especially with the family situation at Ft Bragg.  On the other hand, after talking to locals in the Denver area, the only types of deals I could get involved in was providing private money on flips, which I really don't have any desire to do (I already own shares in REITs, hard money lenders and private investment groups and want to diversify away from further investing my money in these types of vehicles).

Hello,

I am in the process of setting up to conduct business in North Carolina (specifically in Raleigh and the Triangle area).  As far as I have discerned, the area I am interested in has a high emphasis on knowledge worker type jobs (tech, software, engineering, financial, etc).  Recently passed legislation in North Carolina doesn't sit well with many of the types of companies which are based in the Raleigh area (source cnn money "...Cooper spoke as more than 80 CEOs and executives co-signed a letter to North Carolina's governor pushing for a repeal of a "deeply discriminatory" bathroom law...").

Does anyone have any opinions on how this may play out?  Usually companies move for taxes and cost savings - not sure if I am familiar with a company moving their operations due solely to laws they find discriminatory.  I feel this definitely has a material impact on whether or not I continue to pursue the Raleigh market.

Hello,
I was wondering what is the impact of rental income on your modified adjusted gross income (MAGI)?  Do you get to take all the deductions and depreciation from the rental income before it gets added in against your W-2 income for tax purposes?

I am interested because I am borderline in the phase out / not able to use a ROTH IRA (and obviously don't qualify for a traditional). Where in the phase out spectrum I fall changes year to year based on bonuses and overtime and I'd like to know how to count in rental income (when I purchase a property later this year) for planning whether or not I can use a ROTH. I probably should just speak to a tax accountant, but I'm hoping someone else in a similar situation could give me a reasonably simplified answer just for my own budgeting and planning spreadsheets before I make an appointment with a professional.

That is a very nice map. 

I'm guessing Zillow sources census data in addition to their own data or is it all completely in-house data that they use?

Census data is very interesting (for example you can track rental rate increases and mixture changes down to the zip code level along with reported expenses for owners for a zip code to assist in evaluating out of your area markets, but of course this takes time to put together in this way for all MSAs even if you already know a few you wouldn't go into due to expense).

Thank you for the warm welcomes.
@Adam Kroll- specialization sounds like a good thing as it would definitely ease the effort of research.  By profit, I do mean to have cashflow after expenses including property management.  I'd like to be able to do it with 15yr amortization to more quickly get to the point where the house is free and clear and the rents allow me to retire early (being 40, retirement isn't too far off).
@Kevin GrinsteadI had heard snippets about the manufacturer's defects law and didn't realize it had such a large impact.
@Micki M.Thank you for the heads up!  I'll definitely go to the North Meetup as well - I live very close to the location of it.

Hello,

I am new to investing in real estate and just moved to Colorado last summer after having a home built in Erie.  Now that we are settling in and getting all the new construction costs handled (landscaping, fence, patio, minor home upgrades etc) we are wanting to put our money to work for us in more than just the financial markets.

It seems to be tough to find rental properties in the Denver Metro / Boulder Metro area that turn a profit on a 15yr mortgage, but I'm only casually looking while accruing my downpayment.
Q: What price point should I be looking into?  I was hoping to pick up lower cost condos / townhomes as single family homes around here are a bit pricey.

So far, I've read books, blogs and just recently began listening to BiggerPockets podcasts (which is what brought me here to this expansive resource!).  Furthermore, I've been talking to a property management company that is local to me about the rental vacancies and typical rental rates in the area (I'm planning to have some more serious discussions with them when I have the money to purchase our first rental property before I contact our real estate agent).

I'm planning to attend the Denver Meetup on 3/7 and am very thankful for the opportunity to meet people who are actually "making it" in this *expensive* and *tight* market.