All Forum Posts by: Paul De Luca

@Jacob Nevarez

General red flags include many days on market (60 days+), few photos available online, under contract & reactivated multiple times, and no price drops if it has been on the market a while. These are things you can see on the front end before you even see the property in person.

Red flags that you could discover later once involved in a transaction include difficult tenants and major issues with the property.

I wish I had known to start sooner!

@Calvin Rappard

Depends, did your tenant cause the oil spill or did it come from someone else? What does your lease say regarding maintaining common areas or the property in general?

If you provided the tenant the HOA rules & regulations prior to moving in, then I think they should be responsible for paying the fine.

@Oluwabusayo Adebayo

Welcome! What do you have in mind for your first investment property?

No problem! Living in a SFH and renting out the bedrooms is typically called the "rent by room" strategy. Once you're pre approved, you'll be able to hone in on the specific areas that make sense for your budget.

 If you're interested in learning more about creative financing, you could check out the BP book "Wealth Without Cash" by Pace Morby.

When getting started, I recommend narrowing your focus and choosing one specific investing strategy you want to pursue that makes the most sense for you right now. The right area to invest in for you totally depends on your buying criteria.

 You wouldn't be sharing a bathroom with a stranger since you would occupy a separate apartment. You live in one unit and rent the others out.

@Jacob Nevarez

Welcome! That's great you're taking action and ready to get your first investment.

It depends on your buying criteria and situation, but my general advice is to house hack a 2-4 unit property rather than a SFH. A SFH could make sense as a house hack if you found one that has an in-law arrangement but otherwise I'd say 2-4 units is the way to go.

If house hacking doesn't make sense for you & your family, you'll likely need 20-25% down for an investment loan to buy & hold a property you won't be living in. It takes a lot more capital than house hacking.

@Connor Chanter

I'm not a CPA but based on your post as long as your mom is the owner of the house in Michigan she should qualify for the $500k capital gains exemption. But @Drew Sygit brings up a good point regarding filing jointly or separately. If you want professional tax advice I can connect you with a great CPA.

@Teddy Mao

I agree with @Jonathan Greene. It makes little sense to keep the property in Dallas since it's producing practically no cash flow. I recommend selling it and putting the money to better use somewhere else, perhaps into a rental property in your local market. It depends on your goals and how much cash you have at your disposal.

 Welcome! I highly recommend reading the BP books for self-education and house hacking a 2-4 unit property for your first deal. Great strategy for getting started.