All Forum Posts by: Pete S.

@Baxter Richardson not sure about CA but there are Physician Loans for Duplexes up to Quads. You would have live in one of the units for a reasonable amount of time.  Just have to do your shopping. Check your credit unions and like @Sam Shueh said, with your hospital... BTW that is an awesome deal!

@nolan It may be worth your time to look into a Physician Mortgage. Most banks and credit unions offer some variation but the gist is 0% down, no PMI, considerably more lenient DTI ratio requirements, all you need is a contract to prove future income. Most require the place be your primary residence (some allow for 2nd home) and while most are for single family only, there are some out there for multifamily.

Every institution slaps the label "Physician/Doctor Loan/Mortgage" on the loan but they are usually structured pretty differently (keep an eye out for variable interest rates etc). When I did my shopping, I made  a big excel sheet comparing ~30 of them. First question you would want to ask is if PAs apply, I believe I saw a few that did offer them. 

Good luck in your medical and REI careers, both will be rewarding!

@Joseph Burell - Great story so far, thanks for sharing! I will definitely be reaching out!

Hi @Jon Graham - nope. Did look at half a dozen duplexes and had one under contract but did not end up pulling the trigger. 

With regards to the 20% pass through deduction in the Tax Cuts and Jobs act: What is the best way to uncouple depreciation from rental income to maximize the 20% deduction on pass through business income while also still taking the depreciation? 

Was thinking one entity to collect rent and another to hold and depreciate?

Big fan of both your blog posts and podcasts, thanks for the nuggets!

Good luck!

Hi @Lisa Rispoli, I'm a 3rd year resident in a similar situation. Despite my DTIR I was able to get a mortgage (physicians loan with no PMI) on a duplex. They are out there. I got mine through a national bank, I have heard of other docs getting them through credit unions with state limitations. I did a decent bit of research and have a list of national lenders that offer loans that ignore PMI if you want, just shoot me a PM.

As far as PSLF, a decent number of hospitals are 501(c)3 so if he can land a job there he can ride out the 10 years. I spoke with MyFedLoan last month and the latest is that they are closing the loop June-July 2018 but all those currently enrolled should be grandfathered in. It is the years in which the loans were taken out that matters.

There are a few threads on the topic floating around on BP. Hope this helps!

I am a 3rd year podiatry resident and have the benefit of rotating through several podiatry offices. Some are owned by commercial landlords others are owned by the doc others are owned by an llc owned by the doc or practice. As it was explained to me, the best structure was for the property to be owned by an LLC separate from the practice and your own personal assets. This way you limit the exposure of your personal assets, your practice, etc. I am not a lawyer or CPA but those would be the folks you would want to talk to. Renting to your practice from your LLC would also carry some tax benefits I believe. Other costs to be considered would be snow removal in the winters in Chicago and general building costs. You could/should get all of that information from the current owner. Think utilities and other monthly costs as well.

Good luck, excited to see what you end up doing!

Finally made it to a DIG meeting and can weigh in.

Overall, would recommend it to anyone in the area. There were small break out sessions, a n00b educational session, and then a general panel of candid folks that are all active investors. Tons of opportunities to network on a personal level before, during, and after. I was there for an hour and a half afterwards talking with investors in my market.

What I haven't tried out yet are the sub groups. There are sub groups for a bunch of different niches in addition to area subs. The crazy thing is that there is a sub meeting available just about every other day. 

I have no affiliation nor benefit from DIG in any way. Just want people to be informed so they don't drag their feet getting to a meeting like I did and missing the wealth of information and networking.

@Steve Babiak thanks for the quicktip