All Forum Posts by: Raeshelle C.

@Raeshelle C.  I'm actually not sure, that was one of my mistakes by wanting to jump into a deal so bad... I didn't get an inspection although EVERYTHING I had studied (incl seminars etc) said otherwise.  It was dumb and I knew I was being dumb lol.  But actually the issues that I had were not operational issues, it was more administrative/red tape and I don't think an inspection would have caught it...

@David Boroughes  When I read it, I was assuming she felt a 1031 would be a path to wealth in that once you have equity in a property(ies), you could "trade up" using the equity as a deposit on a larger building and not have to lose some of that deposit to paying taxes immediately..... is that not how it works?

@raeshelle cooke

Hi! It does sound like you've done a lot of research.  However with $10k it might be hard to do a house hack.  Have your seen any 2 or 3 family properties within your price range?  

I agree with others on gaining real estate knowledge and house hacking.  Why do you plan on getting a property manager from the start?  Do you already have a good handle on material and labor prices for repairs?  Do you have a property manager lined up?  I would be worried you would end up spending a lot more hiring others than if you did the work yourself.  

@Raeshelle C.

What do you mean by:

The 1031 Exchange I don't believe is bizarre at all. I giggled at that one. I want to one day retire and buy a portfolio of property that is worth 200K+ to 1M and the 1031 Exchange is a great way to get rich and do that. 

I have done 1031 exchanges and I'm not sure what you are getting at? I used it to sell commercial property and role the money into more investment properties without having to get taxed on the profit, but it certainly isn't a path to get rich, at least that I know of...

Great goals!  I also suggest you house-hack for the amount you have and your goals.  I was in the same situation, studied for years then was super anxious to make the first purchase becasue I didn't want to wait anymore.  I bought a 3-fam that was "move-in ready" but within the first few months of living there I had to pay thousands in fixing plumbing and electrical issues - whole situation was SUCH a headache.  So one peice of advice is don't jump into the first deal you come across because you really want it, make sure you scrutinize everything before you buy because you don't want any surprises!

Goals are good.  Yours are very specific, and at least one (the 1031 exchange) is somewhat bizarre.  Tax avoidance tactics are something you use when you need them, not usually a goal unto themselves.

I expect you know that you are not going to get a multi-family in Taunton for $7000 down.  Especially not one that needs no repairs.  So that is step one:  Be prepared to move.

It is not true that any property that needs work will require a 203k loan.  

You should also remember that being a landlord requires some form of cash or cash-equivalent reserves.  You need to be able to immediately replace a furnace that goes bad, because your tenants cannot be left in the cold. 

Honestly, with that amount down, I think househacking is your only alternative if you want to buy now..  

Better, I personally think, is to spend the $1000-$2000 is would take to become a licensed real estate agent and affiliate with a broker, then sell real estate part time and set aside what you make for a larger down payment.  You will learn a lot doing this, and that will keep you from having to learn lessons the hard way.

Whatever you do, do not listen to anyone saying you should spend your $10,000 on "coaching" or their "system" or their seminar or training.  They just want to take your money.

You can definitely succeed w/o even using the $20-25K. 

I have syndicated deals where I literally have zero equity in, and take a servicing fee on finding the property and arranging the syndication and the transaction. I did exit the strategy as I moved on to bigger and better things, but you don't need to save up for THREE?! years to begin!

Hi Raeshelle,

    I read through the first page or 2 and the last page here and I can't believe nobody mentioned Worcester, MA. For cash flow and building a nice portfolio you can not beat a nice Worcester 3 decker as a starting point. You can get turn key or close from 200-250k with a gross rent of 3k-4k depending on bedroom counts and so on. These places cash flow well over $1,000 a month if you buy right and have a decent rate on your mortgage. You should certainly check out Black Diamond meetup in Worcester when they come around where you can meet a couple hundred investors of different levels, but many of which are Worcester landlords.