All Forum Posts by: Reid Kelley

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I need guidance as I am trying to break into real estate investing. The past few years I have had the Fortune of family members giving me a place to live for a year and a half after finishing school, to help save some money and start my adult life. After that year and a half we looked into buying but another family member my grandmother asked me if I was interested in moving into her rental that she has had for ~40 years in exchange for putting in labor to fix it up for sale.

The house was very rundown from renting that long and not maintaining the property so I have put a lot of time and effort into the place increasing its value.

This exchange currently has a time limit of 2 years. We are 6 months away from the end date. She currently claims primary residence and plans to sell and has asked if I am interested.

By claiming primary residence will stand to save over 6 figures in taxes from the capital gains as well as the increased value from the work that I have done to the property. My loss I really couldn't afford to have paid for the renovation materials at the time. I like this property and I'd like to buy it. It has potential and enough room to add an Adu in the back for added cash flow and value.

Here is my question. How can I take ownership of this property while getting my grandmother the money she wants / needs to secure her for the final years of her life. Comp homes are ~$500,000 range. I have enough for the 20% and she has mentioned that she would be willing to carry the note. However recently she has asked if I have been approved for loans and I have. But that has given me the impression that she no longer wants to carry a loan and is more looking to rid of the property and is more interested in recieving the lump sum from a bank.

This deal is only really valuble to me if I can maintain the same tax levels that she has had. House was originally bought for ~7k in the 40's. Grandma inherited the property from great grandma when she passed in the late 60's. taxes are most likely under 1k per year.

California allows for transfer between first generations not to grandchildren when the parents are alive. A living trust might be able to accomplish this but I'm not positive on how that would work. The main plan is to buy the place and build an Adu in the back. Build enough equity and transfer to another duplex while maintaining property for cash flow. This property should always cash flow since the taxes are so much lower. Does anyone have any comments or insight on how I can get this property.

I need guidance as I am trying to break into real estate investing. The past few years I have had the Fortune of family members giving me a place to live for a year and a half after finishing school, to help save some money and start my adult life. After that year and a half we looked into buying but another family member my grandmother asked me if I was interested in moving into her rental that she has had for ~40 years in exchange for putting in labor to fix it up for sale.

The house was very rundown from renting that long and not maintaining the property so I have put a lot of time and effort into the place increasing its value.

This exchange currently has a time limit of 2 years. We are 6 months away from the end date. She currently claims primary residence and plans to sell and has asked if I am interested.

By claiming primary residence will stand to save over 6 figures in taxes from the capital gains as well as the increased value from the work that I have done to the property. My loss I really couldn't afford to have paid for the renovation materials at the time. I like this property and I'd like to buy it. It has potential and enough room to add an Adu in the back for added cash flow and value.

Here is my question. How can I take ownership of this property while getting my grandmother the money she wants / needs to secure her for the final years of her life. Comp homes are ~$500,000 range. I have enough for the 20% and she has mentioned that she would be willing to carry the note. However recently she has asked if I have been approved for loans and I have. But that has given me the impression that she no longer wants to carry a loan and is more looking to rid of the property and is more interested in recieving the lump sum from a bank.

This deal is only really valuble to me if I can maintain the same tax levels that she has had. House was originally bought for ~7k in the 40's. Grandma inherited the property from great grandma when she passed in the late 60's. taxes are most likely under 1k per year.

California allows for transfer between first generations not to grandchildren when the parents are alive. A living trust might be able to accomplish this but I'm not positive on how that would work. The main plan is to buy the place and build an Adu in the back. Build enough equity and transfer to another duplex while maintaining property for cash flow. This property should always cash flow since the taxes are so much lower.

Does anyone have any experience, comments or insight on how I can get this deal done? Resources from what I have heard are estate attorney's... Thank you bigger pockets. I am looking forward to starting off in the real estate world.

I guess I should add my personal goals is to achieve freedom from the 9-5 job. So is it enough to say stay at a multi family and house hack until you can get enough residences to finance a personal home?

Hi there, just getting into this and plan to house hack in a multi family first. What is everyone’s strategy for their personal residence and exit strategy from a house hack? Obviously you don’t want to pay a mortgage. Is it to simply get all of the passive income to cover your own mortgage and then some? What’s the quick way to get out of a house hack and have a private personal residence paid for and is that desirable?

First time home buyer looking to house hack in the Napa valley where we live. Looking into a multi family property, to buy. we have secured private funding for a cash deal then refinance with a first time home buyer loan. So we are searching the MLS looking for distressed properties as we know the area well but this market is higher than any. Our goal is to get our first home and stay mortgage payment free while learning to manage properties for the first time, then to take that experience and invest in the more lucrative out of state areas. I still haven’t worked out our exit strategy as I don’t foresee being able to afford a home in the area without other income from tenets for a while but we are starting a family and would like to have a more private living situation. Any thoughts or suggestions into getting into our first property and areas to focus. Deals are hard to come buy and most will still require some cash towards the mortgage.