All Forum Posts by: Rj Lindemann

I'm glad to hear that you want a chance at the host position! While I'm all for including everyone in leadership positions, I hardly think that the primary focus should be on the host's gender. I wish you luck if you do get an opportunity to try out for the BP Podcast, but try not to rule out anyone (man or woman) by setting gender specific requirements for the role.

The primary motivation behind an investor like this is ease of investment. Some investors are willing to sacrifice some of their growth if it means it's going to be a purely passive investment. It's a win win for both of you. The investor gets a passive investment in real estate, you get a portion of the rent and equity with no money down.

The type of loan that you have shouldn't impact your ability to depreciate an asset, since the asset and the lien on that asset (the loan) are two seperate items.

Hi Julian, congrats on getting interested in real estate this early in life! Two years ago, I was in a similar situation as you. I'm 19, and I've not been at this long, but the best advice i can give is for you to SAVE SAVE SAVE. Save every penny you make, get a credit history ASAP, and make sure you start a relationship with a small, local bank. I've been investing in rentals, but no matter what you decide to do, a strong financial cusion to help ride the storm of things that will inevitably go wrong is invaluable. Best of luck, if you have any questions, let me know!

Hi Chase! I too live in a more rural area. The town I live in is the county seat, with a whopping 2,700 people. We have the largest county in Illinois to be covered by only one school district. Therefore, I understand the concern with small populations.

That being said, I'm 19 and over the past year I was able to purchase 3 rentals due to their cheap purchase prices, all of which are occupied by great tenants. The thing about these smaller communities often times is that while houses for sale might sit on the market for 6 months to a year before they are sold, rental vacancies will be filled within a month, with several applications and inquiries every day. Larger apartment complexes and multifamily buildings aren't as common, and demand for rentals is usually pretty strong.

The major issue you may run into in the future is if you get a larger portfolio, it will likely be a long and painful process to liquidate should you ever decide to do so, since putting ten or twenty houses up on the market all at once in these communities would probably add 30 - 100% to the available inventory, greatly reducing their potential sale price. Meaning you would likely need to liquidate one or two at a time.

As to the getting a feel for the need for rentals in the area, go online and try to find a rental in that area. In these smaller communities you may only see one to five, none of which have been up for more than a month or two. That is a good indication that rentals are a need, so don't be afraid to buy!

From one rural investor to another, good luck, and let me know if you have any questions!

I think this question relies greatly on an individual's tolerance for risk, as well as several other factors not mentioned. 

What is the interest rate on those student loans? Will you have potential for higher earnings in the future or are you on fixed salaries? How long did it take you to save that $24,000? 

Without those questions answered here is my two cents. Personally, I won't pay down debt that is less than 5.5%, mortgage related or otherwise. My situation is somewhat different from yours, but that is my opinion. You are better off doing pretty much anything else with the money if the interest is below 5.5%. As the interest rate gets above that, you may still be better off using that money as a down payment for a rental or stock related investments, but it becomes much riskier. 

With your current income situation, I would try to get my hands on a rental. It is difficult to save that amount of money and you likely don't know how long it will take you to save that amount of money again. Even just one rental could make a huge difference in your lives. Not only will it hopefully provide some cashflow, but more importantly it allows you to begin building wealth in an asset class that very few people at your income level are involved in. In the long run, even just one additional rental that you own outright could make a huge difference to your quality of life and position financially. Not everyone needs to be a Brandon Turner.

That being said, I live in a lower cost of living area, and 24k is enough for two down payments, whereas you may not even be able to afford one. If that's the case, I might try to get an FHA loan by finding a deal you can house hack, or try investing in a nearby, lower price point area.

All of this is simply what I would do, whatever you choose to do, best of luck to you and your wife!

Hi Nevin! While I'm not a CPA, I am an investor and I'm studying accounting in college. The IRS does consider rent income. If you choose to do so, you can pay taxes on all of it. However, what most investors will do is "write off" certain expenses that they have through deductions. Just like you get deductions for dependents, charitable donations, yourself, and many other things you can also deduct expenses related to your property in order to avoid paying taxes on your rental income.

Expenses you can write off might include insurance, property taxes, the interest portion of your mortgage payment, repairs and maintenance, depreciation of your building, and any other reasonable expenses you might incur though the investment.

I hope this helps, let me know if you have any more questions!

In my opinion, a rental listing with several views but no applications generally means that either your listing quality needs improved (better information, higher quality photos) or your rent is too high. Some areas are higher demand than others, but every market has a cap on what you can ask for rent. You may have exceeded that. Best of luck to you, and I hope it works out!

I don't think you're putting too many eggs in one basket. As you said yourself, you are saving a great deal of money on closing costs and consolidating everything into one payment. Had you gotten a separate loan for each house, your eggs wouldn't be in different baskets. Technically speaking the basket is you, so unless the amount of debt makes you nervous I wouldn't worry about it too much. Having four $25,000 loans is the same as having one $100,000 loan, it's just that the $100,000 loan sounds bigger. I like the strategy you're using, keep it up!

1. I've not been landlording for too long, but here is my personal opinion. I think it would be unreasonable to expect a tenant to pay for all new blinds when they ony damaged one. It simply is not the fault of the tenant that they no longer manufacture the same color, and I don't think a court would disagree should it get to that level.

Depending on how reliable and easy to work with the tenant has been, I would probably let it go. In my view, security deposits are mostly to protect you from more major repairs, with minor repairs due to turnover needing to simply be budgeted for every month. It probably isn't worth the headache that this could potentially cause. As i said, especially if they have been a good tenant thusfar. 

2. I always do a walkthrough with my new tenants. I take a picture of every room, and I fill out a sheet detailing the condition of each room we enter. I have them look over how I described the condition of each room and take their input on any flaws they see in my evaluation. I may then edit my evaluation accordingly. After that, I have them sign off on the paper and will go through a similar process when they move out.

Goodluck! I hope this helps.