All Forum Posts by: Ryan Fox

They are basically using rental arbitrage and the investor is the landlord

Article here on BP discusses how this is a win-win for everyone. Obviously it's a bigger win for them but it depends on what your goals are. If you are an OOS investor who sees the value in buy-and-hold this could be very much worth it.

Here's the link to the article Rental Arbitrage

Can you apply depreciation against these taxes? If not, 

Hypothetically if you grossed 10k in rental income, what is a ballpark figure you would have to pay in taxes?

thank you in advance. 

@Ross Yeager Hi Ross. Just send you an invite to connect. Curious to learn about your experience. I just reached out to Kevin and his team about management.

@Jason Young Great post. I won't have all the advice and details as everyone else on here but I can say my wife and I are in a similar position and we see real estate as a better investment than our current 401k mutual funds. Whether you leverage or not it sounds like your gut is pointing you in a great direction. All of the benefits toward owning a property (tax advantages, likely appreciation over 20+ years, etc, all of which you know.)

I will say that we are looking to leverage our next property as an inflation hedge; locking in a low-interest rate now is very appealing to us. But do what's right for you. To me, the choice between an income-producing rental and money in an always uncertain market I'd go with the former.

Good luck and keep us posted!

@Karl McGarvey

Nice question. I teach a personal finance course and the topic of debt pay down vs investing comes up a lot with varying opinions.

Just curious, cause you mention economic concern (election), how many months is your emergency fund? It may be best to boost that using some of the extra money.

Conventional wisdom says don’t worry about paying down low interest loans. If you get another rental you could have the same cash flow that goes to the car but of course with principle pay down, and all the other benefits we on BP love.

I would (and most financial advisors) recommend holding on to that cash until you feel more certain to invest it.

@Will Fraser thank you!

Looking for a town or City where I can get a base-hit from my first deal more likely than other towns.

Price range 100k, looking for $100-200 in cash each month on average (after allll expenses, capex, respairs, vacancy, mortgage) and 8-12% COC.

Of course every town has it’s good and bad neighborhoods but what market would you suggest for a newbie to just get his first deal to get the momentum going?

I hear good things about Cleveland.

@Yonah Weiss

Mathematics. I am prone to analysis paralysis!

Hello all,

Seems the cashflow for turnkey / rehabbed / rent-ready / over-valued / good value / low-maintenance (Whatever you want to call it) is very appealing but the COC is obviously lower.

Is there any "rule of thumb" about COC (A number say to not go below) that would indicate a deal isn't a "good one." An example of a "bad deal" I'm thinking of could be when turnover wipes out that cash flow.

Or if you include vacancy, capex, repairs, and management in your analysis (Or even use the 50% rule) and still come up positive on your cash flow what other factors could you account for to see if a property would be a bad investment?

One thing I've gotten from reading this thread is that paying above-market can cost you an exit strategy.

I know Brandon (from BP) always looks for at least $100 per door with a 12% COC. Just curious if there is any magic behind those numbers.

I hope this is clear enough.

@Account Closed great advice, thank you!