All Forum Posts by: Ryan McKay

@Eliott Eliaspretty much what I figure, but I as the old saying goes, "if you don't ask..." ;)

Thanks for everyone's candid feedback- HUGELY  impactful!

If I might redirect slightly- for those who enlisted a good CPA during their opening stages of their investing journey- how did you find said CPA?

Hi folks!

My wife and I closed on our first investment property this past October, a mere few weeks before interest rates hit that dreaded 7% number. We were supposed to close several weeks before we actually did, but - between some VERY "casual" (ie- slow) realtors and the builder missing several deadlines, we ended up with a rate of 6.5% where we likely would have been around 5-5.5% if things had been more timely. Way of the world though, am I right?

So- here is my question - getting a re-fi rate in the ways  that I am familiar with would still land me at the same rates that I have now. Does anyone have a suggestion for what options might be available to lower our rates within a few  months? My guess is that the end of the year will see rates back in the fives, but - gosh darn it- if I am missing a way to do better sooner, I sure would like to know about it ;-)

@Randall Alan - again, great deails- thank you sir! The real world examples really hit home and help to paint a very solid picture!

@Becca F. - Great stuff- thank you! If you don't mind my asking- Has TurboTax served you well in the opening days of your journey?

Thanks for the answer @Randall Alan- and great detail!

I am currently set up as an LLC (Ezer Enterprises, LLC) specifically for many of the reasons you mentioned, but you definitely caught a few that I had yet to really think of!

We are currently running our business through a business banking account that then flows into REIHub where we do the day to day, but that only goes so far of course. Intuit of course offers some basic level of coverage of REI with TurboTax, but that is - I am sure- more of a band-aid than anything else. They problem (or perhaps "challenge" would be a better word) is that I know we could benefit from a CPA that is well versed with REI, but can they provide enough benefit with our ONE property to cover the costs during a time where we still aren't cashflowing. Maybe the answer is "yes", but I just don't have enough insight on what a CPA would even cost to answer that question (and I don't want to engage one until I have a little more understanding of what using a CPA "the right way" would even look like.

Chicken or the egg? ;-)

Thanks Michael!

If you don't mind my asking- how do you use your CPA? Likewise, how often? Right now it all seems so conceptual, but I am trying to put together a mental picture of how it would actually work... what they can do, how often they have to do it, and how much (range) I should be ready for

Hey folks, long-time/first-time!

I'm fairly new to "the game" with one property in Murphy, NC and not quite 4 months of operations under my belt.

Tax season is coming up and - as a newbie who is not yet cash-flowing (we went live right as the "slow-season" kicked-in, so while we have kept the weekends consistently booked by keeping our pricing relatively low as we build up some positive reviews, we're not quite covering our monthlies just yet and likely won't until the season kicks up in April.

Back to tax season though...

At what point does it make sense to start paying for professional help on things like tax planning, tax-prep, general financial planning, and the like?  Can you justify it with just one 2bed/2bath in your portfolio?

What sorts of budgets would you even be looking at? 

While our goal is - of course- to continue growing our portfolio with additional STR/MTR/LTR properties, I want to make sure that we are a.) at least cashflowing on the current property with a clearly defined horizon for profit before we add further properties, and b.) that we are neither jumping the gun on "buying" help we aren't ready for yet OR waiting to long and losing dollars in an attempt to save cents.

Guessing some of you have already been here and I would love any insights you might be willing to share!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $239,000
Cash invested: $100,000

Two bed, two bath vacation rental cabin in the hills of beautiful Murphy North Carolina

What made you interested in investing in this type of deal?

This is been a long time dream that always seemed out of reach until 2020 when my family's financial status solidified which made things much more possible. I've long believed that the real path to financial freedom is in owning assets, and I have a background in both hospitality and marketing which made a buy and hold strategy much more appetizing.

How did you find this deal and how did you negotiate it?

After researching the general area for nearly 12 months, I finally bit the bullet and began contacting a couple of agents who had been recommended. When we finally began to move forward with this property, are chosen agent had to step aside and her boss stepped in. There wasn't much negotiation unfortunately, though we did get a good deal on the property strictly through benevolent timing.

How did you finance this deal?

We went in more traditional route of getting a second home mortgage, and pulled out a HELOC from our primary residence to pay for the down payment and improvements.

How did you add value to the deal?

After purchasing, we have added roughly $40,000 of furnishings thus far, and later this year we will add another $15,000 worth of improvements to the land itself including grading, landscaping, and an area for a hot tub and fire pit.

What was the outcome?

This is a fairly new endeavor and so far my wife and I are enjoying the ride. Candidly, we started in October which was the beginning of slow season so we have yet to fully cash flow the property over the last 4 months (we have kept our prices low in order to build up reviews and that has kept us booked steadily), but the area picks up steam in April each year which is when you start putting money aside for the slow months!

Lessons learned? Challenges?

Airbnb is a fantastic opportunity for the person who is looking to invest with a buy and hold strategy and who has the capital required to furnish and service the property correctly, but it also adds a level of hospitality that probably isn't suited for everyone. Looking back at things, I wish I had moved quicker, had a better understanding of the process, and had involved a team that was more familiar with the process and (sadly) a bit more "aggressive".

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

While our agent was very pleasant and owned her own rental properties, it became very apparent that that didn't necessarily translate into being the type of agent that I would necessarily recommend for this type of project.