All Forum Posts by: Ryan Newport

Purchasing a triplex that clearly, by all legal definition, has 7 bedrooms. Arguably 8, but I'll let one slide without any debate. Town record shows the property as a 5-bedroom. My question really here is: What's the best way to get the record to reflect the correct # of bedrooms. 

WHY?! Because I KNOW that appraisals are subject. Some appraisals will count it as 7 beds when they walk through, some will take pictures of 7 beds and still mark it as 5-beds because the town card says so. I'm planning a cashout, and the bedroom count will make a significant difference. 

Appreciate any insight!  

Seems to be the trend apparently. Looking at a couple right now at very attractive price points as well. 

@Michael Noto @Ilgaz Arikan, What I will say though however, is that I do have a couple colleagues that specifically have STR around New Haven targeting travel nurses and transplant patients, and college areas. I think there's definitely value in these niches, but it requires research. But, imagine having a travel nurse rent your air bnb for top dollar for 60-120 days straight, or a transplant patient that is required to be located close to a hospital 90 days prior and 90 after their surgery. They're saving money at your air bnb vs a hotel, and you're definitely getting an extremely high quality "short" term renter. Another important note is that New Haven just recently open up 6 new direct flight routes out of the Tweed Airport to 6 different cities in Florida. I think paying attention to factors like this helps make decisions for STR strategy.

But Michael is definitely correct in a sense that CT is certainly not a vacation destination in nearly any way besides the Casinos. 

Hi @Ilgaz Arikan. Similar to what @Ryan Luby said, I have absolutely no personal experience in short term rentals, as of right now. I do have colleagues and friends that own some in and around Connecticut though. So for what it's worth, I'd be happy to share what I know with you from what I've learned from them. 

Past that, I am a buy&hold investor focused in the central CT markets, and also flip properties as well. I'm currently house hacking in Meriden, CT to top it off (which I find to be a fantastic buy&hold market, but likely not a fantastic STR market). Ryan Luby is a great resource for the southern markets around New Haven. If you're looking for any insight in other areas to broaden your knowledge of the state, please don't hesitate to reach out to me.

Hey @Matthew Evora.

I love the Meriden investment market. In fact I live in Meriden right now house hacking in a triplex. There are definitely a couple areas that I would steer clear of, but lots of areas I'm more than happy to invest in. I think the numbers work very well and I appreciate the tenant quality and overall comfortability for myself living here. 

When it comes to house hacking, I think the real bang for your buck comes with a triplex or a quad, 3 or 4 doors. I think the duplex is a bit too limiting on how much it'll help reduce your expenses and how much cash flow you can obtain. I often see lots of duplexes selling for only 20-30k less than a similar quality triplex, so to me I'd rather pick up the 3rd unit for pennies on the dollar, ESPECIALLY if you're utilizing a low down loan product. 

Of course, it all comes down to personal preference as well. What is Matthew looking for out of a house hack. Reduced expenses? Future cash flow? Where is your personal comfort level? When you can dial in on those targets, you'll be able to filter your criteria and hone in on a target property. It's easier said than done of course, especially in a hot market, but you'll make it happen. 

Please feel free to message me to talk more. Happy to hop on a call and tell you about my experience and perspectives. 

Following. 

Hey @Gabe Shapiro I'm sending you a message. Check your inbox ! 

Hi, I am currently house hacking a triplex. It's my understanding that an individual is allowed to deduct up to $25,000 in PASSIVE losses against ACTIVE income if and only if that individual earns less than 100k MAGI (modified adjusted gross income). I am making less than 100k MAGI in this current tax year. I am NOT referring to a real estate professional status, but rather referring to Passive Activity Limits. Here's a link to what I am referring to: https://www.stessa.com/blog/pa...

My question then is, if I did a cost segregation study on my triplex using verified/trusted software such as KBKG (which only costs $400 to do), could I use all that accelerated depreciation to take an additional $25,000 reduction against my W2 income, and carry over any remaining accelerated depreciation into future years?

The follow up to this question being, since I only rent out 2/3rds of the property, would I only be allowed to claim 2/3rds of the accelerated bonus depreciation? And the final follow up to that is: If I am only allowed to take 2/3rds of the depreciation because I live in one of the units, am I missing out on carrying forward any losses I would be able to gain from depreciation once I am not occupying the property in another year and it is fully rented/investment. 

-- I understand this is tricky/intricate and extremely specific. I appreciate insight! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Meriden.

Purchase price: $277,500
Cash invested: $18,000

House hack #1

Current cash flow: $2000/mo (2 of 3 units)
Projected Cashflow after move out: $3400/mo

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

House Hacking is a great way to minimize expenses, obtain property for very low money down, and learn the ins and outs of property management.

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

MLS. Leveraged my FHA offer with attractive contingencies and was able to use a lower appraisal to reel in purchase price. Also my agent is the man. His diplomacy and responsiveness played a large part in closing this deal.

How did you finance this deal?

Combination of FHA and private money. FHA appraisal came back VERY low and all parties thought poorly of it. I put my 3.5% down and added a 5k buffer above the appraisal and borrowed the remainder through private sources on a 3 year term amortized over 5 years. This allowed me to keep my monthly expenses manageable and still close a deal. After the 3 year private money loan is paid off the property will cash flow very strongly.

How did you add value to the deal?

It’s fairly turn-key. We replaced some carpets and did cosmetic sprucing up.

What was the outcome?

Living comfortably for very low expenses and enjoying it. Stacking extra money each month to prepare for another house hack next year!

Lessons learned? Challenges?

This deal had headache after headache related to appraisal and financing and closing delays. Definitely remaining persistent and relentless was valuable for me on this deal.

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

Agent - Stephen Cornell // Berkshire Hathaway

Hi Will, I sent you a message as well with my contact info. I closed on my house hack earlier this year in Meriden. It’s been great so far and working on the next project now. I’d be happy to connect with you and share my experience and any resources.