All Forum Posts by: Sarah Parker

Hey Jerry, I know it's been a long time (9+ years) since your original post...

If you are still active and went through with this or other Limited Partnerships for real estate purchases, I'd love to hear about your experience, and if you had any good recommendations for legal counsel for the formation.

I am hoping to put together a deal for a few investors, and am wanting to establish a GP/LP partnership to distribute interests, profits, control, etc.

Thanks!!

Hi everyone;

I'm looking for some non recourse loan options for a luxury STR investment property that will have multiple investors. We are establishing a new LLC to buy the home. The seller is open to partial seller financing of about 10-20%, and we will have about a 20-30% in cash from investors for the down payment. This is our first time trying to get a loan this large (about 2 million), but the deal looks very very good.
Is getting a non recourse loan for this through an LLC possible given the details I listed above? If so, do you have any lender recommendations?   

Hi everyone,

My husband and I just bought a house. We are living in it now as we remodel it and get it in good shape to use as a short term rental. We are doing most of the labor ourselves in the evenings after our W-2 jobs. We plan on moving out in 6-8 months after buying a second home and turning the one we are in now into a full STR. We have realized we need a good CPA at this point to make sure we are doing everything we can to get the max tax deductions possible. The home won't be ready to rent for another month and we are paying out of pocket for all the materials for the remodel right now. We are confused as to what we can deduct since we are currently living in the home as we do the remodel. Is there a better way to get the house ready from a tax perspective? Does living in it while fixing it up hurt our ability to deduct the remodel expenses?

Any good CPA recommendations for our specific situation?

Thanks!

Thanks @Aaron Gordy, we had a great time working with you! And I will gladly recommend you to anyone looking to buy a property in the Austin area!

Hey Arman, I also work for FAANG and am closing on my first home in Austin tomorrow morning, I got a great deal on it, and had a terrific realtor that I can recommend. The appraisal come out about 75k over what we are getting the home for! My husband and I are buying real estate for the purpose of building long term wealth. We would be happy to meet up and share what we have learned so far whenever you get to Austin + some tips that might be more specific to doing this while working for big tech. :)

Thank you so much to everyone who replied and or sent me a direct message. I am very thankful for all the free advice given on these forums, it is such a great tool for a beginner like myself and very encouraging as well!

Hi all,

I'm piggybacking a little off of Lisa, but my husband and I are looking to buy a STR in Maui if it makes sense. We don't know much about the area, but are doing research online and hoping to learn as much as possible to see if buying an STR there makes sense for us right now (we are really hoping it does!). I work at Google as a software engineer and my husband works at a fintech company. Our jobs pay well and have great perks, but our dream is to leave them within the next 10 years and work full time on real estate investing (we are pretty young ~ still in our 20's). We are new to real estate investing (but actually have a few realtors in the family, so not necessarily new to the whole process of finding a good property or negotiating for better deals), but see so much potential in real estate investing for growing wealth while doing something we love. We are just finishing on closing on our first home in Austin, TX (via an incredible realtor we found through bigger pockets) and got an incredible deal on the home after going back and forth a little with the sellers. (speaking of; homes being sold by Open Door seem pretty open to negotiating right now since they just got fined somewhere close to 60 mil by the SEC). With so many people worrying about a possible recession and selling their current properties / the drop in people buying right now, we think this might be a great time to really go for it as far as getting 1 or 2 more properties to start slowly growing a STR income stream with. We need help finding a good team of people in Maui (or somewhere close by if another island makes more sense). We aren't planning on rushing into anything, but are ready (financially) to grab a deal if we can find one! And know of 2 or 3 more people with cash that would be open to investing with us on a larger property if the numbers make sense. Since we don't live in Hawaii, we know we would need a very experienced realtor (preferably someone who has worked with investors and specifically STRs), a good cleaning crew, contractors to help with any re-models that might be necessary, and possibly someone to help with property management (although our preference would be to do as much as we can ourselves online). My husband and I also both have the flexibility of being able to work fully remotely. While we can't and don't plan on moving to Hawaii right now, we can visit whenever is necessary and stay for a few weeks - a few months at a time, if that would help with any STR laws or permits required.

Any advice, or connections would be very appreciated. Thanks!

Thanks for all the advice! Do you think buying in a certain area of Austin makes more sense for rental income or long term growth of the home’s value? We found a home we are thinking of buying that’s at the top of our budget so I’m a little unsure if it’s a good idea. It has 2 beds, 2 full bathrooms, a large yard, and a large kitchen. The layout of the home means that we could easily turn it into a duplex, and then there is also an adu in the back yard (that has a bedroom, kitchen, and full bath), ontop of a outdoor 2 car garage. We are thinking we could rent the whole home out and  live in the adu for the first year, and then move out and rent the adu out too.  We can get a normal loan with about a 4.5% interest rate, or an fha loan with a 3.5% interest rate. But we would have to put about 100k down for the deposit because it goes over the max fha limit for a duplex (if we could even get it to be considered as a duplex, I’m hoping we can argue that because of the adu, but maybe that’s not possible?). I’m curious what your thoughts are on this. And also if there are reasons why trying to get an fha loan for a first home is a bad idea if we want to buy several more homes in the next few years. Thanks!!

Hi everyone,

My husband and I are in the same boat. We just moved from NYC to Austin and are looking to buy a place instead of renting. Our plan is to buy a place and live there for 1 year, so we can claim it as our primary residence. But we aren't sure what type of property to target. We want to house hack (rent part of it out while we live there), and then rent the entire place out in a year and buy a new property. But given how expensive the market is right now (and hearing people say that prices will keep dropping) we aren't sure if we should wait a few more months to buy or go ahead and buy now. If we buy now, does a certain type of property make more sense in Austin's current market? We are looking at single family homes, duplexes, fourplex, and condos. We noticed that getting a cash return on for just about any home isn't really possible given prices and interest rates right now. We would love to hear any thoughts! What markers should we really be focusing on to evaluate a potential property in this market? ROI? CAP?