All Forum Posts by: Steve Harlow

I saw many of these blog posts in 2005-2008 where people attempted to really leverage. Of course prices dumped and people lost everything. This is NOT the time to take excessive risk. Not saying we will have the big crash again but prices are elevated by historical standards. And home prices run in cycles as I learned back in the early 1990's and greatly benefited from others mistakes !

Secondly, the act of rehabbing and pulling money out can be a good one. I do it. However rehabbing costs are going UP and will continue to go up. Controlling costs and scheduling is a full time job. And construction crews are a hit and miss proposition. 

Gloria I am also looking for a PM in Indianapolis for my SFR's

I do think about this issue. Unlike you I have one child.  Mine is almost 16 but involved in some investing which includes far more than just real estate. My child is already involved in stock trading and commodities and has taken finance and accounting classes. When I look at some RE deals I get her involved. When I trade a stock we talk about it and go over the financials. We talk about and discuss different types of collectables. 

I'm not too worried about having a trust fund kid because my kid is  not that way and because of how I am structuring things. Like many I started with zero so I take this on with a great sense of responsibility.  

I've been doing the Do it yourself for 30 years now for most of my properties in state. You need to understand your personality.  Some people like me are better at investing than managing.

1. Key things especially after Covid. Get a good set of contractor and handyman types. this may happen through trial and error. You will have a few bad ones.

2. manage tenant expectations. 

3. Have a VERY DETAILED repair list. It will save you time. Don't count on your contractor to find problems.  

4. Educate yourself on the building trades.

Blue vs Red state is very simplistic.  I invest in both.  California is a tail of red and Blue.  Some areas are very conservative and landlord friendly and cheap to buy. Everyone assumes Calif is the SF area and LA/SD area only.

Texas/Austin was destined to go down in price.  People buy after the trend starts. You have to buy BEFORE others see the trend. 

Very interesting idea.  I think you got it right when you said "possibly get something in return"

I have invested in oil and gas for about 15 years and our family has owned wells since the 1940's. Some are still producing btw.

I won't go into to the tax benefits because your already down that rabbit hole. And I mean that in a positive way.  Unless you have a background in petroleum or chemical engineering or have one doing your due diligence then I would suggest that you walk away from this area. The drillers make money and the investors make very little. Returns are not steady.

Pay down or off the car loan. I like cars and I invest in them but not daily drivers.  pay off the 401K loan.  It starts to get hard to earn a return when you have to get more than 9 percent.

You did not mention it but stay away from buying that bigger newer home.  Its a money trap.I live in the smallest home I can get by with in the best neighborhood. 

I'm not sure of the regs but I moved some money from my Trad IRA and Roth to SDIRA's years ago.

The fees are largely based on transactions not asset value. I own RE (STVR), fix and flips, RE notes, stocks, parts of businesses, land, oil and gas wells and other things in my SDIRA's. Its more work for you as you have to do the due diligence its not done for you. So you can end up with an investment that goes down to ZERO. I have. I've crushed my stock returns over the last 10 years in my trad and roth IRA. You will have to put in more work but its worth it.

That information is available at the Franchise Tax Board site.  The rate you will pay depends on your taxable income.