All Forum Posts by: Stace Riley

Thanks @Kerry Noble Jr

I have a legal issue with a neighboring property owner. Can anyone recommend an attorney in the area?

Thanks

@michaelswan, I just listened to the podcast from a few months back where you were interviewed. In it, and in your bio, you reference the rental income from your property as follows:

"They cash flow at approximately $144,000.00 per year. That is primarily tax deferred..."

I am not asking for tax advice, but this is not the first time I've heard rental income referenced as "tax free" or "tax deferred". Can you explain, in laymens terms, what you mean by this?

My understanding is that Unvle Sam is still going to view the cash flow as income...

Thanks,

Stace

Hello BP community!

Need some feedback on our funding plan to get into long-term rental investing. We want to build our portfolio with rental properties, but need to work with turn-key companies out of state as the local area is too hot to make the numbers work. We don't want to go with the lower end properties (40-65k), but would rather try and stick around the 100k range after all rehab is done. We are looking in the Memphis and Birmingham areas now, with Detroit and KC next on the list. 

Our challenge is the down payment needed to go along with the conventional financing we will try to obtain to go along with the long-term holding thinking. We have some available funds in a HELOC and may have the opportunity to take out a small loan against my 401k, but still won't have enough for the couple of properties we want to begin with.

We have started the process with Fund and Grow. The idea is to use that for the balance of the down payments needed and throw as much of the cash flow as we can back at the balances and then use the 2nd and 3rd "rounds" of funding to keep the 0% interest on the funds used.

I that have read the other posts here and here that have some great starts to the story, but not much follow up on subsequent "rounds" of funding. I realize that this is usually used for BRRRR investing - but that is somewhat prohibitive with my full-time job and, again, the local market. So, I wanted to get feedback from the community on using lines of credit to get started - and also see if anyone quick with numbers can show what the max time-frame is before this type of funding doesn't make sense for buy-and-hold. (i.e.-how fast we need an alternative exit strategy).

Thanks for the read!

Thanks @Regen Place, for the welcome!
How did you find the property in Kansas City? Do you have a local group (Realtor, Contractor, Management Co.) that you had to put together? How did that deal come to work out for you?
Are the 20 properties you mentioned all in the Co. Springs area? I am starting to look around down there for the convenience as it is a military area that should have a decent flow of residents in need of housing. But I know pricing may still be an issue.

@Erin Spradlin, thanks for the heads up on Pueblo. I would not be opposed to going that far and still consider it slightly "local". Do you have any further insights on other folks to reach out to down there that are successfully investing in the Pueblo area?


@Larry Fried, Thanks for the welcome and reply. Do you have any recommendations for Turn Key companies that you've worked with? Luckily, my wife works for an airline, so traveling to the markets will not be an issue - just need to get to know folks here in the areas that I can work with. 


Thanks, @Bill S., great advice!

@Ken Breeze, what a great welcome and response to my post. Thanks for all the links/info. I have read a couple of those already, but will be sure to check out the rest. 

Hello BP Community!

I'm originally from Montana, but have been living in the Denver metro area for almost 20 years. My day job is as a software consultant, and I've been in the tech industry for most of those 20 years. 

I got into real estate last year when, instead of selling and moving to a slightly upgraded property, we rented it out and are able to use the cash flow for the upgraded property. We realized earlier this year that simply trying to rinse and repeat that strategy in this area takes too much luck and market timing. 

We were introduced to the Rich Dad/Poor Dad book and it changed our mindset from the traditional save-for-retirement strategy to trying to acquire enough properties to reach that first "financial freedom" hurdle of replacing our current income with passive real estate income. We've spent many hours researching using our library card (invaluable resource) and many different podcasts. I believe we came across Bigger Pockets after listening to the Morris Invest podcast.

We are currently researching Turn-Key companies in the Midwest and the South. I would love any feedback anyone is willing to share on positive experiences with TK companies anyone has used. I've searched through the forums a bit, and will continue as there are so many posts to get through. With my full time day-job, TKs seem to be the best way for us to start acquiring properties, but I also wouldn't be apposed to some BRRRR deals if we can find locally.

We don't have much cash to start out, so we have started the process with Fund and Grow. I've read the case studies on FnG, and would be happy to share our experience there. I also have a couple of local real estate investor friends that I will try and leverage for advice and any financing or deals that may be found around here.

Our first goal is to get our first property under our belts, then plan for the next! We are looking at structuring LLCs and a holding company first, but after reviewing a lot of posts here, that may not be an immediate need. I'm thinking a 5 year plan with an additional 5 years for growth before I can "retire" from my day job, but we'll see. 

Thanks for the read, and I look forward to any and all feedback from this great community!

-Stace