All Forum Posts by: Justin S.

Colin Simon I think that repairs sheet with costs and time periods is also in the BP book on Flipping houses. That book is a great source for doing repairs, even if your not planning to do flips.

Thanks for all the replies. It was a long talk just to get her to consider expenses for property management. I have recommended several times for her to read Brandon Turners Rental Property book, but she's too busy watching dancing with the stars. I wanted to consider her point of view, but I couldn't understand why she wouldn't consider many of the expenses so I had to ask the BP community. On top of that I don't think she included the beginning fixing costs into her analysis as well. One thing she said is she didn't want to put too much money aside for repairs because it would be sitting in the bank and would be considered income and be subject to taxes. Any thoughts on that? I think she might be focused too much on tax savings instead of getting accurate cash flow.

I know the importance of adding expenses when analyzing properties. My friend who is a real estate agent just started investing in rentals and said that she does not include expenses like property management and cap ex when analyzing deals. She plans to set aside $100 a month for repairs after paying the mortgage(including tax and insurance). She said there is no point to worry about repair costs because it is a tax write off and many things can be covered by the insurance. Without considering these expenses into her analysis it's no wonder she comes up with a 25% yield on a duplex. I just wanted your guys thoughts on this because I was taught to add all expenses to your analysis and that expenses sometimes eat 50% of the cash flow, but she believes differently and claims to get $600 cash flow on a $1300 rental with a mortgage payment of $600 Rent: $1300 Repairs: $100 Cash flow: 600 Mortgage: 600(includes tax & insirance)

It's time to get my first investment property. My lease is up in four months and I hope to find something before then that I could House Hack. I live in Portland, that's a tough place to find an affordable duplex, so I have been searching a little outside the area, but still close enough to work. I have a friend Real Estate Agent who is also searching for rental properties of her own, is that bad? How can she help me if she is looking out for herself as well? What if I show her a property I like and she wants it? Another similar option is Airbnb. I currently live in condo type apartments. An investor subleases about 8 apartments in the building and uses them as short term rentals. I talked to the lady who cleans the properties and she said they charge $200 a night. They are making bank!!! I'm considering getting into this. I would love to meet someone in my area who is already doing this and can help me understand my different options and any problems I may face. I have read and listened to podcasts about it, but knowing someone who actually does it would give me more confidence. Thanks for your responses. Any ideas or advice is welcome.

I'd like to make new friends in the Portland Oregon area. I think I need to upgrade in the friendship department. Hoping to meet people who are motivated and trying to do good things with their life. People who are reading and trying to grow everyday like me. Create powerful new friendships. Might be a little uncomfortable to meet new people, and I don't know what I can offer, but it could lead to something great. I work as a delivery driver and have been getting educated with lots of books. I want to begin my investing journey with a house hack.

Joe Splitrock thank you so much for the links, I think you answered the question perfectly. I will look more into the startup expenses and what I can deduct from them. Happy investing from Portland, Oregon!!!!

My goal next month is to prep for my rental business. This includes collecting important forms I will need for working with tenants and contractors, setting up systems, setting my criteria and searching for my market to invest in. Just wanted to reach out and see if any experienced investors had any extra tips for me as I prepare to setup for a successful rental business and search for a market. Please include any websites that you have found helpful.

I'm new to investing, but I believe you want to calculate the repair costs and cap ex(big purchase items like roofs)into your deal analysis. This way you can estimate how much you cash flow with these repairs already in mind. You would set money aside every month for repair costs. If you can't cash flow with the repair costs included than it might not be a good investment.

I'm currently reading about taxes and deductions with real estate. I'm wondering when I would be able to start writing off things. I currently do not have any properties, but I am preparing my business ahead of time by collecting important forms and getting educated. Let's say I did one of the following: buy a computer for looking for properties, bought a file cabinet for bookkeeping, go to lunch with real estate agents to help plan my business, drive to look a potential deals. When is it okay for me to write these business related things off? Do I need to have a deal already in place to be considered a business that can write Things off? Do I need any kind of business license? Do I need to be making profit?

With so many ways to invest, how would you invest 50k? All into one deal? For multiple deals? Retirement fund? My ultimate goal is to build a rental portfolio. I'd like to build up to 10k a month In cash flow and also invest in a Roth IRA. Would love your thoughts and ideas.