All Forum Posts by: Syed Rizvi

I'm interested to know the answer to this question as well. How have RE investors previously solved the problems that ensue after natural disasters such as these? Is it wise to pick up damaged property at a discount?

Carl Fischer Justin Windham I plan on purchasing an owner-occupied investment property (potentially a duplex, triplex, or fourplex). Strongly leaning toward duplex. Ideally, it would remain owner occupied for the first 12-24 months and then I would move out into another owner occupied investment property. I have read that the self-directed IRA does not provide tax advantages for real estate that is for personal use. Is there any way to gain tax advantages for such an investment?

@Ashish Acharya I plan to cash out approximately $30K from my brokerage account (stocks and bonds). Can you please link me to where you copied that chart from? And, according to your chart, would I be paying 0% tax on the capital gains?

@Paul Allen thank you for the insight!

@Carl Fischer I will contact you privately. Thanks!

Hi BPer's,

I'd like to convert some of my stock and bond holdings to cash and then purchase an owner-occupied investment property with those funds (using the FHA loan, probably less than 10% down payment). I have held most of my stock and bond holdings for 2-3 years, so that should trigger the long-term capital gains tax (I have 6-7% unrealized gains). However, I am wondering if there is a better way for me to most tax efficiently convert these liquid assets into a real estate investment--much like how the 1031 Exchange works for real estate to real estate conversions.

Also, I may consider dipping into my Fidelity IRA and my 401K to purchase the property (as in, take out a loan from my IRA and/or my 401K). Is that wise?

Please feel free to message me privately as well. Really appreciate all of your advice! Thank you so much!

Thanks for the responses everyone! Great info :D

Who are the property managers you use in Houston? What are some reliable firms to work with? Do you ask the property management firms to manage your asset(s) full-time, or do you simply consult with them on occasion?

As an additional note, I was driving past a couple of fourplex MFH properties in Houston/Stafford this past weekend. I struck up a friendly conversation with one of the tenants and asked her opinions about living there. One thing she brought up made me particularly concerned. She discussed her experiences living at the property during the Memorial Day floods of 2015. She mentioned that the flooding completely filled up the parking lot located in front of the property and the water reached inside the bottom two units of the fourplex. Needless to say, her vehicle was totaled and the bottom two units of the fourplex needed to have their carpets restored/replaced (in addition to other forms of cleaning in these units). Apparently, only the top two units of the fourplex were left undamaged. 

My questions from this story are: did you experience similar events during the Memorial Day floods? How did you cope with such challenges? 

Feel free to chime in and answer any of these questions. Thanks! 

Thank you for so much insightful information, @Account Closed!

Hello everyone,

I am very interested in purchasing a small multifamily property this year. The goal is to live in one unit and rent out the rest. While I've been regularly checking HAR, I have noticed many of these properties are located in low-income areas. I am not sure if that is the case with all small multifamily properties in the Houston area. 

For example, I came across a multifamily property near the intersection of 290 and beltway 8 (not sure about BP rules, so I won't post the exact address and location here). Would this be considered a decent area to buy and live in?

Feel free to give me any advice on purchasing small multifamily properties in the Houston area, and the locations/neighborhoods that provide good investment opportunities! I appreciate the advice. :)

@Don Chambers 

I think subbing this out seems like a great idea! And, $800 per deal sounds like decent compensation.

I am a novice investor, and I have been thinking of this idea myself. I have met a few people who are interested in real estate investing in my local area (they may or may not have investing experience themselves), but they seem to be open to the idea of driving for dollars. I would like to pay them "referral fees" if they find me a great deal. But, after doing some research online, I realized that "referral fees" can be considered illegal in some cases. So, I am a little confused. At what point does this practice become illegal? Would the compensation that you are I are offering fall under the umbrella of "referral fees" or is it some other type of compensation altogether (like a commission of some sort)?

Also, because I am new to real estate investing, how would you suggest I provide the "mentoring" help to others who are keen to finding deals for me?

I realize I'm asking you more questions than you posed. As you seem to be an experienced investor, I would appreciate your input (and from anyone else who is willing to chime in)!

@Andrew Acuna

@Eric Guiltinan

Thank you for your input! I will definitely keep all of this in mind.