All Forum Posts by: Account Closed

In my opinion, I would not go into condo around Houston unless you can buy the whole complex since there are so many deed restrictions (very important). Some condos has HOA deed restrictions that does not even allow rental although people are renting them out. Please read those fine prints and consult with lawyers.

@Jim Cummings The property is currently valued at 1.5m so I can only get around 70k for homestead. 

But if I were to live in 4 plex, I would be able to claim all on my tax right? I may be wrong. 

Hi all, 

I have a 21 units which I am paying a lot of tax due to being in the middle of the city. Would it be possible to stay in one of the units and claim homestead on 21 units property? The property is currently held under LLC. I can change the legal structure to whatever it fits.

When you say detailed records, would excel spreadsheet with time in, time out, type of work, property name be enough?

If filing jointly and all properties in one election, would spouse record of 750 hours be enough?

@Nicholas Aiola 

First of all, thank you so much for your thread and it has been really helpful reading all along the threads. 

Let’s assume my AGI is 200k from W2 income. I have about 28 doors and cash flowing positive. How will I be able to take a rental loss to deduct my W2 income? At this point, all I should hope for is just 0 for net cash flow (tax purposes)?  

Hi all, 

I am in feasibility period and walking through every unit for physical inspection. The building is built in 1970s and I am wondering other than foundation and slab what are the most important things that I need to watch out in order of most important to the lease.

@Tareq Salaita I always diversify all my bets between stocks, bonds, cash, alternatives (bitcoin, real estate, hedge funds) etc. I am 27 years old working in hedge fund industry so my view might be a bit titled to financial market rather than real estate. I just started my real estate journey a couple of months back and now currently in 28 units in Houston. 

I am trying to allocate 50/40/5/5, 50% to stocks (mostly index funds) but well balanced across geography and sectors. I don't want to over bet on particular sector or particular country (Always diversify). You do not want to be over exposed to tech when there is a tech bubble.  I always make sure most of my funds are index and under 0.5% expense ratio. 40% being in real estate (mostly multi-family apartment for now). 5% in cash. 5% in either gold, bitcoin or individual stocks or options (whatever I feel like). 

Why do I chose 50% in stocks? It is passive. It has the last 15 years average return of 9%. Everyone will say their COC is better. However, you will have to think on entirely passive part where you buy and forget about it.

However, as I get older, I will be sliding my scale of stocks to bonds and more conservative asset classes. 

@Brandon Yuan It's in the middle of Montrose and rent comps are lower than the market given that there are so many long term tenants. Current cap is 6.5% with value add potentials. 

@Ronald Rohde Seller is really pushing back on providing more than 4 months. He has provided all the leases, deposits, vendor agreements and capex on every items. Just not rent deposits on cash flow source for more than 1 year. 

Individual meters on electricity, water is paid by landlords and seller provided all the bills statements. 

Should I walk away ?

Hi all, 

I am in due diligence state for this deal (seller financing). The seller is an old guy who manages the property himself and does not use any software. He even mixed with personal bank account with all rent deposits. 

In the process of verifying rents, we requested last 1 year cash flow (bank statements). He said he doesn't want to go through trouble of inking all the personal transactions but to provide last 4 months. He said he will provide lease audit & P&L statement YTD. The property has 40% tenants (mtm), 20% very long term (more than 20 years). 

Do you think it is norm and enough to do financial due diligence for this property? If it were bank financing deal, what would bank request? 

Thank you so much in advance.