All Forum Posts by: Joey Banasihan

Hey @Justin Sherman! I am guessing you are using current market rents for these calculations, but you also said yourself its a great and popular area with rising rents. Since we dont know what will happen in 12 months and this would be a house hack, sounds like there is potential that rents will rise - and if it doesnt rise enough to your liking, then you could stay a little longer. Of course we want to grow and scale, but the beauty of this strategy is the flexibility - don't think that just because you dont cash flow right after you move, it is not a good investment.  Plus, we haven't even talked about the tax deductibles, depreciation, and how the house hack has the potential to off-set your taxes, which is another aspect way of making cashflow (obvioulsy verify with a CPA). We have been house hacking in Boise, property to property for the last 5 years - and they all were not break even or positive after we left, and we have paid monthly out of pocket to hold properties.  We also have gained over quarter million in equity, which is helping us scale and grow faster than cashflow would ever do.  Definitely continue seeking advice from experience realtors and understand your rental market, and make sure you understand the risks involved. You got this!

Hey @Nicholas A. I would keep looking around, if it were me, I would not sign that contract. New agents use that to ensure they can hold on to a client.  Pay attention to realtors who are wanting to provide value and provide resources and make time for your inquiries without ever expecting anything from you in return. Obviously it is always a good idea to respect folks time, but find someone who also has skin in the game, investing where you are investing, can talk about their experiences, and also has built a network of folks who can support you after the transaction as well.  It's fine to work with a newer realtor, if they are also on a team with experienced investors and agents who work with investors as well - as they would have the support and resources to work as a team to help you.  Good luck, happy to talk about questions to ask realtors to gauge their experiences!

Hey @Sipan Y.! Just like any of the investment strategies here in BP, they need to evovle as the market and housing landscape evovles. Its much harder to turn a property around in 6 months expecting to have 100% of your money returned back to you - but if you focus on the right property focusing on highest and best use with an ADU add (like mentioned), in-fill/lot split, or other rehabs - then hopefully a semi-decent property like that will perform like a champ in a few years. The clients we work with who have found success letting us help them find highest and best use of properties, then we manage them for a year, and then pull out 60-70% of their money, and do it again - rather than waiting several years for a home run hit. We have been doing this constantly in Boise as we are such a high appreication market, but still more cost effective than CA. And here the squarefootage of ADUs are included in the overal squarefootage of the home. Anyways, happy to chat more and good luck!

Hey @Anthony Zotto, this question tends to lend itself to be state, city, regulations specific as the rights of tenants/property owners vary, which you probably know. We typically have a specific criteria of contingencies we are putting into place within the purchase and sales agreement to help protect our investor clients from many of the issues that arise when inherenting tenants. Check out this article we wrote, hopefully if can help you in the future. Good luck with the property!

Hey @Anthony Sigala many folks might be optimistic about this rule but the "rule" was created during a very specific and particular time in real estate as a way to help newer investors have a framework on how to approach rental properties without going in blind. We've been helping investors from Bigger Pockets buy in Boise where that rule does not necessarily work - that's because we try to educate them that its more important to take action on an pretty good investment property than waiting around for a "home-run" deal.  Whichever direction you go, be sure to work with folks who understand this and gives you the confidence to take reasonable action - I'd personally take an okay investment and weather the storm for a few years that will eventually perform well, and do that each year - rather than take 3 years to wait for the best deal possible. Good luck with your endevours, reach out if you want to learn more about the coolest market here in Boise haha. 

Hey @Juliann Morala! Good question - when Bigger Pockets leads reach out to us via out of state, we first define your specific goal with the BRRRR and talk through specific cities/areas that could lend itself to accomplishing that goal. From there we identify properties that could have some potential and if you are interesting in diving deeper, 1) we do a thorough video walkthrough to give you a realistic look of the property, 2) we give a ballpark estimate of rehab costs (we do 40 a year with our GCs o we will get pretty close), 3) we talk through market rent with our property management team, ARV, and potential highest and best use.

Ideally you find great investor agents who know their market really well and have a network of resources to provide you with enough confidence to take reasonable action.  Happy to talk through this in more detail and good luck with the out of state investing!

@Warren Peasley for sure! That is awesome, that must be exciting for sure - I hope the sell goes quickly and smoothly for you!

Those sounds like great rentals and vacancy rates have been decent - our management team only has a handful of vacanies out of the 300+ we oversee, thankful for that. Sounds you have definitely worked hard to make those stay in good shape and steady tenants, which is excellent!

It is aweome living in Idaho, and sounds like you have had a lot of great memories and experiences here. Perhaps we can meet up one day indeed, I'll be here for a while - feel free to reach out if ever want to grab some coffee!

Hey @David Overcash! Awesome to hear you are in our market, we have a lot of clients who invest both out of state and in-state like yourself! If you ever want to talk shop around the Boise markert let us know! Good luck with your investing journey!

Hey @Warren Peasley!  I hope you are doing well and sounds like you are an experience investor in this market - would love to maybe grab coffee sometime and hear about the experiences you have gain over that last 15 years!

Besides that, just wanted to chime in real quick - I'd highly check in with a CPA and I am no tax expert, so wanted to preference that. But from my understanding, the captial gains exclusion has two main criterias - you must have owned the home in the last 2 to 5 years and must have lived in the home in the last 2 to 5 years. There is a good chance that if you put your primary home into an LLC, you'd most likely lose that exclusion.

Is there a particular reason you are considering making this LLC? Do you have one already established for your other properties? Again, definitely consult with a CPA - our team has a few recommendations if you are interested and I can DM you as well.

Hey @Chandler Koch! Welcome to Bigger Pockets and love see local folks getting into real estate investing! There are so many great people and resources throughout BP that will be great to build a foundation and continue you learning. If you want to learn more about investing in Boise and the greater area, resources, and the best coffee places in town, let me know and would be happy to chat more!  Congrats on taking the step, you go this!