All Forum Posts by: Thomas Hatley

 Thanks @Scott McIntosh,

I do indeed expect to invest about $55k in renovations (purchased the home for $100k) within the next 18 months or so.

Hi All,

Back in February of this year, I purchased a rental home in an Opportunity Zone. I had been reading about Opportunity Zones at the time and understood that they would drive investment into the area and create a good opportunity. I didn't use any funds from a previous investment, but I deed the property into a sole proprietor LLC, specifically set up for this property. I understand from reading the FAQ on the IRS's website that " A LLC that chooses to be treated either as a partnership or corporation for federal tax purposes can organize as a Qualified Opportunity Fund ", however, I'm wondering if I should go forward with that filing strategy?

I'd appreciate any insight here and perhaps pros/cons of being treated either as a partnership or corporation for federal taxes in my scenario.

Thanks!

 

I am looking to put my first wholesale property under contract and noticed some of the contracts in the BiggerPockets FilePlace have a clause that say "buyer pays all closing costs".  Does this mean the end-buyer (the party to which I assign the contract) would be responsible for all closing costs, and that I would be relieved of paying them?

Thanks!

@Griffin Carson. If you're bullish on the appreciation in the area, and don't have the cash for a 20% down payment, a low down payment combined with the low mortgage interest rates available right now could be the right move. PMI certainly can eat up cash flow, but if the investment is good enough it can be worth it. I purchased my personal home with a less than 5% down to keep cash available for investment real estate. By the time I hit the two year "seasoning period", the value of my home had risen enough to have PMI dropped. Although it wasn't the easiest process (had to pay for an appraisal and make many calls to mortgage company), it worked out in my favor.

@Nandy B. Wow, not a good way for the realtor to start a relationship with you

@Ryan Deasy, Agreed.  When I first started I was buying up properties in "C Class" areas because the rent/purchase price was incredible on paper.  I learned the hard way that it can be hard to find and keep good property managers in these areas, and that can get very expensive.

@Curtis Chavoustie Have you tried seller-financing ?  That's how I acquired my first two rental properties.  It can be "sold" to the seller by saying things like " How would you like to stay diversified and in real estate without having to deal with the headaches of landlording " etc. etc.

@Kevin S., I'd prefer to do that, but the seller hasn't attempted to evict the non-paying tenant because she "just can't bring herself to do it", so I don't think that is an option if I want an offer accepted by the seller.

Sounds like a good plan in theory.  Not to be presumptuous, but I'd consider the scenario in which your grandmother can't/won't pay the rent amount you agreed on and how you would handle it.  Gathering rent from family and/or friends can get complicated and emotional.  Just be ready to handle that situation if it comes up.  Good Luck with the house hacking! It is one of the best strategies out there!