All Forum Posts by: Timothy Metra

@Christine Mwai

I'd make about $4k per month after that tax break runs out, so I'm pretty much like... If I can make $4k per month in rentals, why work? It's just hard for me to build up to that right now with my schedule. I know schedule's in REI are hectic, but it's okay when it's hectic and 100% devoted to real estate.

I'm also a very cautious individual. I'm not about to invest that $40,000 into a deal or something dumb. I'm young, but I swear I'm wise beyond my years in terms of financing. I'm just a little less old-school with the whole corporate job being a goal to have in life. I'm like a 45 year old with my finances, but I'm like a 23 year old with my "screw the corporate world" attitude. And yes, I said that in my most professional business tone.

I'd just like to set myself up for financial freedom and I absolutely love everything about real estate. I know this is what I'm meant to do. I just know a lot of people would be so negative on the idea of quitting such a good job to pursue something that isn't promised.

And lastly, sorry to ramble, my job is always in high demand. I could get it back with a phone call and about 2-3 months of time, it just may be in a different state. It's a highly skilled job that is always available. Which should put a little more temptation in me, right?!

Just curious as to if anyone has ever quit their job to go into real estate investing full time, and doing so too soon.

I work 60+ hours week right now and make good money. I'm very knowledgable (at least I think) on the many different types of REI, although I'm not 100% positive on which route I want to ultimately take to begin my career as an investor.

My job is absolute Hell, for lack of a better word. I've had worse, but I just cannot stand giving up my entire life for a job, just so I can come home too tired to even function. Literally eat (sometimes skip that part even) and go straight to bed.

Yes, I know real estate investing is a huge task and that I may work even more than I do now when I'm starting.

I'm totally okay with that. Because you know what happens 5 years down the road if I stay where I'm at? I'm in the same exact spot, working the same exact job, doing the same exact ****.

If I were to take that 5 years and hustle towards myself and my own business, the possibilities are endless. The possibilities are DEFINITE if I stay at this 9-5.

I'm fairly sure I'm going to work for the next year. My job pays well, don't get me wrong. I should be able to save about $40,000 in the bank over the next year. But after that, I truly believe I'm going to put in my 2 weeks and go for this thing full force. I have a tax break right now which is why I make so much ($1,300 per week average), but I'll get taxed about $400+ a week after that runs out.

I'm 23. I have no financial ties. I know I'm still young, but this is a now or never decision for me. I'm on a lease for the next 8 months. After that's over, I'd like to house hack a duplex of some sort and become a licensed real estate agent. Live for free, have that $40k in the bank (with my finger on the trigger), and save up a good bit of my commission income.

I'd like to know people's opinions on this. I'm an extremely driven individual. I've loved real estate since I was a teen. I started working construction with my dad at 15. I'm a businessman at heart and have a raging entrepreneurial spirit. So, my passion isn't anything to worry with.

I also research this stuff heavily, borderline religiously. I'd like to do everything, really. I'd say I'd like to do about 80% BRRRR strategy, 10% wholesales (of rehabs I don't want to get into or can't work at the time), 5% rehabs, and 5% financing other people's deals in sort of a venture capitalist way. Those are just super hypothetical numbers, by the way. Just to give you a ballpark idea on my goals.

I also do know that it's a lot harder to invest without a W-2 job, but this is fine with me. I'm a true believer that if the deal is good enough, financing will come... Even if it's not easy.

But anyways, how do you guys feel about my decision? I'd like some opinions. Negative or positive, just be real.

@Matt Speer

That's awesome. I spend about $1,500 per month with $900 in total towards living costs. I think I may house hack on my first deal, possibly. My rent is so high, because I can't stand having roommates. I'm very introverted and also spend a lot of time studying/reading, so I need quiet. That's my only concern for house hacking. I may end up doing a minor flip. I'd like to have my living situation taken care of and stop throwing money away for rent. Most people say, well, house hack! But, what happens after I do that for a year and sell the place and make $15,000? Then what? House hack again? Not really in my taste, to be honest. That's where I'm stuck. It's good to see you're doing so well at my age, though. I'm fairly nervous of people taking me seriously do to being so young, that's why my LLC isn't under my own name.

@Anthony Dooley

I'm going to put away one year's worth of savings before setting out on my own venture. And I appreciate your input! I'm going to get my real estate license first to get really familiar with my market. I'm in a college town, so I know there's a lot of potential.

@Kyle Hipp

I'm more upset with the fact of working for someone else, honestly. I work roughly 60 hours a week now, but being able to work the same amount for my own company... I would never complain, even for half the money. I also don't think $10k is a lot of money. I'd like to have about a year's worth of expenses sitting in the bank at all times before going out on my own venture, but boy is it hard to work this shift life every day. Been doing it since 15, so I'm not a slacker. Just looking towards putting the same work effort towards myself and my own business.

@Chinmay J.

I heard the other day of a kid about to graduate with an entrepreneurial degree... I couldn't help but laugh.

I'm not sure if there's another place I should be asking the specifics on this question due to the fact that all states are different, but I couldn't find much with my research.

I'm in the process of starting an LLC, but I'm unsure of what I can claim as business expenses. I work a full-time job and would be doing my own deals on the side through my LLC.

I'm confused as to what I can claim as business expenses. My plan was to set up an LLC, create a business checking account, and then only use that account for business related expenses. Then at the end of the year, submit all those business expenses when filing taxes.

I was under the impression almost anything towards the LLC could be claimed as a business expense.

Examples of things I would have claimed:

- LLC startup costs

- Costs of creating a logo

- Electronics used for the sole purpose of the business (Laptop, business cell phone, camera)

- Gas (Having a separate card used for gas purchases, keeping all receipts)

- Rehabbing (Sheetrock, tile, cleaning materials, etc. I would possibly use some sort of rewards credit card from Home Depot or Lowe's, but keep up with the spending electronically so I have all receipts at the end of the year to claim)

- Fix-up costs (Plumber's bill, electrician coming out to fix faulty wiring, termite control, etc. I would keep all bills from them to claim as operating expenses)

Am I going about this the right way, or am I totally off? I'd like to open a business checking account so it's easy to keep up with my expenses. But I don't want it to look like I'm committing any sort of fraud by claiming a laptop or something. I would be buying things with the SOLE purpose of my business.

Any help would be appreciated.

@Brian Barnes

I appreciate your input. I have $10,000 now, but I should be able to have ~ $30,000 - $40,000 by next year. I think I'll end up putting a small amount down, going the FHA route on a multi-family, then keeping a huge chunk in my savings at all times, just in case something bad were to happen. Then take an additional X% of their rental checks to go towards an emergency account.

@Aaron Z.

House hacking sounds very appealing. I'm in a lease now for about 8 more months, so I was considering buying something after this is up. The tenant situation isn't a huge issue, because like you said, I can get parents to cosign. I just know the laws tend to help tenants a lot more. I used to never consider being a landlord, because all the potential problems. The only type of situation I was going to do somewhat close to it was rent to own, so the person renting would be responsible and I'd also get a large down payment from them.

My dad isn't really the best choice for a go-to handyman. I wish, but it wouldn't work out necessarily. If I can find a reliable handyman to call in those situations, I wouldn't be so timid about being a landlord. I need someone like you have, just a handyman I can call with those sort of problems. I definitely don't want to hire a property manager for my first property if it's unnecessary. I'll send you a colleague request for any potential future questions. I really appreciate you taking the time to help!