All Forum Posts by: Tim Siocheng

@Julie Sisnroy , I recommend Spartan Invest if you're looking into investing in alabama. 

@Ali Boone, If you don't mind I would like to join your facebook group. I would like to get information on turnkey providers that I can work with. It's unfortunate that I already came across some that are not working very well.

Thanks!

What is it like investing in OH? The properties that i have been looking into has high property taxes. My personal experience with property taxes isn't really that good (maybe because i live in california.. where taxes gets you every turn you make.) 

I am trying to justify the high property taxes. 

I search the schools and they average around 4-7.. some are down to 2's. Property appreciation is around 2% (i'm just rounding numbers) 

Are there alot of rental demand? How much can you raise rent.. to justify the raise in property taxes. ?
I am just trying to gather information for me to see a better picture of investing in ohio. 

i highly appreciate the input

Now that we will be having a new president soon, i came across an article from marketwatch about the new real estate taxes.

https://www.marketwatch.com/story/10-biden-tax-proposals-that-will-sail-through-a-democratic-controlled-senate-and-how-to-prepare-for-them-11609958777?siteid=yhoof2

“6. Elimination of real-estate tax breaks

The Biden tax plan would:

(1) eliminate the $25,000 exemption from the passive loss rules for rental real estate losses incurred by middle-income individuals,

(2) eliminate Section 1031 like-kind exchanges that allow deferral of capital gains taxes on swaps of appreciated real property,

(3) eliminate rules that allow faster depreciation write-offs for certain real property, and

(4) eliminate qualified business income (QBI) deductions for profitable rental real estate activities. “

There’s already a thread going on about #2, but what about the other items that’s on the list?

How would these new proposed / planned tax law affect our investments?

Does it mean we will lose a lot of our real estate investment benefits and get taxed more?

I’m not sure how to interpret these new laws but i am not liking how it sounds like.

I was in the same situation as you are. I pulled the money out and use it to purchase more investment property. This will accelerate you goal of quitting your day job. 

I would check if you can refinance the loan, that way you can still qualify for primary home rates vs investment rate. It's about 1% difference. (especially now rates are really low, time to take advantage) For all you know you can pull some money out.. but check also how much are the rents going around in your area. 

I would make sure that the financials (cash flow) are there. So for example your in your area the average rent rate is $1000. And your mortgage (before you refinanced) $600.. you have room to play with in terms of other cost. Such as property management, repairs, taxes, etc..

Look for property management company. I prefer doing this because it alleviates you from the day to day landlord tasks especially being new in the real estate game. They also screen your tenants, collect rents and they know the market more and the details to make sure that the property meets the requirements to get rented out. 

Sean,

I believe that some banks will take inconsideration your cashflow every month basing it on the lease agreement, bank statements and total of amount of money left. I am not sure if you still have a W2 job, but i also think that it helps you to get approved to borrow more money for property investments. 

@Jennifer Donley I followed your advice, thank you. It was hard to get somebody on the phone and get somebody on my case but after 3 days of calling i got lucky. 

Thank you again

Check out renttoretirement.com or zach lemaster. They have exposure in Missouri

I just went through similar situation lately and what i did was i consulted my CPA also and some people here in the BP. In the end it boiled down to your current situation.

1) Where are you in the stage of your investing? Are you still looking for growth / expanding your portfolio or are you established and just looking for cashflow.

2) Is the property under your name (i believe if it's under your own name, you have a limit of 10 loans) and how much loans are already in your name?

3) You can probably buy more investment properties with $70k and increase your portfolio. 

4) Your current tax (you might want to consult your CPA) will it make sense for you to pay it off or have a write off? some people don't have enough write off and some people do. 

I hope this helps you out on your decision

I had the same problems a few years ago and like the others have mentioned i went and bought a new pair of washer and dryer. I bought the whirlpool brand and there's no problem after. I didn't try to cheap out in looking and buying 2nd hand / used washer and dryer because it might just give me more problems in the near future. Just for example, if the used one have problems that i didn't know, it's out of warranty and i would be calling someone to get it repair every single time it breaks. To save time, possibly money everytime someone has to go out and repair it and the headache both for me and the tenant; i just bought new ones.