All Forum Posts by: Todd Rasmussen

@John Underwood. It's scary. We are considering renting our primary here in SD when we relocate out of state but now having second thoughts. Really don't want to sell, though.. All of our other investment properties are in landlord friendly states.

Same, every part of this.

1 Vote

San Diego, California

@Nikki Ruble

How much money do you have into your STR? 2000 divided by that amount multiplied by 1,000,000 will tell you what % better you have to do with your 1 mil in order to hit your goal.

0 Votes

Fayetteville, Arkansas

Quote from @Zackarias Aitchison:

Hey!

What additional costs are there to consider when investing OOS?

Of course, you're going to be using a Property Management Company, but are there additional taxes or fees when investing OOS?

And if so, do these costs vary state to state?

Thanks!

In the US, property taxes can vary if you are an investor and/or non resident. Additional costs are mostly inefficiencies in being able to supervise directly, so having a couple key stakeholders and networking with other investors in the area is key. We've found that economies of scale has outweighed the distance inefficiency, but the team will make and break everything. Every town, county, and state can put regulations, fees, and/or taxes in place on long distance investors so look at all government levels when you start looking at a market area.

1 Vote

Quote from @Yan Do:

I am going to sell my home and buy a new one. After I sell my home, where should I temporarily keep the large amount of money (>$500k) until I buy the next home? Should I keep it in a high yield savings account?

Depending on timeframe, I'd be looking at either high yield savings, money market or CD's

0 Votes

@Richie Thomas

Do you see the wire leaving your bank account when you look at your online banking? I've never done a wire without getting some kind of receipt or documentation.

1 Vote

@Marat Turgunbaev

You can't do anything after the fact. Was electrical included or excluded from your contract? That's a leading question as I suspect you didn't have a contract for this work.

In reality, if they disconnected the old one, they can connect the new one. Clear contracts gets you through 99% of contractor issues because different expectation by both parties is the root of almost all of the issues.

1 Vote

Atlanta, Georgia

Quote from @Levi Eubanks:

I'm trying to do something a bit unconventional.

I'd like to sell my house to an investor now, then rent if from them for about a year (give or take a month or two). We're currently building a house and can float both, but I would love to get access to the equity in my current residence sooner than next year when our new home will be finished. HELOC is an option, but I would prefer to sell to an investor and keep occupancy while renting from them.

Has anyone done this? Are there any cons that I'm not thinking of?

I think of it about like a HELOC but also a hedge against if the market turns in the meantime. Not likely to happen, but just a hedge. Thanks!

@Levi Eubanks

It's not unheard of, however usually not for a year. You will limit your pool of buyers to people who can afford to buy your home and can afford to maintain other living arrangements for a year.

2 Votes

Kansas City, Missouri

@Dena Sommers

Well that's some **** news. I'm sorry for what your family is and will be going through.

Taking a HELOC as a down payment will not work for a period of time, (2-3 months) as the lender will require you to source large deposits during underwriting and a borrowed down payment won't be allowed. This is commonly referred to as seasoning if you wish to do more research on that specific topic.

Without getting all of your financial details, I could only offer some generic methods for you to determine what paths are available to you. Take your husband's annual income, subtract the additional income you will make, divide it by the expected proceeds from his life insurance policy and multiply that by 100. That is the return you have to get to maintain your lifestyle. If that is not feasible, you have to work both sides of the equation and reduce expenses as well as generate additional income.

My father in law was told he had a few months to live. He started eating three almonds a day and 20 years later swears that was the difference. May not help, but it couldn't hurt.

I'll be praying for your family.

2 Votes

Richmond, Virginia

Quote from @Sylvia B.:

In 2011 we bought a piece of land between our house and the paved road so that we could put in a driveway and avoid using the (terrible) county road. It came with a house, so we started our landlord adventure. That parcel was put in an LLC with other rentals and all was good.

About 2 years ago we decided that it would be best if the land that the driveway is on was owned by our trust, just like our house, so we split off the part with the rental house and deeded the rest of the land to our trust. Again, all was good. If we ever decide to sell, the driveway goes with the house, or if we decide to sell the rental, we retain ownership of the driveway and the woods that screen our house from the paved road.

So for the past year we have been getting letters like this once or twice a month:

They obviously got the information from tax records - "recently" sold properties. I guess they assumed we bought the property and are now regretting that purchase and looking for someone to give it to. The market value of that land is $2000-2500/acre - about $48,000 to $60,000.

What idiot would fall for such a scam, especially in this this red hot market? And how do they arrive at those ridiculous numbers?

Hence the title, Do these goofy letters actually work?

If you are going to make bad offers you have to make a lot of them. Direct mail is the easiest place to do that. Wouldn't work on me, but plenty of people aren't fluent in money.

0 Votes

Quote from @Jacob Setzer:

Hey BP community, I've gotten extremely lucky over the past year or two in the crypto space and am looking to diversify my portfolio into more "real" assets. Purchasing real estate (likely for rentals) is the market that I've been leaning towards getting into the most. But besides somewhat blindly purchasing my first house I'm pretty much clueless here :)

I'm looking for any tips, tricks, advice, incredible threads in the forum that I can use to further research the space. My primary goal is to build up a stable of rental properties, and continue to grow those properties with either the equity gained after sale or cash that comes from them. I also am currently in AZ, with my eyes on CO, but wouldn't necessarily be averse to purchasing in other locations.

My current financial situation:
- Income is up and down as I quit my full time job to become essentially a crypto day trader late last year. I'm conservatively planning for my income to be around 90-100k annually going forward.

- Assets are:

- 750k-1 million that I plan to use to invest in real estate with

- Current house where I have around 125k-150k in equity

- 60ish k in 401k

- no major debt besides the house

Any help would be greatly appreciated!!

- Jacob

Solid strategic move. Network your a$$ off. Leaving a job for less guaranteed income is going to prove difficult for financing. Nothing makes a bank feel safer than a w2.

Good luck, we'll be around when you need us.

1 Vote

Tucson, Arizona

All Forum Posts by: Todd Rasmussen

Todd Rasmussen has started 29 posts and replied 1454 times.

Post: City of San Diego is proposing a new No Fault Eviction Moratorium

Post: Looking for advice for newbie investor

Post: Costs Of Investing OOS

Post: Where to temporarily keep a large amount of money after selling?

Post: Help! Need to get the xfer conf # from my bank or I lose my deal!

Post: Is there such a thing as overpriced service?

Post: Is selling my house then renting it back from the buyer smart?

Post: Spouse dying investing life insurance money

Post: Do these goofy letters actually work?

Post: Large influx of money, no idea where to start. Need help!