All Forum Posts by: Tyler Gibson

@Howie W. I will start by saying that you should talk to a tax professional about this. I am not a tax professional! That being said these are my thoughts. 

1. Yes your tax deductions will decrease because you will no longer have MTG interest. Other tax deductions would still be available like taxes and operating expenses. (you could get a new MTG on the property to pull out equity and provide a tax deduction from interest payment)

2. I suppose but not sure why you would do that. 

3. NO income is income and taxable unless you have a special case like working overseas for the military. 

I hear ya man good luck. Come back and let us know here in this post if you get a partner and what you decided to do about the split. It could help the next guy with the same question.  

@Ondrej Brown you can use FHA on 1-4 unit properties less than 400k. If I were doing it all over again I would have used my FHA on a 4 unit. It has the highest gross rent potential.

@Eric Stugart I would say start with a house hack. You will learn many of the lessons needed to feel more comfortable owning more rentals in the future. Not to mention with a house hack you could use FHA loan which is some of the cheapest money you can get. Turnkey providers do it all for you but if you don't know how to analyze the deals and interview the providers you might get hosed. I know turnkey is advertised to new investors but I think it is for people that know what they are doing and just don't want to be physically involved. But you still have to know how to analyze the deals and determine if the providers are going to be good for you.

@Ian W. if you plan to refi then do it all in your own name. Unless you have a large net worth it is not really necessary to put the property in an LLC. The only advantage of the LLC is asset protection but you can usually do the same thing with an umbrella insurance policy. If the loan you get on the property has a due on Sale clause then technically you cannot quite claim deed it to the LLC after getting the mortgage without potentially triggering the due on sale clause. If you ask your lender about transferring to an LLC after getting the MTG they will likely tell you it is a big no no. It can be done there may be a risk of the balance of the loan being called due. It may be a headache come tax time. It might not be needed. Everyone has a unique situation so you might need to put it in an LLC but I believe there is a lot of talk about putting properties in an LLC on the podcasts and so people think it is just what you need to do. But that might not be the case. The people that need to, have 10-20 or more properties and can no longer protect their assets with an umbrella policy. You might want to do some more research.

@Travis Harden Fair is going to be whatever you can come to an agreement on. I know that answer doesn't really help you but that is the reality. If you already know some people you think might partner with you then just have a conversation. Tell them what you would like to see happen then let them tell you if they would be interested in the deal you are proposing. They may counter that they want more equity or more of the cashflow or who knows what they might want but then it will be a negotiation. I would think once you have a successful track record you can show investors you could dictate terms a bit better. However until you have that track record that shows how you are worth the 50% equity split you might have to settle for a bit less. But have a conversation just be sure that you have some numbers to offer as it relates to costs and split. Last thing you want is to talk to someone throw out the idea and have them start asking you specifics you can't answer. If you get in that situation they might not take you seriously.I hope this helps some. 

@Greg Kell It seems like a pretty good deal to me. If it were me I would acquire it and since the tenants are content with the condition not do any upgrades until a side is voluntarily vacated. Start raising the rent 3-5% when you can if the tenant doesn't want to pay the additional rent cost well then now you can do renovations and then rent for top dollar. You can counter offer again around 60-65k unless they already told you that 80k was their final offer. Once you know what their final number is you can decide if it is worth the hassle. 

@Jason V. I am realtor in the Orlando area. Let me know if you would like some help in finding a property in the Disney area. 

@Jan Allen Always good to connect with service providers. I am an investor and realtor here in Orlando. I am always looking to connect with contractors. Since you are new to Florida thought I would let you know that if you want to manage a property and be paid then you need to either be a full time employee of he property owner, a ownership stake in the property or a Licensed Property Manager. Feel free to reach out if you have any questions. 

@Karl Hudson I use Solutions Group Accounting Firm. Nathan Green is the founder of the accounting division (they also have a wealth management division) and he handles my business. I don't know if he has entertainment/music industry experience. His office is located in Longwood.