All Forum Posts by: Neil Anthony

Hello all.

My family loves to visit Maui at least once a year, so I'm tossing around the idea of purchasing a vacation rental there - specifically in Kihei. Just seeing if anybody in the community has any success (or failure) stories in doing this. Admittedly I haven't even run preliminary numbers yet since it's something we might do regardless as a second home. But it would be awesome to know if anybody else in the community has any experience in Maui or Hawaii.

Thanks!

This also shows why so many investors try to meet the level of a "real estate professional", because if you can meet those tests and be labeled as a pro, then the $150k income limit doesn't necessarily apply and you're allowed to deduct cumulative losses from your REI.

Hi Shera,

I'm relatively new to REI, but I'm a tax guy and CFP, and there should be no issues with rolling your Roth 401k into your SD Roth IRA - assuming you've either left your job, or less likely, your job allows for in-service transfers. Once they're all in one SD Roth IRA account then I believe it should be fair game to invest. That is of course assuming you're working with a company that can properly custodian a SD Roth IRA for "alternative investments".

Hi all,

I'm still in the learning stages of SFH investing, particularly out of state (I'm in the SF Bay Area), but I wanted to make sure I understand the basics of opening an LLCs for REI purposes. I know the basic reason to place property inside of one is asset protection. And I'm a tax professional, so I understand the taxation issues. But I'm looking for opinions on if it's a actually a good idea for someone living in CA.

if I create an LLC in another state, I would still have to pay CA $800 for every LLC I own. Out of state LLCs are treated as foreign LLCs in CA. So already, that's a huge expense if I'm cash-flowing say $1,200 a year.

Also, please correct me if I'm wrong, but there are potential problems with owning property in an LLC:

• It's harder to get a SFH loan for anything being bought by an LLC.
• Additionally, it would be harder to refinance/pull cash out if it's in an LLC.
• There's a chance, albeit apparently small, that a lending company would call the loan due if you change title/ownership from your name to an LLC.

Am I missing anything here? For CA residents, maybe a basic umbrella policy would suffice?

Thoughts/opinions?

Thanks!

Are there any companies that provide turnkey solutions for out of state investors? Personally, I'm looking for 3/2 SFH to start my buy-and-hold portfolio. My main motivation is to generate cash-flow in decent "B" or higher class neighborhoods, with decent chance of appreciation.

I would like to target homes in the $75-$105k range.

I'm looking to start out and I'm doing my due diligence in picking a market to invest in out-of-state. As such, I'm wondering if anybody has any recommendations for turnkey companies in OKC?

I'm buy and hold and looking for cash flow.

Thanks!

Neil

@Petru Popovici 

How many properties do you own though them?

Hi all,

I'm in the SF Bay Area and looking to do some investments possibly out of state with a turnkey company. I have no cash readily available; however, I have a $175k HELOC available to me from the equity form my primary residence. I don't anticipate having any problems securing a conventional loan. So my question to the BP community is:

What would YOU do with that HELOC if you're just starting out?

Some tid-bits:

• I am a buy-and-hold guy
• Looking for cash-flow to eventually replace my "work" income (10-15 year timeline)
• As I said, targeting out-of-state investments, so I'll be securing a reputable team to help manage the properties (thus possibly going turnkey)

I realize that I might get 50 completely different responses, but I don't mind thinking of things I never would have considered being a newbie.

Thanks for your time and input!

Thank you all for your warm introductions and words of encouragement!

@J. Martin - I'd love to invest locally where I live here in Fremont, but the numbers just don't make sense - at least not from a cash-flow perspective for somebody like me who isn't sitting on a boat-load of cash. Possibly if you're playing it for appreciation, but even then, it's hard to find a place for under $400k that isn't a condo/townhome with a $250-$400/mo HOA fee. I might expand my circle to the East Bay in time...

@Ali Boone  - I'll definitely be bending your virtual ear for any tips you can give!

Thanks again!

Hello everybody!

I'm located in the San Francisco Bay Area (Fremont) and I'm fairly new to real estate investing. 

After doing a little bit of research, I'm looking to invest in SFRs that cash flow. I understand that deals could be had a couple of hours from my house, but working full-time with a newborn son would make it quite difficult to self-manage. So if I'm to outsource to a PM anyway, I'm thinking of looking out of state where the cash flows are more likely to be better. I realize that I won't have the required time and resources to build a team out of state at this point in my REI career, so I'm thinking of going the turnkey route for now. I've read the Ultimate Beginners Guide, listened to a lot of the BP podcasts, and read a few of the more highly recommended books and I think I'm ready!

My goals are:

Within 2-3 months to purchase my first investment property.

Over the next 5 years, to average purchasing 1-2 properties a year initially using conventional loans, then to perhaps investigate alternative financing as I hit the loan "limit".

Assess my investment strategy after 5 years. Start considering multi-family/commercial? Flipping? Who knows!

My long term goal (10-15 years) is to achieve financial independence by generating approximately $12k a month in cash flow.

Of course all of this is subject to change due to unforeseen successes or challenges during my journey – but that's what life is all about!

In order to achieve goal #1, I need to target a solid city/market and possibly a reputable turnkey company to help get my foot in the door.

Any suggestions????

Oh and as an aside I'm actually an Enrolled Agent (IRS authorized tax preparer/planner) as well as a fee-only Certified Financial Planner. So over time, I hope to be able to give back and help others in the BP community with my areas of expertise. :-)

Thank you all for what you guys do!