I've been a long-time watcher from the sidelines, and I'm finally ready to start making some real estate investments in South Florida.

Department of Housing and Urban Development (HUD) Secretary has brought renewed attention to a long-debated policy move: the potential privatization of Fannie Mae and Freddie Mac.

While I understand market trends, negotiations, and deal structuring, I know that becoming a successful investor requires a different mindset and skill set.I’m here to learn from those who have been in the trenches—whether it’s flipping, BRRRR, multifamily, or long-term rentals.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

I'd choose the former all day long.

very sorry to hear that. a lot of "professional" unfortunately only look at you as a number and not a long term relationship. you should be able to put a complaint against home inspector to hopefully recover some damage they missed

Why don't you share a bit more about where you are in the process, what you know about investing in real estate, what your goals are - short and long-term, and tell us a bit more about why you are asking your question here on BP?

At the very least she will be able to carry forward the losses for a very long time, helping her get into cash flow positive status much faster. 

Passive income is certainly the name of the game - building a real estate portfolio and creating generational wealth are key ingredients to long term holistic financial health and success.There are fantastic real estate investment opportunities in various markets, particularly in the Midwest and Southeast of the country. 

Hi David Oh-You asked about a profit sharing bonus for property managers to give them an ownership mindset and incentivize them to align with your goals for quality property management.I love this idea.While I do not have a formal profit sharing plan, I always like to recognize the property management company with gift cards to the operators and the people within the property management company I have regular contact with that help keep the property running well and keeping costs down.Related to this, a handwritten thank you card to the same people periodically goes a long way.I also like to do the same for the tenants that have been paying rent on time.To your success!