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26 December 2024 | 7 replies
Talk to an accountant prior to doing the cost segregation study.You want to discuss whether it will be beneficial or not.In general real estate is considered passive which means that it can't be used to offset other forms of income such as wages, interest, dividends, capital gains, etc.However, there are some exceptions where the real estate loss can offset these types of income.best of luck.
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30 December 2024 | 15 replies
.✅ Secondly, good cause has a max cap on yearly rental increases at a certain margin above CPI or 10%, whichever is less.For those of you who own stabilized, high quality housing like we do, this shouldn’t be a problem.But instead of keeping rents flat because you are a nice person or increasing just a little bit, you could get yourself in trouble when it comes to funding future major repairs and capital expenditures.As long as you are increasing to what the market will bear, you will be in good shape.Also if you are looking at purchasing blighted, dilapidated housing with the intent of raising rents and financing improvements to the property, you will have to take this into consideration and buy accordingly and on in place rents not projected rents.On the implementation side, however that pans out, you might be able to get these necessary rent increases to finance repairs but you may need to go to housing court in order to get the green light but we are just not sure at this point and remains to be seen.✅ Thirdly, in regard to objectionable tenancy and nuisance caused by disruptive tenants, you will need to document these violations with undeniable evidence.Because police reports are not usually able to be procured due to disturbances like drug trafficking or domestic violence, you’ll need to take matters into your own hands on producing that documentation.I recommend getting security cameras installed in all common areas and outside your properties.I’ve used SimpliSafe security cameras but you’ll need to install WiFi service at your properties so that you can maintain recordings in the event of violations and add to your lease that any tampering with said cameras constitutes a lease violation as well.This is still developing and once we get further clarity, we will host a round table with legal experts on how to best protect our properties and residents.
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23 December 2024 | 4 replies
First off, of you have capital for the DP or money set aside?
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30 December 2024 | 20 replies
So from my newbie perspective a 75% all in of ARV appears realistic but I need to get some experts on my team to run the numbers and get things moving.For capital I could use 90-100k of my own cash, so who should I contact first to begin building this whole BRRRR team?
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25 December 2024 | 4 replies
I've head from others who went this route and had to pay before delivery which caused strain on capital because they couldn't complete draws in the same manner as stick built construction.
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21 December 2024 | 1 reply
It's not a fair partnership if you the tap the equity of their property to use together if you aren't brining any capital to the table.
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1 January 2025 | 22 replies
With your experience, having sufficient capital to cushion any mistakes is important.
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23 December 2024 | 14 replies
In our market, it is probably a bit more desirable to go after smaller multi and of course it depends on the capital you have.
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22 December 2024 | 7 replies
He is securing expensive debt, not debt through a bank, isn't putting any capital into the deal and structuring the equity investment in a highly risky manner without any upside offered to the investor.
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30 December 2024 | 14 replies
Put all your estimations of it, discount the cost of capital, time and add a 33% buffer to it and show it.