The way I was explained it was your net operating income minus depreciation yields your net income and you pay tax on that.

I’m in the process of searching for land in the Houston area to then build a 4-plex on it.The plan is to self-fund the purchase & construction, rent the units and cash out with a mortage.I like the idea of serving lower income families and therefore don’t shy away from section 8.This is the first time I do something like this, so I’m throwing it out there in hopes of hearing your thoughts and learning from your experience!

Do you rely on specific data sources, gut instincts, or perhaps a blend of both?

Anything under 20% is problematic.Wanting income you get a multifamily on the next.

The gift that keeps on giving! 

With your past experience and a clear goal of building a portfolio in Houston, you’re already well on your way.

Yes, I do it virtually on zoom.

On my first deal, I created an entity for that property.

I underestimated tenant behavior, facing issues like property damage, lease violations, and evictions.Once I realized the importance of focusing on the right tenant segment rather than properties, everything changed.

Sort of my own twist on BRRRR.