Real Estate Investing

[TxMedic]

Currently building a short term VRBO in Port Aransas…plan is to have 2-3 more when we get this one making money.

[LWC]

How does the AIRBNB thing work if I want to be completely hands off?

Same as hiring a property manager?

Yes, you would hire a property manager. That takes a pretty decent chunk of your gross. Usually 10-30%. Which is fine if you can find a good enough deal in a good area. Easier said than done. Wish I would have got started a couple of years ago. I'm usually a day late and dollar short lol.

[CTR0022]

So with SFR what is an ideal monthly net profit?

[TildenHunter]

Some guys and I bought a ranch last September. Been working on it and hunted it a bit this past year. It has been fun. Almost sold out of it now and have been extremely happy with the outcome. I am looking for another property right now. I have thought about SFR but don't want the headache. If I can do another ranch deal like this past one, I will be in good shape to diversify into SFR and other things. Just need to find that homerun!

[labman]

For those of you heavy into it, was getting rent out of your tenants when the rules started during Covid an issue?

Less than 8% across the board for me. There were so many options for rental assistance, most took advantage of it. For SFR, having to come out of pocket for mtg payments months on in was tough for a lot of folks.

Now, we escalate rent $150-250 a month when leases roll over. Prior to Covid that was unheard of, but there is so much demand right now for multi-family (and I assume SFR) that rent has gotten crazy. Another reason I want to sell.

[3rdCoastHunter]

Man I feel like I have 50 questions - when does forming an LLC make sense?

[WilliamL]

I am a passive investor in 4 MF properties in Texas. No real work on my end.

I get detailed monthly spreadsheets on each property. Cash flow is great. Getting ready to sell 2 and the returns look incredible. Will be re-investing with the same group if we can find more properties that are worth pursuing.

[HogHunter34]

Man I feel like I have 50 questions - when does forming an LLC make sense?

I have an LLC per property with separate accounts for business transactions
It’s a good way to separate liabilities particularly from your personal assets

[rferg84]

Man I feel like I have 50 questions - when does forming an LLC make sense?

yes.

We overkill it but every property we own is in a single member LLC owned by our main operating LLC.

[JunxMan]

yes.

We overkill it but every property we own is in a single member LLC owned by our main operating LLC.

We have 2 SFR but had 3. Sold one 2-3 years ago when I realized it had appreciated 50% in 5 years and I could then pay off my home. But I regret it now because it's since doubled and the way I want to make money is to buy and hold; not buy and sell.

None of ours are in LLCs. Accountant didn't think it was worth doing if only doing a handful. Don't let an LLC stop you.

[Throwin Darts]

I just turned my first place into a rental. Looking to continue - great info yall.

If this was previously your homestead and it has significant appreciation you need to read up IRS Section 121 exclusion.

[Clay6x45]

Is there a benefit to having a real estate license vs just investing in real estate?

[ghenson82]

We sold our rent house (netting just under $5K/year) and used the cash to buy a cabin the Tennessee last fall. We had it on Airbnb and it was a cash cow (netting almost $4k/month) until the forest fires burned it to the ground this spring. Now we're trying to rebuild and find cash to get another turn-key cabin up there. We self managed remotely and it wasn't too bad once you get the system of cleaners, handymen, etc in place.

[3rdCoastHunter]

If this was previously your homestead and it has significant appreciation you need to read up IRS Section 121 exclusion.

My quick reading made it sound like you have to have sold the residence and you can still exclude rental income? I still own the home though. If I sell it tho I can exclude the income?

[Ætheling]

Is there a benefit to having a real estate license vs just investing in real estate?

You keep your commission instead of paying out on the sale.


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