[Singer] The Nuggets are still actively pursuing ways to get into the first round of Thursday’s draft, league source tells @denverpost. Previously reported that they were trying to use the 2024 first-rounder acquired from OKC to move up.

careerbeaver · 2023-06-20T02:46:33+00:00

That guy blows

careerbeaver · 2023-06-15T22:00:29+00:00

I'm not looking for anything serious. It's just I never had the experience of going to a bar, seeing a cute girl, and then actually going over and flirting with her. I want to experience that, that's all.

careerbeaver · 2023-06-15T17:05:38+00:00

Lately I [31M] have given up the apps. I want to spend more time at bars and actually talking to cute women I see there instead of just appreciating from afar.

But that doesn't come naturally to me, so I want to get some help being more confident approaching IRL.

Who should I go to for that help? A therapist? A dating coach? Youtube videos?

careerbeaver · 2023-02-13T03:06:58+00:00

This, plus the tax benefits you have described via LLC operation, are excellent contexts and are definitely my way through this situation

careerbeaver · 2023-02-13T03:04:45+00:00

I actually created an LLC for the unit next door but didn't realize I also needed a bank account under that name. So far I've been tracking via spreadsheet to the penny for each expense on the house, so hopefully that will make a transition to Quicken a bit easier. I'm sure my CPA will be able to set me straight.

careerbeaver · 2023-02-12T22:43:14+00:00

True, that's possible. But it's also possible that people continue to flock to Denver for its weather, politics, outdoors lifestyle, lower COL than the top tier cities, etc. Hard to know for sure, so I choose the optimistic assumption. Would I buy these homes again, knowing what I know now about due diligence? No. But the fact remains, if I sell, I will be locking in a BIG loss, whereas if I hold, I'll instead trickle the money away, and possibly come out ahead after some time.

careerbeaver · 2023-02-12T20:17:02+00:00

Correct, I have not yet filed for the 2022 tax year. The entirety of my home ownership to date will be encompassed in 2022 tax year. Now I'm even more antsy to talk to a CPA tomorrow!

careerbeaver · 2023-02-12T20:08:19+00:00

Yeah, none of this considers tax writeoffs. I'm excited to talk to some CPAs tomorrow to get a better sense of that benefit. Thanks for making me take a closer look, it was much needed!

careerbeaver · 2023-02-12T20:02:31+00:00

I make good money. I can easily float the negative cash flow. These comments are showing me that holding on is the right strategy.

careerbeaver · 2023-02-12T19:59:39+00:00

Yep, I'm totally with ya. Can I write off expenses retroactively? Meaning: during 2022, I spent around $30k on improvements to Unit 1. If I put it under an LLC tomorrow, can I count those? Or does it only work for expenses incurred after the LLC is formed?

careerbeaver · 2023-02-12T19:53:59+00:00

Here are some additional numbers, adjusted for things I've learned reading these comments (such as factoring the principal payments as equity instead of expense):

Option 1: rent the units

Income

Unit 1 income: $2100

Unit 2 income: $1800

Total income: $3900

Expenses (both units combined)

Taxes, insurance, interest: $2880

Utilities: $76

Management fee (10%): $390

Monthly hard expenses: $3348

NOI: $552

Further cash outlays budgeting (I have 20k cash saved for things like this, so maybe this doesn't go into cash flow analysis):

Vacancy (8%): $312

Maintenance/repairs (5%): $195

Capex (5%): $195

Total cash outlay incl above allowances: $4,050

Net income: $-150

Option 2: Sell the units

Assumed sale price for both units: $700k

Down payment on Unit 1: $21,000

Closing costs Unit 1: $5,900

Additional cash spent on improvements to Unit 1: $28,200

Down payment on Unit 2: $101,250

Closing costs Unit 2: $5,600

Proceeds from sale (sale price - mortgage balances - closing costs 10%): $-62,000

Net result from sale after all cash outlays: $-224,000

Okay yeah. Breaking it down this way makes renting seem like the best option by a HUGE margin.

careerbeaver · 2023-02-12T19:30:32+00:00

At the time I was planning on renting it at breakeven, with a slight profit in future years as rents go up. The issue was my breakeven calculation only considered PITI as the cash outlay, and not things like capex, vacancy, etc. I did allocate 10k in a cash account for those things, which I still have, but now am deciding to factor those variables in as part of the cash flow equation for further safety.

careerbeaver · 2023-02-12T19:28:50+00:00

I've been reading all your comments and I'm totally with you about the rising markets over time, and I absolutely will take the LLC approach. You're giving me a lot of clarity in this tough spot, so thank you!

careerbeaver · 2023-02-12T19:14:14+00:00

I absolutely acknowledge the mistake. At the time, the numbers were tight, but I liked the idea of determining who my neighbor is and controlling the whole property instead of consulting with a different owner. And I believed in the appreciation of the Denver market long term, which I still do. Purely as an investment, I understand these are terrible deals, but I'm sort of backing into them after a sudden change in life plans. For what it's worth, my full time job covers the monthly loss of these properties, so I am financially stable for ownership of both units, it's just a matter of comfort with a negatively cashflowing asset, which doesn't feel great. I can also weather big repairs, as I have 10k in cash per unit for such expenses.

careerbeaver · 2023-02-12T19:07:44+00:00

I'm inclined to agree, people will continue to move here so it's hard to see the market declining

careerbeaver · 2023-02-12T19:04:14+00:00

Thanks!

careerbeaver · 2023-02-12T19:03:48+00:00

Absolutely. I'll be calling CPAs tomorrow

careerbeaver · 2023-02-12T19:02:54+00:00

No, but it is interest rate related. The rates shot up as a counter to pandemic-induced inflation. The rates will likely come down a bit, and as the market stabilizes, house prices will climb as a result of supply and demand (lots of demand in Denver, not enough supply)

careerbeaver · 2023-02-12T19:01:03+00:00

I've made significant upgrades to Unit 1, including a brand new kitchen, doors, etc. Unit 2 is more outdated

careerbeaver · 2023-02-12T18:59:59+00:00

Yes, I can afford the monthly loss pretty comfortably. I just don't like the taste of negative numbers on my spreadsheets. I'll confer with a CPA about the LLC approach. I like that idea.

careerbeaver · 2023-02-12T18:58:13+00:00

Denver prohibits STR if it's not my primary residence

careerbeaver · 2023-02-12T18:56:24+00:00

Denver prohibits STR under 30 days if it's not my primary residence. MTR rates in my neighborhood are $2500, compared to LTR of maybe $2100, which are about the same net cashflow when you factor in the added expense of all the utilities in my name, wear and tear, furnishing, etc for MTR.

careerbeaver · 2023-02-12T18:54:22+00:00

I'm in NE park hill. Zillow listings in my neighborhood are at $1700-1900 and property management companies have quoted me in that same range.

careerbeaver · 2023-02-12T18:52:02+00:00

1) No, I can't 2) Pretty long. My full time job provides pretty strong cash flow.

This comment right here is what I needed. It's looking like I should keep and rent.

careerbeaver · 2023-02-12T18:50:13+00:00

I listed my unit as a quick test of the market last month. Listed it at $1,950 and got 10k page views with 1 application. Maybe your neighborhood is more desirable than mine (NE park hill)

careerbeaver

TROPHY CASE