Closing on my first multifamily... questions

[Brian Orr]

I have a ton of questions, but first and foremost the situation Is that my wife and I will be managing this 4plex ourselves. we also have more units we wIll be purchasing and managing before the end of the year. Primarily I’m looking for any tips, references, recommendations on legal and accounting, management software, LLC setup for each property (legalzoom?), should I setup a management company to keep the ownership/mgmnt separate? Or anything else, please feel free to offer any advice from multifamily management experience. I’m all ears! Thanks as always BP!!

[Bjorn Ahlblad]

@Brian Orr Congratulations! Our lawyer suggests 3 properties per LLC and keep them around the same value. We have properties in LLc's and others in a 1031x. If you use LLC's buy the properties that way switching them later will cost more and add a little more complexity. LLC's are all the rage these days; but they are not the panacea folks think they are. Make sure you have ample liability insurance whatever you choose. If you were to get sued an opposing lawyer will not be stumped by your LLC. We manage most of our properties ourselves and use a PM for others. We have separate bank accounts and credit cards so for us there is no need for any additional software etc. The bank takes care of reports and I hate unnecessary complexity. I am not suggesting you do it that way, simply what works for us. Make sure you have a decent CPA and use him/her to help you evaluate financials of apartment buildings etc. aside from just doing your taxes. In addition we belong to our state LL association, they have been a tremendous help and fun networking too. Between them and BP it has worked out well. All the best!