newbie plan- seeking advice from Pennsylvania
Hello,
We are from Pennsylvania and new to investing and hoping to grow. Currently we are working on renting out our former primary residence and have a basic plan and a few questions. We built our plan on a lot of the great advice here- so thankful for the resource! Hoping to get answers to our questions and some basic advice in the following:
- We were going to sell to our existing LLC (for another business) however our mortgage is owned by Fannie Mae and they will not allow sales to a corporation-- has anyone worked through or around this? Two lawyers we talked to seem pretty negative about keeping the property in our own name and understandably, however it seemed we don't have any options.
- In light of prior bullet, we plan to have 1 mill in homeowners insurance and 1 or 2 mill umbrella coverage. We also plan to mitigate risk with a thorough tight lease and active property management (regular maintenance, close oversight, immediate fixes, etc.). Any other suggestions?
- We have had a hard time in the lawyer/lease department. Our first lawyer had a bare-bones lease and seemed to question our desire to add a lot of details to it (not excessive but general coverage of rules and regulations that we've seen suggested on places like biggerpockets). We sought out a second attorney who uses the PA realtor lease template with a very small addendum. This seems to cover a lot and with the addendum I think it would be adequate though again the lawyer seemed slightly negative to adding in a lot of CYA details. I think we may just do it anyway, based on advice of forums and acquaintances who have done the same. Anyone use the PA Realtors lease? Like or dislike for any reason? Any lawyer recommendations in the Philadelphia/King of Prussia/Phoenixville area?
- Also, though we will not have the liability protection of the LLC, we were going to manage the business through the LLC from a veil of privacy standpoint, added professionalism and hopes that we will soon purchase properties through our LLC. Any thoughts on this?
Thanks very much for any and all feedback!