Investor · Denver, CO · Member since 2016 · 9 posts · 3 votes
Hi Everyone,
I am newer member on Bigger Pockets. Thanks you all for all the help an advice.
I just had an offer accepted on a property in Grand Rapids. I currently live in Denver Co and will be moving to Grand Rapids in about a year or so. We are going to use this property as a rental property. We may occupy it when we move to GR or just keep it as a rental.
Does anyone have any property management referrals?
This is also our first rental property. Have any of you set up an LLC for your rentals or have advice about that?
You asked about LLC. If this is your one and only rental I would advise you to reconsider it until you get a few more rentals. Why? Because you can achieve asset protection using Home owners insurance and an umbrella policy. I've read quite a bit on BP and seems this is what others are advising. I would encourage you to look around on the site for some supporting arguments why it's best to hold off when first starting out. It will come in handy when you accumulate more properties. Here's a blog on it but there's many others on the site:
I have two rental properties and I just got an umbrella policy so I'm covered for now. I'll revisit the LLC when I get a third, fourth, etc. Asset protection is a must; LLC - maybe, maybe not so just know the facts.
BTW, I am also considering buying some investments in GR and I, too, live in Denver. Is it possible to chat over coffee or the phone sometime? I'd like to know more about what motivated you to invest in GR and what sort of market analysis that you've done on the area there . . . did you consider other areas in MI/midwest? ETC. Any help is appreciated. I fly out tomorrow to GR to scope the city out and meet with a few people but I'd love to hear your perspective. Thanks and good luck with the rental.
Investor · Denver, CO · Member since 2016 · 9 posts · 3 votes
10y
Thanks Lora!
We are investing in Grand Rapids for "other" reasons I suppose. No Market analysis or anything. We grew up in Northern Michigan and want to live near Family again. Additionally we have been priced out of Denver. We have remodeled 3 properties here and have done very well on them. We still cant afford to buy a house here though ( or I guess willing to pay the prices).
I have read good things about Grand Rapids though and we enjoyed ourselves when we visited.
Residential Real Estate Broker · Littleton, CO · Member since 2016 · 22 posts · 5 votes
10y
Absolutely! Laura Livingston at Beacon Property Management is great. We had been using another company but the communication was always an issue. Beacon is on top of it. They have a good 'crew' in place for any kind of repairs, prep for rental, vetting potential tenants, and their communication is the best. I'd be happy to give you their contact info if you want to send me a little message. Hope that's helpful.
Attorney · Denver, CO · Member since 2015 · 207 posts · 104 votes
10y
Hi @Jake Lampinen, congrats on your new home in Grand Rapids! I'm a Denver RE attorney, and I would be happy to speak with you about setting up an LLC for your CO rental.
To clarify, an umbrella policy and the asset protection of an LLC are NOT synonymous, and they typically do not afford the same protections. To give an example, an umbrella policy ordinarily will not cover "intentional acts"; therefore, if a tenant (or prospective tenant) decides to sue you for housing discrimination, your umbrella policy might not cover you.
Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
10y
Jake Lampinen yes get an llc... Like was previously said, an umbrella will cover all your properties at once with one company. That doesn't mean your protected legally. If your car insurance decides not to pay out on a claim, because of the tiny type, it comes out of your pocket. The same is true with home insurance. It only cost $50 a year per LLCs, to file the taxes on a real estate LLC. That's what my cpa charges. I own multiple properties.