Being my first post I'm just looking for general information. I am young (28) looking to get into long term rentals as investments for the long run. I am in a location where I feel this would be a solid investment. (through lots of research and conversations with others experienced in rentals) My first house I bought back in August of 2014 will be my first rental property. My intentions are purchasing approximately 5 properties over the next 5 years for my long term investing. I have a few questions....
1. I founded an LLC around the same time I bought my house. This was to be used for small construction projects on the side (full time employment is in construction) but it just didn't turn into what I expected it to. It seems like running my properties through the LLC will be the way to go for liability purposes. How is the best way to do this? Use LLC as property management firm? Transfer property I have purchased as individual to LLC somehow? If so...how? Any help would be greatly appreciated.
2. I am in a lucky situation where I should be able to save approximately $20k over the next year for a downpayment on my 2nd property. Should I look at outright purchasing this through LLC? How do I go about finding financing for 2nd property with liability of debt still there on 1st even if I show steady rental income? Once again general info would greatly be appreciated and things to look out for/questions to ask.
3. At what point would you consider letting property management company handle properties? 3, 4, 5?? etc. etc.
4. Any advice to look out for being a newbie as I am expecting to run into many bumps along the way.
Thanks for any advice
1. If your goal is 5 properties in 5 years, I wouldn't bother messing around with LLC, it will just give you headache with the bank and insurance, i learned it the hard way. Just use your name. Since you most likely have mortgage on top of these houses, There is not enough meat for anybody to go after you in the beginning
2.just keep it simple in the beginning, no need to go fancy or complicate yet, Just simply purchase it as a 2nd home under your name
3. my magic number is 5, once i reach 5 properties, i wouldn't able to handle it myself with a day job anymore
4. Just push forward man. you are on the right track I recommended reading book such as 10x rule / The one thing/ Rich Dad Poor Dad to keep you on motivated. Go out there, make friend, and make thing happen
Welcome to Bigger Pockets community. Be sure to check out “Learn” for all kinds of useful resources and free how to guides.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing