All Forum Posts by: Adrian Brown

I understand that me and my wife can both be on our Texas LLC, and we can still file as a Single Member LLC so that we have a disregarded entity from a tax perspective, but we still have the liability protection. In fact, Senate Bill 2314 went into effect 9/1/2023 for this scenario. My question is, is there something a person must do when forming the LLC to designate the status of "Single Member" so that we have pass-through for income/losses instead of a partnership with K-1 documents, or is this "Single Member" status just something we tell our CPA during tax time so they know to treat all income/losses?

I understand that me and my wife can both be on our Texas LLC, and we can still file as a Single Member LLC so that we have a disregarded entity from a tax perspective, but we still have the liability protection. In fact, Senate Bill 2314 went into effect 9/1/2023 for this scenario. My question is, is there something a person must do when forming the LLC to designate the status of "Single Member" so that we have pass-through for income/losses instead of a partnership with K-1 documents, or is this "Single Member" status just something we tell our CPA during tax time so they know to treat all income/losses?

I have rental properties in KS & TX and I use property management companies to run them, but I'm "active" since I materially participate and often make decisions regarding tenants, repairs, HOA notices, and major repairs since I research those and hire contractors myself. Today all profits & losses simply hit my Schedule E tax form. However, I'm considering setting up a LLC as a holding company with tax status of an S-Corporation, and then two subsidiary LLCs to hold my KS & TX properties which will not be S-corp status, just pass-through up to the holding company. I know the LLCs will provide a layer of protection in addition to my umbrella insurance policy, which is great. However, my biggest question is, if I do this, am I able to pay myself a "reasonable" salary as a W2 employee within my holding company? If so, I'd also like to open a Solo401k so I can invest my salary into that retirement account. Can anyone tell me if I'm allowed to do this since my status is "active" or would I need to be a "professional" status? In case it's helpful, I'm also a W2 employee with typical day job where I also have a 401k with that company.

Lance & Dylan - thanks for the input, that's what I figured. I've run numbers and seeing a decent CoC return, and obviously I can input my addtl expenditures for repairs to see how that impacts the deal, and make my decision based on that, but was just wondering what some folks who have bought some properties have been spending after closing, but as expected, it will vary widely depending on the condition of the property at acquisition. And yeah, I'm definitely looking to get into the game.

Hi everyone - I'm potentially going to get into my first investment property soon (duplex), and I know there are items that must be repaired and I can negotiate with the seller. I also know there will be a need to invest some money after closing for repairs & improvements, and on that point, I'd like some feedback on the average amount of money many of you are investing after closing.

Thanks in advance!

Hi Everyone,

In general, for you investors that are active in the KC, MO areas, how is the market from a cash flow perspective? Also, what is your opinon on SFR vs MF in that area?

Adrian

@Jon Huber 

Jon - you're absolutely right, I love numbers, details, and analyzing before moving on something. I'm a numbers guy and like to calculate risk and know what I'm getting into, so I certainly feel fine with that aspect. As of now, it's just soaking up the knowledge and beginning to organize my ideas. Also, I see you're from LA, I lived there about 5yrs ago...

Hi Tuan - Yes, rentals are what I'm thinking, but we'll see where things go as I continue learning about the few aspects of RE.

Jon - you're absolutely right, I love numbers, details, and analyzing before moving on something. I'm a numbers guy and like to calculate risk and know what I'm getting into, so I certainly feel fine with that aspect. As of now, it's just soaking up the knowledge and beginning to organize my ideas.

Guy - I totally agree, I'll do what I can to make my rounds. Any suggestions?

Andrew - I'm a huge fan of reading and I'm looking forward to building knowledge quickly.

Scott - Great info on the Thur 11:30a mtg, I work about 5min away from there, so I can join those easily. Do you know if I can just drop in or do I need to "sign-up" somehow?

Hi Derek - Welcome to BP, I just joined in the past couple of days. I see you made an investment in an Austin property, and if you have time and the desire, I'd like to know about your experience (eg. what side of town you invested in, how you found the property, etc.)

I'm still watching bp videos and reading forum posts to discover the resources to find my way, but figured I'd get your input, but again, only if you desire.

Thanks in advance.

Adrian