All Forum Posts by: Alan G.

Samari, Section 8 really has nothing to do with the house per se, it's your tenant that would have a voucher. The local housing authority will do an initial inspection once you sign a lease with a voucher holder and then yearly inspections after but they are mostly safety issues they are looking for. Contact your local housing authority with questions since they all operate alittle different. Then, just advertise that you accept section 8 go find a tenant. However, treat your applicants the same as you would treat others. Do background checks in them just like everyone else.

Ryan, Yes there are lenders out here but you will have to search for them. All of my properties are under LLC's and I found the commercial lending side of our local credit union the best match. They will do a 50k loan but frown on it. Instead, we pay cash for properties and then when we have a couple I'll go and have them do a blanket for all of them. They would rather do a 150k loan over 3 properties than a 50k loan on 1 property.

Lindsay, Def stick to small local community banks and credit unions. I do these types all the time under blanket loans through my LLC and don't have any issues. It may take some knocking on doors though.

Anthony, We always pay cash up front and purchase under our LLC. Once the property is renovated and I have a lease in place , I then go to my lender and do a refinance and take my money back out. My particular lender doesn't require seasoning but I also have to bring him at least 2 at a time for a blanket loan. I found this is the cleanest and easiest way of doing it. Of course, you need lots of cash to pull this off. Alan

Ana, The answer is an absolute yes. I have 1 LLC set up specifically for the property management but owns nothing. This way no matter which of my other LLC's actually own that property my tenants always pay the same company.

Linda, You are right, which will lead me to my next suggestion. Don't do this yourself, hire a professional CPA. I see so many posts on BiggerPockets about trying to save a couple bucks. The reality is it will cost more if you don't hire a pro.

New rule started a couple years back that changed from $500 to now $2,500 max. You can now write them off in the year the expenses came up and not depreciate them. Yes, when I replace carpet and my bill is $2,000 I write it off!!!

John, I'm not sure what you mean by "HUD" tenant. Do you mean they have a section 8 voucher ? If so, you treat them like any other tenant. At the end of there lease just don't renew. Give them notice and abide by the terms of the lease.

Jonathan, What are the value of your properties ? I personally look at what the properties are worth rather than the number of properties in an LLC. I limit each of my LLC's to 600,000 to 1,000,000 in assets each. I may put 10 properties in an LLC that are worth 80,000 each, or 1 property worth 900,000.

Angad, I can tell you from experience that you will find someone that lends in your situation. I own many properties all under LLC's and do blanket loans all the time. Forget about paying 4 pts. Get in your car and go to every small community bank as well as every credit union in your area and ask to speak to someone in commercial lending. These are the people that will do these type of loans. Don't stop at 5 or 10. It took me about 15 stops before I hit jackpot. I now have an amazing lender that does everyone of my deals.