All Forum Posts by: Alex Orrson

@Kevin Sobilo

Thanks for the information. I'll check out that book.

Ideally, I'm looking to house hack on this first deal and finance it through an FHA or owner occupied loan. However, after running the numbers on a lot of properties, I've found it's a lot harder to get a decent cash flow with the 3.5% down only, so I'm considering saving up more to do a conventional loan as a back up option.

Either way, if I decided to use an LLC for this first purchase, I would most likely take the loan out in my name and transfer it into the LLC, taking the small risk of the note being due.

I was planning to use umbrella insurance on this first property and create the LLC at a later point in time for my larger acquisitions (small commercial multi family - like 8-12 units). However, I'll look into creating the LLC from the start if PA is one of the cheaper ones overall.

Would you recommend doing it through a lawyer or using a service like Legal Zoom?

Hi all,

I'm pretty new to REI but have read a few of the BiggerPockets books. I'm looking to start with a buy and hold duplex in the next few months, and continue to scale up to higher unit multi-family properties in time.

I know that it's recommended to use a separate bank account for my real estate properties than my personal account. However, I'm not sure if this should be a separate account that is still in my personal name, or if this should be an account in the name of a business (I'd have to create an LLC for this). My long term plans are to continue to acquire properties so I will likely need an LLC eventually, but I was thinking it'd be best to create that after my 2nd or 3rd deal since my total risk will be lower until then.

Is it best to create this separate REI account in my personal name or in the name of a business?

As an additional question, I wanted to know how many bank accounts per property are recommended. From my readings online, I've heard suggestions to create up to 4 separate accounts per property.

1. Checking account

2. Savings account (for CapEx)

3. Account for Security deposits since they aren't the landlords money officially

4. A credit card account

I've also read suggestions to create separate accounts per property. Creating 4 accounts per property seems like a lot considering I'm looking to scale up, and I'd quickly have 10+ total accounts Is this something that you'd recommend? To have these 4 types of accounts for each individual property.

Thanks in advance!

@Scott Williams

Thanks for the input also. I appreciate it.

@Brandon Rush

Okay that makes sense. Thanks again Brandon!

@Brandon Rush

Thanks for all the great advice. You answered a lot of things that I was questioning and provided some great creative solutions.

Yes, I'm viewing the MLS through a few different apps like Trulia and Redfin. I haven't started working with an agent yet but will be moving into that soon.

A followup question: As owner of the property, are you legally allowed to remove a tentant through eviction even if they didn't do anything wrong such as miss a payment? (This would be if they didn't leave when asked or take the cash for keys.)

That's awesome that you're on your second house hack.

Hello all!

I am fairly new to REI. I've read several of the BiggerPockets books and feel ready to purchase my first property. I am looking to start with a small multi-family property and house hack.

I have found a few potential properties in my area, however many of them are already fully rented by tenants. Does anyone have tips for finding properties that have room for owner occupancy? Would the only way to get into a fully occupied rental property be to wait for a tenant's lease to end?

I'm looking to finance it with an FHA or owner occupied loan, which would require me to live in it from the beginning.

Thanks in advance for any help. Feel free to connect and swap ideas. I'm a spreadsheet pro!

-Alex