All Forum Posts by: Alex Waugh

Sure thing. I've got both of my LLC's based out of Oklahoma. I found out you can originate an LLC there even if the business is in another state. With Oklahoma, all you need is about half an hour on the Secretary of State's website and $100 to set one up. Applying for an EIN afterward is free too. There is only a $125 annual fee every year afterward. However, if you would like a professional to help you, I recommend Incfile. You can find them in the link here https://www.incfile.com/. They've helped me in the past and have been awesome. I'm not a tax advisor, but before you start, being from California I would make sure you talk to your tax advisor first so you don't get caught off guard by any Franchise Tax Board fees on the backend if there are any. I would also recommend anyone interested in LLCs to talk to their tax advisor first no matter what state they live in.

Hope this helps!

 I'm glad I could help! Keep hustling.  

 You're absolutely right. Thankfully, the rest of the property checked out perfectly. I just needed a place to park my money. 

@Mark Keeler,

No, even though I know BP has a great rental calculator, I use an excel spreadsheet for my cash flow analysis. You can create your own or download free templates from google. They might not have the graphs and other visuals like BP, but the numbers are there. 

@Son Tran

I'm glad I can help! I agree, we always should learn from each other. That is why I enjoy BiggerPockets so much. I see you're from New York City. If you're looking to buy out-of-state I highly recommend this BiggerPockets published book. There is a lot of great info in there. Thanks for being an active investor!  

@Son Tran

The listed price was actually $390K...$20K difference from the purchase price. I started at $360K, they dropped their price to $385K, and we went back and forth until landing on $380K if they paid all closing costs. We move forward and I get a home inspection that mentions the roof was worn way down for what it should be. I hired a roofing contractor to take a look and he said the whole thing needs to be replaced in 3-4 years due to hail and wind damage and not the best install job either. 

After making the seller aware of this they used insurance to replace the whole roof because I said I wouldn't buy it otherwise. $17K later the job was done. The appraisal came back to value the property at $370,000 so I agreed to that paying my own closing costs. 

The whole project was turnkey. I've been in California for several months and bought it while out-of-state. Each side rents for $1500/mo. 

@Alyssa Dyer

Yes! Good eye! Thank you for the compliment. 

@Son Tran

Thanks for reaching out. The duplex cost $370,000, 6 Beds/6 Baths, 3,282 Sq. Ft. for both sides combined. For financing, I simply did a conventional commercial business loan through a bank (buying the property through my LLC) putting 20% down. I'm looking to do the same structure for when I buy a quad next. BiggerPockets is a great mentorship program through all their books, videos, podcasts. I'm building "the stack" as Brandon Turner talks about.

@Anthony Petrozzella

My name is Alex. I'm glad to hear Oklahoma has caught your attention. I'm a property investor in the state as well. I just bought this duplex in Edmond a few months ago. Looking to buy a quad next. What are you shopping for? Quick Tip: If you're investing in multifamily, always make sure each unit has its own meter. Otherwise, you could be caught with the bill each month. 
 

Checking for a meter on each unit is the first thing I look for on any multifamily property. If you're not careful, you as the landlord could get stuck with the bill which could diminish all cash flow. Make it a habit to only entertain certain properties that have their own meter and it will make life much easier. Also, trying to convert a property with only one meter to multiple meters is just too time-consuming and expensive anyway. There are enough things to think about in real estate, splitting the electric bill between multiple people doesn't have to be one of them. 

However, if you're in a situation where each room in a unit is rented out individually, all the tenants should split the cost equally among themselves because they all share the common rooms, kitchen, etc. 

@Ty Pierce, we all have been in a spot where our credit could be better! Something to consider is buying a property that doesn't require the lender to base your approval off your credit, but the actual profitability of the property instead. That's what commercial real estate does. Multifamily units of 5+ are considered an apartment complex where they would base your approval by the income the property would bring in. You could either buy one yourself or JV with someone, but either way, it is separated from your personal finances. Hope this helps! - Alex