All Forum Posts by: Brien OConnor

If you're still looking Mike Heslop at Bloodhound Inspections is my guy.  Mike even inspected my houses I have in Lampasas at no additional charge. 

Hello @Tim Phan that I wouldn't buy something that doesn't cash flow for you.

Definitely late here, but I'm an insurance agent and somewhat new investor.  No, I don't insure my own home or properties.  I use a buddy who specializes in "personal lines" insurance.

I can assure you, you'll be amazed how inexpensive it will be to go from $300,000 liability to $1,000,000. That's what I would recommend. I each SFR I would have $1M limits. I would have the insurance in the name of the LLC - transferring it through a quit claim deed as soon as you can. I would also recommend buying at least a $1M umbrella in the name of the LLC as well. All of this is not very expensive and you roll it into your escrow.

Congrats @Melissa Kaatman-Boettge. It will be fun! I'm in Texas. I'm not sure it's so different, but I set up my LLC without the help of an attorney. It really isn't very complicated. The forms are pretty self explanatory. Regarding a Series LLC, I listened to the BP podcast about them and was intrigued. I was all set to create a series LLC. But the more I listened to other BP members, I realized that with only 3 units (two SFR one apartment) I still didn't really need a series. Some will argue you don't even need a LLC. I disagree. I have my own home, a nice 401(k) and other assets that I worry about. I purchased my policies for each property under the LLC and had the agent increase the LIABILITY to $1,000,000 on each. I have another umbrella policy in the LLC name for another $2,000,000. My bookkeeper is very good at keeping the accounting separate. My wife and I hold "corporate meetings" and discuss the properties and keep records. Now, are we suit free or safe? Is anyone? That's my 2 cents!

Thanks @Jeff B.  I'm accounting illiterate.  I'll leave it to the pros.

Good luck from one Texan to another. I live in Austin but am buying property an hour away. Prices are crazy high in Austin but very reasonable further away. I'm 59 and only have 3 units so far so you're not too late! Good luck!

Good suggestion @Rob Harris  Thanks

My wife and I created our LLC for our rental properties here in Texas. We now want to do a Quitclaim Deed from our names to our LLC. My question has to do with wording. My wife and I reside in another county than our property. Do we word the deed as John Doe and Mary Doe of Travis County (where we reside) or of Lampasas County (where the home we own is located and we are transferring).

@Derrick W. Morning Derrick.  Like you, I'm investing in smaller towns in and around Austin.  I found that I couldn't find anything of value unless I went out to Hutto (north) or Kyle (south).  And then the homes were all $190K and up for "little houses on the prairie".  

Like you we then looked in towns an hour or so away.  What a difference!  We bought our first home for $77K.  We put about $30K into it and I feel if/when we sell we'll get at least $150K or more.  We have it rented and it's cash flowing nicely.

We are closing on our second home next week (FNMA repo) for $93K and probably looking at $25K into it as well.  BUT it has a detached garage with an apartment (needs work) so that will also cash flow well.

There are NO property managers in this town either.  But I now have two good local contractors who will fix any "issues" quickly since I pay them promptly.  I feel doing a good "rehab" will cut down on any "come and fix it" situations.  Also having good tenants.  I'm going to try to concentrate on military officers.  That's who I have in the first home.  Solid tenants.  Rent checks come from their bank like clockwork.

In short....so far so good for small towns.

Thanks @Chris Walters.  I may take your advice.  I'm in the insurance business, and for many years I did my own accounting with Quickbooks.