All Forum Posts by: Brighten Miller

@Gina Nicolas I agree with most of the other comments that all suggest not waiting for the lease to expire. Additionally, if you actually believe your PM is "charging double" I'd look for a new PM.

@Curtis Lipsey

I'm far from an expert and can't answer your question directly... however my limited experience might be useful to help you think from a slightly different perspective... alternately you might get inspired.

I retired from the AF a couple years ago... and purchased a house at every stateside assignment. Becoming a long distance landlord four times over.

1) First, I'm led to believe that "lucked out" that I only had four stateside assignments. Apparently you can't get a 5th conventional mortgage.

2) If you buy were you are stationed you might have the added benefit of being able to buy with conventional (and possibly even VA loans). If you purchase with the intent of making it a rental you can "do all the same research" for rentability with the added benefit of being local. You can develop a rolodex of craftsmen (painter, plumber, carpenter, handyman, etc) and find your property management company (if you want one) while you are still local.

Note: I've bought 4 houses and never once did this... I was always too focused on work... but if you're lucky maybe between you and your spouse you would have the available bandwidth to do it.

3) if you purchase in NM you might benefit from the benefits of a NM LLC...

4) Buying where you live (or at your next pcs) with the intent to leverage it's sale with a 1031 swap for a new investment property (potentially this time in Kentucky(?)) later.

5) If I had to to it all over again I wish I had done 1031 exchanges with each of my properties into a rental/development in Austin such that I would own 4 houses in Austin in 2021... with a single property manager etc. Hmm, maybe I should look into that NOW. Lol. I Just had that thought as i was writing this answer.

6) I ended up (currently) with 4 different property managers. Tl;dr: put as much effort as you can into choosing your management company...

A) First one was terrible, but I didn't know it until I had my first "problem tenant" after almost 15 years.

B) Second property manager was a part timer, friend of a friend, and I was trying to save money. Mistake!

C) Third property manager I put quite a bit of effort in finding. Worked out great until she retired after almost a decade. She sold her business to an associate and it's been great for a couple of years.

D) Fourth manager has been acceptable to good for the last 6 years... with no real complaints... partly because I did a lot of research and partly because I haven't yet had a problem tenant yet to test them.

E) Fifth manager is the new management for the first house... who is by the way the second replacement for that house. The first replacement I interviewed and hired to manage the property, including make the property rentable after the problem tenant "destroyed" it. After two months I ended up firing her, fixing the place myself (I mean hiring contractors etc myself) and hiring yet another management company (third for this propert). Honestly, I'm unconvinced that the current manager is much better than the first... beggers sometimes have to compromise... we shall see.

F) My last property manager is also problematic. I interviewed over 5 companies and really thought I'd done my due diligence (I've got non-trivial experience now afterall) and had a list of probably 25 questions that I asked each prospective manager... Well, in my opinion the guy is an excellent salesman (could sell ice water to an eskimo) and even an adequate businessman... however his parter/daily manager is a pampas ***. He is insulting, does what I consider to be the absolute minimum, and ... well, I'm firing them as soon as I can replace them without a significant "early termination penalty."

Full disclosure: not a lawyer, nor by any stretch an expert. However, I own 4 properties in 4 states and have looked into LLCs "extensively." (I intend to form a WY holding LLC ... eventually and keep putting it off because I don't feel like I have quite enough of the details nailed down.)

I think the answer to your question is technically yes... but it's probably Not the right question.

I believe out of state LLCs CAN hold your property but it is rarely worth it. You seem to gain negligible benefit from doing so unless you file that out of state LLC in FL (in my simplistic view of things this makes your WY LLC also a FL LLC).

What I intend to do is have in state (single member) LLC hold the title with that member being the WY (holding) LLC.

@David Grabiner

Thanks for the information. I'll definitely reconsider putting my local property into an LLC. I'm still cautiously optimistic that my out of state properties will be fine, but as I previously mentioned I'm holding off doing anything until I speak to a CPA.

@Brian Levredge

Wow,  Thanks for the info.   All the more reason for needing to consult with an accountant.

It _looks_ like I should be ok with my current rental properties as they are all outside of TN...  but regardless, it's good to know for the future.

Thus far I've contacted two accounting 'firms' and have yet to hear back.   If I don't hear back today I'll reach out to you.

Wow  the article that @Ali Boone linked was spot on! 

Thanks I will keep an eye out.

@Amit P.

Hi @Rebecca Welch

I have often thought over the years that the small multi-families are smart investments... just never found any for sale!

Thanks,  you too.

Howdy,

I am Brighten Miller and I recently retired from the Air Force and ended up in Chattanooga to be closer to family here in Tennassee, and North and South Carolina.

I currently own four rental properties (purchased as my primary residence at each of my stateside assignments over the years) and am looking into purchasing additional (primarily single family or duplex/triplex) properties here in Chattanooga/Ooltewah as investment properties.

I've been lurking on BiggerPockets for the last few months and even asked a question recently on the forums and decided that I should introduce myself.  Based on what I've learned here at BP and elsewhere, I have pretty much decided that I need to manage my properties better and utilize some asset protection strategies (LLCs and Land Trusts) about which I've recently learned.

I'm currently researching local CPAs and attornies as well as the many many online incorporation/LLC building websites as well as just reading BP articles and forums.

@Michael Lynch ahh.. that makes sense.  I forgot about the "like kind" requirement.   Thanks for the answer.  Guess I just get to suck it up and prepare to pay a bunch of taxes.

Brighten