All Forum Posts by: Brittney Yang
Brittney Yang has started 5 posts and replied 9 times.
Post: How To Structure A Partnership For Duplex Investment
- Posts 9
- Votes 2
Quote from @Ashish Acharya:
@Brittney Yang To structure a short-term partnership for your duplex investment, establish a joint venture or LLC with clear roles, responsibilities, and a timeline for dissolution. Allocate equity based on contributions: you provide the $235K HELOC and management, while your former boss contributes renovation expertise and labor. For example, you might agree to a 70/30 or 60/40 split, depending on his level of involvement. Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.
Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income. Capitalize renovation costs to increase the property's basis and reduce future taxable gains. Profits during the partnership can be shared based on the agreed equity split, with income and expenses reported via K-1 forms. Make the offer appealing by highlighting the short-term ROI from his renovation expertise and potential profit-sharing during the partnership. Outline a clear exit strategy to meet your long-term goal of retaining the property for cash flow.
Work with a CPA to ensure tax efficiency, particularly around depreciation, capital gains, and partnership income. Consult a real estate attorney to draft a comprehensive agreement that includes clear terms for profit-sharing, buyout provisions, and dispute resolution, ensuring the partnership is mutually beneficial while minimizing risks.
This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.
I am sorry that I missed your response on this. Very thoughtful! I appreciate your time in providing an actionable answer. Thank you!
Post: BPCON 2025 Ticket Transfer - how does it work
- Posts 9
- Votes 2
Hi, I am interested in purchasing a ticket from another member but I am unsure of how the process works. We are both wondering how we can feel secure in the transaction process. I would appreciate anyone that can speak on the process and their experience.
Thanks!
Hello, do you still have 1 ticket available for the $700?
Post: Go-To Supplies/Materials for Long Term Rentals
- Posts 9
- Votes 2
Thank you! I will look into this, looks like there is one in Charlotte. I’ll check them outz
Post: Go-To Supplies/Materials for Long Term Rentals
- Posts 9
- Votes 2
Hi! Closing on a condo next week. 2 bed 1.5 bath 1100 sqft. Curious to know what you would suggest for durability and longevity for a long term rental. Specifically flooring and tile options. I’ve never done remodeling and we are replacing the carpet with wood floor. I see that flooring with backing is an option, waterproof, scratch resistant, etc. What have you found is worth the money and what isn’t? If you don’t mind sharing, I’d love the advice!
Thank you!
Post: How To Structure A Partnership For Duplex Investment
- Posts 9
- Votes 2
@Ben Trageser those are excellent points, thank you for the perspective!
Post: How To Structure A Partnership For Duplex Investment
- Posts 9
- Votes 2
My former boss and I have discussed partnering on flips. He has extensive experience with hotels and renovations. I have run numbers for LTRs on a set of duplexes that seem to cash flow well. I'd like to bring him in to assist with the renovation expertise as well as access he has offered to his labor pool. I am looking for suggestions on how to structure a partnership (short term) that will benefit him but allow me to be dissolve our partnership after a couple years as he isn't interested in long term holds.
Asking price is $998,000
2 duplex units on 1 acre in good location.
It's been on the market for a while, so I believe we could offer slightly above $900,000 and be considered.
I would increase the rent after updating each unit. All are perfectly functional now, but could pull higher rent with replacing the flooring, and updating the kitchen.
My current financing setup for this deal would be $235,000 from the HELOC I already have secured. Primary residence is paid off.
Then the rents would cover that payment plus the mortgage with cash left over. I also have some cash reserves that I plan to dump into a contingency fund for each unit.
This deal looks really solid to me, but I have only been looking at rental properties as high as $600,000 in discussion with my lender. I'm assuming I won't have that high of purchasing power, and therefore I believe partnering with my former boss would provide the "backing" i would need.
My overall goal is to obtain these units and have them long term into my retirement for cash flow. I would like to be in the partnership for the least amount of time possible but want to be sure I can present this offer as worth his time, which is very valuable.
What would you do?
Thank you!
Post: Where to source a new build Duplex on family land
- Posts 9
- Votes 2
I will be obtaining half acre of family land this year. I would like to build a duplex on it for long term rental income. I am wondering if prefab or stick built would be the way to go. I'd love to hear anyone's experience in the construction of a duplex on land. Nothing very large or over the top. I'm thinking 2 bed / 2 bath. First time investor, hoping to obtain my first duplex soon, and this family land purchase is on the horizon as well. Looking to construct a duplex at a reasonable cost but also quality for long term durability.
Thank you!
Brittney
Post: BEST WAY TO RUN NUMBERS ON A 4 UNIT PROPERTY. 2 STRs and 2LTRs
- Posts 9
- Votes 2
I'm trying to analyze my first property and not sure how to set it up to run the number using the calculator tools here. 2 of the units are successful Airbnb short term rentals, and the other two units are month to month rentals to existing tenants. I believe we would maintain this setup if we purchase the property.
This is my first post, just looking for guidance, not sure what I need to provide, but I'm sure someone may have experience with this.
Thank you!