All Forum Posts by: Cameron Tope

Hey Chris,

This is really a personal preference. If you use a HELOC, it will be a variable rate, but you won't have to make payments until you actually use the money. While for a refinance, you'll have all your money at a fixed rate, but you'll immediately start making payments on the funds.

If you know that you're going to be in acquisition mode for the next few years, then I would refi, but if you just want some funds to pick up a good deal or two that come across your desk, then I would stick with the HELOC.

Best of luck!

Hey Shyam,

I agree with @Wale Lawal - you're going to have a hard time finding 15% COC return deals unless you're taking debt paydown and appreciation into consideration. Even then, you're going to need to get hooked up with a solid wholesaler or start marketing aggressively.

Let me know if you need a good wholesaler. I have worked with many and there's only one I trust. 

Hey Kunal,

What's your goal? Is the property a value add where you can increase rents? Is it in a high appreciation area? Are you wanting to live off the cash flow? 

I would normally not recommend folks to buy a negative cash flowing property. However, there are circumstances where it makes sense. So, without knowing your goals it's hard to say. 

Hey Joseph,

Thanks for sharing!

I don't agree with number 3 and 4 - you still get all the same tax benefits whether the property is in an LLC or your personal name, and you can very easily set up a separate bank account for each property.

Also, number 1 is true but even with your rental property in an LLC, if you are ever sued personally, then your rental property is fair game.

LLCs are great, but they seem to slow down most new investors and can make financing more difficult. 

Elisha,

Unfortunately @Will Gaston is correct - odds of getting your money are pretty slim. 

However, we always file a judgement after the tenant leaves by turning them over to https://www.rentrecoveryservic...

It will stay on their credit until they pay and we have had tenants pay once they received the letters. 

Best thing to do is preventative maintenance walks to catch these things early, because once they happen, it's a pain in the rear. 

Also, you may want to have a look at your screening process to see if it's missing something that would have prevented this tenant from slipping through. You can check out our website if you want to see our screening criteria. 

Best of luck!

Rob,

You actually see homeowners holding off listing their houses? 

I would think most homeowners would want to take advantage of the high prices?

Then yes, you'll have to use the same LLC as your income.

Tough spot. But good news, it gets easier!

Hey Chris, 

I would start with the BiggerPockets podcast and check out the books in the BP bookstore - specifically "The Book on Rental Property Investing" and "Finding and Funding Great Deals". 

Best of luck!

Hey Mike,

What are your goals? If you're trying to acquire rental properties for building wealth, then keep it! If not, then you could sell it, pay the taxes and use the money on whatever. 

Unfortunately, most real estate investors, get caught up in the short term gains and lose sight of the long term benefits. 

If you want to create long-term wealth, keep the rental.