All Forum Posts by: Brian W.
Brian W. has started 19 posts and replied 60 times.
Post: A few questions regarding the 50% rule
- Peachtree City, GA
- Posts 60
- Votes 1
All of this is fantastic advice. Thank you to everyone for your advice.
Post: Question about ability to pierce corporate veil with real estate held in LLC
- Peachtree City, GA
- Posts 60
- Votes 1
Great advice Bill and Jerry - thank you. And a big thank you to Bill for giving such a detailed response!
Post: A few questions regarding the 50% rule
- Peachtree City, GA
- Posts 60
- Votes 1
Is simply applying the 50% rule running the numbers? In other words, can I simply calculate what my P&I will be and as long as it's 50% or less of the expected rent, then the deal has potential? Can this replace other, more in depth methods of running the numbers such as calculating the cap rate and CCR?
Also, how does a down payment play into the rule? It seems that in a small down payment scenario, the numbers might not work, but they would work in a higher down payment scenario since the monthly debt service would be lower. Why would the latter higher down payment scenario get the green light, but the former lower down payment scenario get the red light since the down payment is still an expense that comes out of the investor's pocket? It seems like it should play into there somehow, but I'm not sure how since I haven't read anything that mentions where the down payment comes into play with the 50% rule.
Post: Insurance value
- Peachtree City, GA
- Posts 60
- Votes 1
Originally posted by Kelly N.:
Yep. Exactly. All too often, the problem isn't being overinsured, but rather underinsured. Replacing a home after a total loss if far more costly than buying an equivalent existing home.
Post: Question about ability to pierce corporate veil with real estate held in LLC
- Peachtree City, GA
- Posts 60
- Votes 1
If I buy a single family home to rent out in my name with a mortgage in my name, then quit claim the deed to my real estate LLC with the homeowners insurance for that property in both my name and the LLC's name, will this compromise the integrity of the LLC? In other words, will doing this make the LLC more vulnerable to someone being able to pierce the corporate veil?
Post: Want $12,000? The $100 Expense Reduction Challenge
- Peachtree City, GA
- Posts 60
- Votes 1
Originally posted by Joe Bertolino:
The only real ugly claim I recall is a investor in Napa with an ACV policy he wouldn't move because my RC quote was $180 high. He had a fire and the new ordinances required interior sprinklers and AFCI electrical. They paid him $160k (the ACV from 12 years before when he bought the policy and never increased coverage) and the quote to rebuilt to current codes was $480k. He took the $160k and sold the lot/burned dwelling for $160k. The new buyer rebuilt for $400k and immediately sold it for $867,000... but hey, he saved $180 on his insurance for a few years.
For the $100 challenge, I am waiting on a quote for solar on two of my four plexes. I was told there is no out of pocket cost and it will save approx $300 per month between the two properties but I am waiting on the dirty details.
Originally posted by Troy Fisher:
I didn't actually get a quote on solar panels because the research I did said it was gonna cost my 3-5k per roof to install panels on my plexes. Of course the best thing would be to be in an area where you can also install a battery so that you can charge the tenants for power, and then sell the rest back to the power company. The upfront cost is beyond my budget but it could add another revenue stream or two to the property. Plus the tax benefits. I'd be interested in hearing about how the process actually plays out for you.
Here are two articles discussing a new initiative from Honda where they are offering a really great deal to customers of new solar installations:
Honda makes very favorable financing available to new installation customers thus making your upfront cost zero or near zero.
They're offering it to current or previous owners of a Honda or Acura vehicle as well as those who have simply registered on either of their websites: honda.com or acura.com.
For now, this offer from Honda is only available in 14 states and those states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, New York, New Jersey, Oregon, Pennsylvania, Texas, Washington, and the District of Columbia.
Post: What potential breakables do you remove from a property prior to renting it?
- Peachtree City, GA
- Posts 60
- Votes 1
Originally posted by George P.:
there was a great thread called "how to harden your rentals".... very good ideas/suggestions.
Just found it - thanks for the heads up. You're right, there is some great information in there. Here is the link for others.
Post: Want $12,000? The $100 Expense Reduction Challenge
- Peachtree City, GA
- Posts 60
- Votes 1
Originally posted by Brandon Turner:
I'm very interested in dropping my property tax amount! Steven Hamilton II any tips on how you did that!?
I am paying $10 per month for an "e-fax" service. Anyone know a good free version that still gives me a dedicated fax number? That would be a start!
Post: What potential breakables do you remove from a property prior to renting it?
- Peachtree City, GA
- Posts 60
- Votes 1
This is all great advice. Thank you to everyone who has posted thus far.
Moving forward, if you want to post things you add to a house, that would be great to hear too.
I know it wasn't the original focus of this thread, but instead of starting a new one and since some posters have already started posting them here, I'd like to keep it going as it is very helpful advice.
Post: What potential breakables do you remove from a property prior to renting it?
- Peachtree City, GA
- Posts 60
- Votes 1
This question and thread was born out of some very good advice concerning "eliminations" Scott W. and David Krulac gave in another thread.
What things do you "eliminate" or remove from a home before renting it in an effort to lower the number of breakables in and on a house?