All Forum Posts by: Charles Carillo

@Noyessie Hubert

Paying rent is not losing money. You are paying a set fee that during your lease period will not exceed the exact amount you agreed to ($1400). When you purchase a property, yes you are building equity (minimally in the beginning) but you there are additional fees and expenses that you will incur. HVAC or appliances need to be replaced, the HOA has an assessment, the HOA increases its annual fee or your insurance/property taxes increase. Even small repairs add up (both time and money) over the years. If your real goal is to purchase an investment property, maybe save up for that while you are renting.

@Sandy Keller

Each time I speak to an investor that has purchased a home warranty; they complain about it. If a tenant's air conditioning goes out in July, are you going to wait to file a claim, get it approved and then fix it? I doubt your tenants will be willing to wait more than 24-48 hours. Maybe you need to repair it and then submit receipts and wait months to get paid. Choice charges a $85 service fee that you need to pay to the tech when they arrive (not matter how large or small the repair is). Most plumbing stoppages can be cleared by a handyman for less than $85. I would also read the fine print and see what is actually covered, what is not and what requires an additional service fee. Many of the items are limited to $500. 

https://www.choicehomewarranty...

@Kenny Breeze

If you are worried about them defaulting, I would request a larger down payment. You can also request that they get a term life insurance policy in case they pass, you will get paid.

@Emmanuel Sanchez

You are definitely right on having the new adult complete an application and sign a lease (if approved). Were you aware of them planning to move these people in prior to signing a lease? Are you covering any utilities at this property or does the tenant cover them all? They asked you before they moved in and they are adding 2 more people to a household of 5 already. In most situations I would not renegotiate the lease.

@Juan Vargas

You have a personal home with a FHA mortgage and you want to access the equity, put it under a LLC and move out, is what I understand.

If the property is already owned by a LLC, it might not be possible to refinance it through another residential loan. You might need to refinance it as an investment property but the rate will be higher.

If the property is not owned by a LLC yet, you can refinance it or take out a HELOC but you need to be living there since you are most likely telling them that it is your primary residence to get the best rate. You need to be careful that you do not lie to the lender.

@Padam Neopane

Possibly a non-refundable deposit/fee upfront and then a monthly fee on top of that.

@Stefan Demopoulos

No you do not.

@Menachem Krasnjanski

Yes, this is the unlicensed practice of real estate and in Florida it is a third degree Felony.

Florida Real Estate Activities Requiring Licensure (probably very similar in NY):

• Advertising or marketing another person’s timeshare or property for compensation.
• Auctioning or attempting to auction another person’s property for compensation.
• Buying or attempting to buy real estate on behalf of another person for compensation.
• Listing another person’s timeshare or property for compensation.
• Operating as a real estate broker or sales associate without a license.
• Renting, leasing, or attempting to rent or lease real estate on behalf of another person for compensation.

@Dayanis Acosta

A couple years back, my wife and I setup a very in-depth asset protection plan. Feel free to DM ME and we can discuss. I am not an attorney and I do not want to provide specific details in a public forum.

@Robin Lee

First off, I would take care of the roof (if required), mechanicals (hot water heaters and HVAC), electric and plumbing. These are really the "bones" of the property and if there are any issues with them; it can balloon into even more serious problems. You can then start on the individual units and rent them out as you go. You also want to make sure that your common areas are in "rentable" condition. Common areas like; hallways, stairs, porches, yard, driveway etc. Potential tenants will see these first.