All Forum Posts by: Christopher Robert Noland

 It is only a good deal for appreciation, there will be no cashflow unless you buy it outright....and for that amount you could a portfolio of cash flowing duplexes in the midwest.

So what is the goal? To own and let the CA property appreciate or Cashflow?  Condo does not come with land, not a great investment property option, usually most people start with 2-4 unit properties or house hack them.

Personally, if i was just starting and I wanted a San Francisco property I would use the cashflow from my midwest rentals to fund it.  

But since we are near the top of the market in SF, I would be cautious about investing in that area unless its an extremely good deal, and for those, you need to learn how to find them off-market before an agent lists them.

If you want to learn how to find off-market properties, I might be able to help you.

 NO.

 Some people do not drink, and, alcohol that you provide can bring you liabilities. I would stick to a simple welcome gift.

 To my understanding, the legal out of state entity can own the property AND manage the rental property because it is passive income...But California and New York may have different laws you need to check.

Generally, The requirement to register an LLC as a foreign entity in another state generally depends on whether the business is considered to be "doing business" in that state. Here's a breakdown of when you may need to register as a foreign entity and when it might not be necessary:

Passive Income (e.g., Rental Properties):

• No Active Business Operations: If you own a rental property that generates passive income (e.g., rent), it typically does not require you to register as a foreign entity in the state where the property is located. This is because collecting rent is often seen as passive income, and the state may not consider this "doing business" that would trigger the registration requirement.
  • However, states like California or New York may have specific rules, so it's wise to check state-specific requirements.

Active Income (e.g., House Flipping):

• Active Business Operations: If you are engaging in activities like house flipping, property development, or property management, this would likely be considered active business operations. In this case, you would generally be required to register your LLC as a foreign entity in the state where you're conducting these activities because the income is active, not passive.

Gray Areas:

• Hybrid Cases: If you are managing the property actively (e.g., handling leases, repairs, tenant relations directly), some states may view this as doing business and require you to register.

Ultimately, it is state-dependent, and some states may have stricter definitions of what constitutes "doing business." To be safe, it's best to review the specific laws of the state in which you own or plan to own property. Consulting with a lawyer or a CPA familiar with multi-state real estate investing can help clarify your specific situation.