All Forum Posts by: Christopher Robert Noland
Christopher Robert Noland has started 2 posts and replied 74 times.
Post: Invest in Bay Area California? Just starting Out
- Investor
- Seattle, WA
- Posts 87
- Votes 44
Quote from @Adriana V Alvarado:
Hi everyone, I am just starting out in real estate investing. I would like to know what makes a good deal in the Bay Area, California (like in SF where I will be working) and how much money do I need to save to make the deal worthwhile? Should I start with a condo (about $400K for a studio/one bedroom) since that would be less than a single family home (800K+)? Even with house hacking with a lower down payment (which I am not sure would work if I get a studio size condo), I would still need to pay more out of pocket than what I would pay renting (I can get rent by splitting a studio with a friend for about $1200/month). Has anyone bought an investment property in the California Bay Area recently that could help strategize any ideas on how to move forward? Thank you!
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.
Post: can buyers kick out existing tenants when selling property in ohio?
- Investor
- Seattle, WA
- Posts 87
- Votes 44
Quote from @Brandon McCombs:
Hi
I can't find anything in Ohio code either way about the topic in the title. I have rental house with a separated detached apartment above a garage that I plan to sell. Tenants are in both units. Once they get wind of my wanting to sell they may or may not want to leave; they are both on month-to-month terms now. Do buyers have the legal authority to give the tenants 30 days notice to move out immediately upon the deal closing if they don't want to continue having them as tenants?
thanks
NO.
Post: Bottle of Wine for a Welcome Gift
- Investor
- Seattle, WA
- Posts 87
- Votes 44
Quote from @Josh Carpenter:
When I was traveling in Europe, Airbnb's often included a bottle of wine. I think it would be a nice touch for my STR, but I'm not sure about the legalities. Any doing this, or have any experience or knowledge to share?
Some people do not drink, and, alcohol that you provide can bring you liabilities. I would stick to a simple welcome gift.
Post: Delaware LLC / Cali purchase
- Investor
- Seattle, WA
- Posts 87
- Votes 44
Quote from @Chris Seveney:
@Natalie Johnstone
You can purchase property anywhere with a LLC from any state. What you will be required to do is register as a foreign entity in the state the property is in if it's not the home state.
I recommend speaking with an attorney and your cpa on if a LLC is even required and the state(s) to incorporate it in. Not all property needs to be owned in a LLC and does not have to be in a random state.
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.