All Forum Posts by: Craig Garrow

Quick question! I'm working on getting my LLC set up for my property management business. What I currently do, is keep a business savings account that is my "investment" Account - meaning it is strictly off limits except for real estate purchases. My thought is, once I get the company set up, to take all but $1,000 for incidentals out and put that into a savings account at a new bank that is harder for me to access on a whim. Just wanted to see what everyone else is doing! Thanks in advance!

I've been primarily working with investors. The trick is that I also do Property Management, so, it makes for a turn key investment purchase for the buyer. It helps!

I agree. It's got me in quite a conundrum! I keep hearing stories of people getting LLC's set up for anywhere from $100-$500. Definitely makes me drag my feet on wanting to spend $1,200!

Just wanted to see what everybody's thoughts were. I got a quote of $1,200.00 from my attorney to set up an LLC for me. I've got a buddy who's wife is a CPA, and he tells me he can get her to set me up an LLC for $600.00. This would be ideal, as I need one for my Property Management business, and one for my real estate holdings. Anyone have any experience with having a CPA set their LLC up? I don't mind spending the extra money, but saving $1,200 would be pretty substantial. Thanks!

Phil - that's just what I'm budgeting. I'm thinking new carpet throughout (it's fairly large) and tile in the kitchen and bathroom. Every room will need a thorough clean and repaint to get the smell out, then a good cleaning on the way out. I figure at least two guys, for a week straight.

Just wanted to see what everybody's thoughts were. I'm working on a deal right now on a second rental property that if I complete it, I'm looking at around $1,100 per month in cash flow after expenses. My thought is to obviously keep saving a good portion to reinvest in more deals, but also to take a portion and fund a ROTH IRA account, and life insurance policies (that cover each mortgage) and produce a cash yield as well. Is anyone else doing anything similar?

Thanks for the replies! I should have mentioned that this building was kept in great condition, generally speaking, by the prior owner. The roof is 3-5 years old, and the three furnaces are 3 years old. The basement has been spray foam insulated, and the building is in an "A" location. The one real issue is that there is a gentleman in the building who should be on assisted living and his apartment is a mess. I plan on a 5k rehab (mainly paint, floor covering, and a thorough cleaning) but I can raise the rent from $400 to $600-$650 easily. After that's done, I know I can easily get $500 or more out of the apartment that is currently rented for $375. It will take about 90 days after closing to get there, but I think once that's done, it should cash flow about $500 per month after adding in a 10% maintenance reserve as well.

Im looking at a triplex as my next investment and am just looking for some second opinions: 3 units - 1 - 2 BR, and 2 - 1 Bedrooms. Current rents are $700, $400, and $375. (The two lowball amounts should be $600 & $500 minimally.) Taxes are $3,200 per year. Insurance will be about $750. Trash Removal will be $840. Snow Removal will be $600. Water & Sewer will be $700. Propane (hot water for all apartments and heat for 2 BR) will be $1,500. Vacancy Reserve of $1,500. List price is $104,900. I'm thinking of offering $95,000. 20% down with 6% seller's concessions, my P&I payment should be about $390.

Thanks for the replies, everyone! Luckily, I made a couple of sales over the weekend, and it looks like I can swing a conventional down payment on this second property now. I just put an offer in today, so, hopefully all goes well!

I recently bought a duplex with a 5% down conventional. Check with the local banks, they seem to be much more flexible.