All Forum Posts by: Dan Marl

@Dan Marl

No problem.  Basically, there are no great answers to those questions...  Just stay with homeowners/landlord insurance, umbrella ins. policy, and keeping the property in good repair.

@Dan Marl

There is that...  Take a look at this thread:  https://www.biggerpockets.com/...

So, in the interim time between deeding Title to the LLC and your refi (or potentially after you deeded Title), what just happened to your corporate veil? Who is making the mortgage payments? You or the LLC? Who is taking the deductions (matters less when a single member LLC, but the situation still stands)? Just deeding the Title over without any additional paperwork just seems "bad" to me. Maybe in some States the jurisprudence says its no big deal.

Does that make sense?  I'd be happy to chat if you'd like.

@Dan Marl

Ideally, when you buy it. At least you purchased with cash. When you refi, you have the LLC give the mortgage. LLC's, like any other legal entity, are not eligible for conforming residential loans. So, you'll have to get some sort of commercial financing.

Just realize that lenders don't have any fiduciary duty to you, and they are in the sales business. They don't know, generally, or are looking out for your LLC's corporate veil. Having you the loan in your name and the Title in the LLC can screw that up --- co-mingling and alter-ego issues and all.

Yes, the commercial loans will be more expensive and generally worse terms. But, that is the cost of getting the limited liability protection of the LLC.

Hope this helps.  I'd be happy to chat.  Good luck.

@Rob Lee

Hello Rob, don't mean to hijack the thread but

I'm in tx looking at my first single family home for my first investment

Trying to stay under 250k preferably around 200 but even then I've been looking and searching on MLS, zillow, realtor, running the numbers and hardly anything cashflows, I'm taking cap-Ex,vacancies,maintenance,management,taxes mortgage insurance since I'll be using fha into account and I surely endup with either small cashflow or negative cashflow 1 out of 100 properties brings me at most 100 in cashflow, there's hardly any homes!

I have 10 months to get into my first property that's when I'll have enough saved up for my down payment.. and my lease ends then

but I see the market and how it is and I think I rather wait not really sure what's going to happen in the next 10 months though, any advice ?

@Dan Marl

I just wanted to say congratulations

I am about to purchase my first home and this is exciting meeting others who are also taking on the journey this year, we should network and I'll def be reaching out to you and following your growth! So I can learn from you as well!

Hey Dan!

Congrats on the recent acquisition! A lot of these questions are the preference of the investor/landlord, but here are my two cents. As time goes on, you'll find what works best for you. Here is what I wished I knew though when purchasing my first rental...

1. It's a brand new home. So should the rent be higher than comparable but older homes?

-Housing is all supply and demand. I would start by finding a comparable rent in your area. Rentometer is a great baseline. Nicer homes definitely rent faster and generate more demand. Since there is higher competition, you typically can charge a bit more. It just comes down to who is willing to pay it. I would start high and lower if you don't generate much interest. Definitely easier to price high and lower the rate as opposed to pricing low and raising the rate. 

2. Does the landlord usually provide the washer/dryer and fridge? Pros and cons?

-All of the properties I have acquired came with these, so I supplied them to my tenants. I know individuals though who have had to supply their own. From a leasing standpoint, it will be much easier to find tenants if you supply them. Personally, if I were renting, I would specifically look for rentals that had these included. I wouldn't put anything super nice in the unit. Used or new but either refurbished or slightly damaged is a better way to go. 

3. Should the tenant get renter's insurance?

-Yes. This will cost them around $10/mo. It's cheap and just adds an extra level of protection.

4. Who usually pays for lawn care?

-This one is up to you, but as an investor, your goal is to maximize your returns. One downside to having your tenant maintain the lawn is relying on them to keep up with it. I would just make your expectations very clear in your lease. Also, make sure you find quality tenants who will maintain and keep up with the property. But to answer your question, tenants usually pay for a single-family.

5. Who usually pays for trash service?

-Again, as an investor, you want to maximize returns. This means making the tenants pay utilities. It is a service they are using, so they should be responsible for the expenses that come with it.

6. Should I install a WIFI thermostat and a Ring Doorbell to entice tenants? What are the pros and cons?

-This is definitely nice to have, but not essential. If you can add it for a low cost, then it can definitely be an additional selling point. I wouldn't go out of your way to add something that many prospective tenants may not even care about. 

Again, these are things you will figure out with time, but that is just my initial take on it. Hope that helps!

Hi All,  I will be a new landlord in the great state of Texas soon, specifically in Cibolo/Schertz area.  

Would you know what the rental demands would be in this area?   And what do the rental rates go for an A-class 3bdrm 2 bath, new build home?

I'm looking to invest more in homes along the I-35 corridor and would greatly appreciate your view on the cities that are growing the most?  I'm looking for steady appreciation rather than cash flow.  

appreciate any feedback or direct me to a relevant link. Apologies if these have been asked and answered already. 

Thank you!

Ceci

@Dan Marl sounds like a silly question but I just want to make sure you have checked this - does your HOA allow rentals immediately upon purchase ?

@Dan Marl Google "Dallas Rental Owners associations" a bunch of options will come up ....