All Forum Posts by: Dan Shelhamer

I bought my first property (which is where I currently live, and will eventually be turned into a rental) at 24 years old, and financed through an FHA loan with 3.5% down. I am now 27 and just purchased my 2nd rental property (3rd total) through conventional financing with 20% down.

So I just got my 1st rental property in April of 2016, and am in the process of closing on my 2nd property right now.  I have found some great deals, and everything is going very smooth, thanks to this site and all of the knowledge I have gained.  My parents have seen the success I have had, and know my long term goals are to grow this into a large portfolio/business.  They now want to go in on deals with me as a "silent partner", and not have to deal with any of the day-to-day activities such as dealing with tenants, repairs, looking for properties.  I am just looking for ideas on how I could structure these deals from people who have done this with family.  Do I have them completely fund the deal and split the cash flow 50/50?  Do I split the downpayment with them and work out of a percentage of return they would get?  Just looking for ideas & advice.  Thanks!

So I just closed on my 1st SFR last week, and am hoping to have a tenant in by June 1st. A couple questions I have.

I was going to set up my LLC within a couple months as I plan to grow this into a full time business in the next couple years. I have heard some people on here say that if you deed a property into an LLC it can cause the due-on-sale clause to come into effect. Is this true? I was thinking of just doing a $1 million umbrella over all of my assets instead.

Also, how does the cashflow get taxed as I have heard if you do it correctly you should pay almost no tax on your cashflow?

Thanks!

I am currently marketing my rental property for a tenant, and I received an email from a prospect asking me if I accept Section 8.  I don't know everything about this type of program, and how it works.  Also, am I considered discriminating if I don't offer to Section 8?  From my understanding, Section 8 has come a long way and they have to do annual inspections and such which tend to keep the property in better condition if they want to stay on government assistance.  Please let me know your thoughts and experience on this.  Thanks!

@Rickey Medley thank you!

I have a question for all of the landlord's out there. I just bought my 1st rental property. I plan on eventually putting my properties under an LLC. How does everyone handle their income? By that I mean, do you set aside your CapEx & Repair money in a business savings account, and then place your cashflow into your business checking account? Just wondering how I should structure the financials for this as I plan to grow it into a full time business within a couple years. Thanks!

Just signed the contract on my 1st Investment property.  Their is a current tenant in the property now who is paying about $250 below what I believe I can get.  I was told by the seller's agent that the current tenant's lease goes through May 15th, 2016.  How soon can I start marketing the property, and what kind of notice do I need to provide the current tenant?  Thanks.

@Roy N.  Thanks for the info!  My realtor said he is going to contact the seller and get a copy of the lease.

@Larry Watson  Thanks for the info! I will look into that.

@Tony Velez Thanks!