All Forum Posts by: Da Shiek Woodard

I've seen some posts on the LLC topic (especially the Wyoming LLC trend) and of course ended up on the fence. My scenario is I have 800+ credit, great job history, and a rental with $300K in equity and cashflow of $900 after expenses. I am interested in the potential of LLCs because of the business credit I can build which could potentially accelerate my purchasing potential. The way I see it, I have the following choices:

Option 1 - Get a Wyoming LLC for anonymity, which holds the LLC the owns my rental

Option 2 - Get an LLC in my home state that owns the LLC in whatever state I buy a rental in

Option 3 - Get an LLC only in the state that I buy a rental

Option 4 - Don't get any LLCs because I don't have enough property to need it and get an umbrella policy

I am officially stuck in the mud trying to figure this out.

When calculating your freedom number do you include the mortgage, taxes, and insurance on your rental(s), or do you exclude that since those expenses should be covered by the rents?

When I find off-market properties, I find myself unable to make offers because most of them are cash-only. I have excellent credit and a solid job, what should I be doing to secure funding? If I was buying a house to live in or buying an investment property from a real estate agent, I would simply apply for a mortgage, but is there an alternative for these off-market offers that I'm not looking at?

I'm in the DC area if any out of state investors need someone to physically put eyes on a property. I'd like to build relationships with people in other markets to do the same, hopefully we can help each other vet properties to reduce the uncertainty of being out of state. If there is a forum or resource for this already please let me know.

Ugh this is me. I backed into my rental by taking a job in DC and kept my home in California. Now it has $300K in equity and cash flows $1,000 per month even after the property management fees. Yet I'm still too chicken to cash this house out and get an apartment building or something in a cheaper part of the country.

Couldn't I hedge my bet though by refinancing $200K or so out to make some Midwest moves?

Understanding these are likely D class neighborhood, what are some success/failures any of you have had with these types of properties in your portfolio?

 Andrew I'd love to know more about your journey through $30K properties, that's where I am trying to enter right now.

 The most important thing I've learned so far is to keep meeting people. My perspective changes the more I learn, but I do need to take action on something soon because it doesn't become real until you enter some kind of deal. I just want to lay solid bricks as fast as I can without losing my balance.

Amanda I am very interested in this thread because I too live in the DMV. I've been looking at out of state properties because everything here is so expensive, I'd love to know what strategy is the most interesting to you. I'm here to learn as well.

Great post Mike thank you for this. Let me give real numbers for people who may be in my situation and get your advice. I have about $15k in cash after buying a primary house a few months back which took plenty of my cash. I have 800+ credit, great work history and a rental in California that cash flows well.  With such little cash reserves, what would your next step be if you were in my shoes? I don’t have a strong network yet, but I’m handy with small renovations.