All Forum Posts by: Derek Daun

@Ali Samee

I actually don't use LLCs on my properties, so I can't help you there.

"but I don't believe you need an LLC in the same state as your property."

My CPA advises against this in California. If you do all your business in California, but the state sees you're registered in a different state, they'll can go after you for tax evasion.  (California charges a high minimum tax on LLCs, which is the reason people would like to go to another state in the first place)

Well, it likely it will likely be a moot decision in this one. We pulled up the crappy laminate and found hardwood. So, assuming the rest of house looks the same, and our floor guys says it is refinishable, we'll be going with wood throughout the house and tile in the kitchen.

Do you prefer LVP or tile in a rental?

I'm big fan of LVP, but in the past I've still done tile in the kitchen. I've only done single family homes though, where the eventual exit strategy will likely be to sell the homes to an owner occupier when the neighborhood has fully gentrified. I think tile looks better.

What are people doing in the kitchen these days for rental grade? We have our first duplex, and my wife was thinking LVP everywhere This is also what our floor guys says most landlords are doing.

@Avtandil G. What is your strategy to get out of the ARM loan when it comes due? Hope the property has appreciated and sell?

What kind of financing did you use to get that 2.625% ?

@Charlie MacPherson I'm mainly referring to high cost of living areas like where I live and entry level is 450k in a premium neighborhood, and it's a sellers market. In most of the sales I see, the agent is not earning that 13k. It's a lot of money to pay someone to mis-price a house and stage it poorly.

I do understand what you're saying about 'you get what you pay for', but I think people are often getting that level of service anyway. 

Also, I didn't say I know more than MY realtor, just more than a lot of the realtors I meet.

@Charlie MacPherson Yeah, that makes sense, but to counter that, I'd say it sometimes takes more effort on the agents part to sell a cheap house compared to an expensive one. Overall, the entire percentage based model doesn't make sense, and is crudely adjusted incentive. Even more so when I know more about my neighborhoods than most realtors. 

I'm actually not selling right now, and am more interested investigating stock positions in Redfin. 

We point out in our leases that we do are not liable for their property and that they need to purchase their own rental insurance if they want coverage.

I'm curious how many sellers have been using redfin as a broker and what their thoughts are on the process. Redfin went public this past year and is pushing to grow it's business. I'm a fan of their tech, and like the idea of only paying 1% commission. They have potential to be fairly disruptive in the business.