All Forum Posts by: Dennis O'Loughlin

 Thank you very much Greg.  That was the most informative.  

My wife and her ex husband still each own half of their old house. He is wanting to sell his portion and we are wanting to buy it from him and turn it into a rental property. There is still a small mortgage owed on the house. We want our rental property LLC to own the house so how do we do that? Do we take additional loan out to pay off our portion of the mortgage? After the LLC purchases the other half do we have to do anything? Does the LLC just purchase the house for half of the amount and then my wife sells her half of the house to the LLC for $1 or something like that?

We figure someone out there has been through this so what do we need to do?  Thanks a lot.  

My wife and I are about to close on our 2nd rental property. They are both professionally managed and we need to get accounting software for our LLC. What would y'all recommend?

We found a great rental property, got approved for a loan, and then were going to use a heloc for the down payment.  The loan app for the heloc had issues due to a bank error (never using this one again) and we had to extend past the original closing date.  Unfortunately the heloc app was declined due to us being 3 points over what their debt to income ratio guideline was.  Needless to say we are disappointed and quite ticked off as is our lender because he feels that 3 points is not enough to deny an app.

Anyone run into this before?  Are there any last minute things that people have done or could do?  We have some money set aside but unfortunately it would not be a good time to use that amount of money for the down.  Thanks for the ideas.   

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $96,000
Cash invested: $30,000

Updated 4 bed, 1 1/2 bath house on a corner lot in a HIGHLY desired neighborhood with a great school district. This house is right on the edge of town with farmland behind and a block away so not much neighborhood noise. Flooring, paint, roof, windows, and kitchen recently updated. Closing in a couple of weeks.

What made you interested in investing in this type of deal?

Location, location, location

How did you find this deal and how did you negotiate it?

Online and with our real estate agent

How did you finance this deal?

Through a mortgage broker we met through BP.

How did you add value to the deal?

Will be putting in our own appliances so we will be able to depreciate them

What was the outcome?

Easy process

Lessons learned? Challenges?

Don't do this around a holiday to help with stress and time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tonya Feller Agent in Decatur, IL. Jimmy Webber with Financial Leader for mortgage.

 That would make sense if it wasn't 2 time zones away lol.  I see your point.  

Does that mean that you could potentially end up paying double taxes since it's 2 different states?  

My wife and I found an AMAZING LTR property that is in an excellent neighborhood, has a super view, and is close to a couple golf courses.  However, when running the numbers it looks like we would actually be negative each month by about $300 if we cannot get what we hope to for rent.

We do have 2 other rentals so we should not have any problems making up the difference each month but...what is the general thought on something like this?  With this one it would obviously be more of an appreciation type purchase rather than monthly income.  We will be taking out a standard loan for the mortgage but we are not sure we want to get upside down each month.

We are figuring that we could always refi later on once rates drop again and the property has a brand new roof this year with newer paint so we are not worried about cap ex right now.  

Are there any tax advantages on this type of situation where you are in the negative each month other than the standard depreciation and mortgage interest?  Thanks for the help.  

My wife and I are just about to finish the purchase of our second ltr.  However...they are both in a different state.  When it comes time to file taxes how do we do that?  Do we have to file both in the state where we are licensed and the state where the properties are?  Thanks for the info.  

I remember learning about different things to look out for on multi unit properties, specifically that once you got above a 4 unit property, something happened.  Since we are wanting to start getting into multi family units...what is the different thing that happens once you hit that magical 5 unit mark?  Is it taxes or something else?

Thanks for the help.