All Forum Posts by: Michael R.

I guess it depends on the girls!  But I've worked in retail and when I used to clean the bathrooms at the end of my shift -- the girls bathroom was always dirtier than the boys.  

To your question about income -- given the constraints that can arise in a group tenant situation - I would think that each individual tenant would need to meet the 3X rent rule -- that way, if there were say - 3 tenants -- if two had to move to another city -- that in the worst case scenario the last person standing would be able to afford the place on their own.  

I'd be interested to hear what others have to say on this.

I am a fan of storage in rentals because a large portion of the population likes stuff.  Storage in a basement is inexpensive and low maintenance - and adds value in my opinion.

 One thing to consider is, what could you legally do with the space?  Does the basement have legal egress points? a separate entrance? If so - you may be able to make another room out of it if that were appealing. If it doesn't have those things - would it make financial sense to modify that space?

Other than that - if you finished it, what would it be used for?   What is your competition marketing their finished basements as?  

I hope that helps.

Forgive the lack of knowledge in this question but I have not been exposed to rentals without dishwashers.  As the property owner, when you rent a unit without a dishwasher and the tenant wants one how does that work?

Also - If you don't put one in the unit - do you mean to say that you put cabinets in it's place or allow the tenant to have one installed?

Thank you.

@Andrew Bertram I literally meant move into the house - certainly did not mean to communicate anything unethical and I apologize if it came out that way. If I use VA financing on my next property I may have to move into it for a year. It doesn't sound like that is really an option for you.

With that said - do you have any details on the time period they are requiring?

So you have a few options here -- finance in your name, your current LLC or a new LLC.

What are the pros and cons of each of your options?

This is sounds like a 1 year plan.  What is your 3 and 5 year outlook and how would setting up your current business structure support that?  If it is going to cost you 1500 dollars today for an operating agreement and additional CPA Costs -- why not defer these costs until you scale to a point where it is needed?  

Another way to consider this is, what is the one thing you can do today that will support the bigger picture goals? (The One Thing) - not what are the 5 things that you will need when you scale, but what can you do simply and really well to be an AMAZING 6 unit property owner?  Does that make sense?

I own one property in my name individually and am involved in two other properties. None of the priperties I am involved in are under an LLC and that was a choice. Three units total. But you have to keep in mind I work running my own company duiring the day and am in no hurry to scale. My goas for 2015 are 6 more units and none of these will be put into an LLC unless there is compelling reason. From.my experience financing through banks is more expensive and it adds complexity.

So my business objectives in REI are positioned just where I want them. I rely on my income to fund my purchses and find financial advantages in the properties as well as my business.

Consider taking some time to think heavily about your business objectives. Determine what your ideal situation is and determine why. 

I hope that helps.

Fair enough, and I don't want to hold you back :-) 

In a case where the LLC is a single member LLC vs the individual, I don't think there is a difference. Even with a two member LLC where the second member is your spouse I think the cost, complexity and added book keeping of multiple tax returns outweighs any benefits financial or from protection.

Keep the organizational structure flat and scale when you need to. In business "build it and they will come" causes excessive expenses early on. I have spent a lot of money trying to create business activity and justified it with write offs. Don't make my mistakes. 

Note this is not legal or financial advice and is given as is. I hope that helps.

Almost forgot -- turn your key word notifications on.

You can also find BP members around you through this link: http://www.biggerpockets.com/meet

Welcome Rick. The BP Podcasts are your next step. You will get an understanding for each type of REI and hear about a slew of RE and Business Books.

I agree with @Lisa Kohl - any chance you can live in it for that amount of time then rent it out?