All Forum Posts by: Eric Mcginn

If you don’t have lots of personal assets to protect you really don’t need to worry and it. 
But many commercial lenders will require you to close with an LLC so having one will give you flexibility.

You don't need a lawyer to open a LLC but it's a good way to maintain a relationship for when you need other stuff and should only cost a couple hundred bucks a year. For them to maintain your LLC filing.

If they are a great tenant than why don’t you just start raising it like 7% annually until you market rate? 

Good tenants are worth a premium IMO. 

Ive always done TurboTax myself. But I'm never 100% sure I'm doing it right. Now that I have 7 LTR units and a STR I want to make sure I'm doing it right. I found one guy that seemed hopeful but he said he can't do it because he didn't do excel which is how I break down my expenses.
He said a full financial firm could handle it better. 
sounds expensive. 
how much should I expect to pay here in the SF valley in Los Angeles considering the 9 rentals I self manage and my wife filed jointly. 

Or should I TurboTax again and spend more time off the phone with their people? 
help?

Wow excellent information, thank you! 
I will ask my credit union about HELOC offerings for me.
Another thing the potential new banker mentioned (he’s a friend of a friend) is that the current bank might be able to do an “allonge” to extend the current loan with another 7 year rate lock. 

Another kind semi-issue I'm having is that my most recent investment property purchase was put all on a single loan that's currently 87% LTV so the loan is also secured by my first property. This is effectively tying up the ENTIRE amount, not just the 12% difference between what's allowed. They can make changes to put a "release" on it but I need to decide what to do.
here’s a quick breakdown of what’s going on

#1 bought 6 years ago, value ~$300k owe $70k on first mortgage. Also has a second mortgage that was the down payment for #2

#2 bought 2 years ago value $275k and I owe $145k on first mortgage 

#3 bought last year ago value $160k and I owe $135k on its first mortgage which is also currently secured by property #1 

I didn’t fully realize this was the case and found out when I went looking around for a potential #4 

My goals are to reduce monthly, and to make equity available to put towards a down payment on one more (larger) one. 

I own them all through the same single member LLC

Vacasa is sucking so far. Not impressed. But I’m hoping with a little minor time it will sort out. 

LTR market is STRONG up there. Like way more demand than supply so it’s good to know that with a little time to find a good tenant, yes it could cash flow VERY nicely. But we enjoy using it too much to do that at this point.  

I’m not sure where my question fits in or precisely how to explain it but I’m trying to decide if I want to refinance with a different local credit union for a slightly better rate / term. 

And if so, which of my 3 investment properties do I change banks with? 
Is there any reason to have all your mortgages and loans with the same bank or is there a reason to split it up? 
I’m sure everything will be dependent on situational specifics, and of course I’d first try to turn in my loans with the worse terms.
loans are 20-25 year commercial currently at 4-5% with 7year fix that’s almost up. New rate would be around 3.7% I’d have a lot of math to do to figure out pay off especially considering it’s still only locked for 7 years. But I’m wondering if there’s anything to be said about banking all at the same place vs different lenders 

As for this investment being weak / strong....

All my expenses will be about $1,100 monthly (mortgage, insurance, taxes) based on property and house details I expect minimal maintenance after I install a heat pump to avoid fiddling with the kerosene monitors, and I have got close to 100 inquiries for the listing at $1,500. 
Southern Maine is a super hot market right now so I expect the price will go up over the next couple years. 
so maybe not the strongest deal but pretty solid I think. 

Why is exactly what I’m asking. Thanks for your detailed response. I’m literally just not familiar with the concept beyond the basics and wanted to ask y’all if there was a way to use it to my benefit somehow. 

But it seems not! I haven’t even replied to this inquiry so it’s not something I’m really interested in or even responded too, especially after your take on it. I’ll continue with my other most qualified tenants instead! 
Thanks! 

just not sure if there’s some sort of benefit I hadn’t considered 

Right, same here. My goal is actually to buy it using as much equity in my complicated property that only the local credit union will lend on so that I have my equity in this simply SFH instead which will make it more liquid / accessible. Plus cash flow a bit