All Forum Posts by: Eric Upchurch

Jay Hinrichs can you PM me the TK-lite info? That's really the only piece I'm missing as a CA OOS investor. Thanks!

Sorry, should have clarified, commercial, 5+. Thanks for the input. So, very similar. Have you done this before?

Anyone experienced with using the BRRRR strategy for MFR? I'm interested to know the differences (pros/cons) with refinancing on a commercial loan vs. conventional for residential. Any typical seasoning requirements? Or do you just need to show a certain economic occupancy and revenue of the newly rehabbed property?

Thanks, BP!

About time! Great conversation starter and opportunity to network without saying anything! I'll be wearing mine to the gym and maybe a not so sweaty one around town.

Thanks again for all the input. Does anyone here think CA is a tenant-friendly state? Is anyone concerned about a tenant who just stops paying rent and how that would work in CA? What would happen? I've heard some bad things about CA in that regard. Also, I should add that I already have one property in GA that cash flows. Have had to evict one tenant (PM handled everything) a few years ago. Renting it for the last 7 years. Licensed PM in place that keeps me informed when anything abnormal takes place, good contractor network for repairs, etc. Other than that one event and small things here and there it's been quite simple.

I get that there is more appreciation to be taking advantage of in CA with investments, which is why I've been doing multiple "live-in-flips" in the Bay since 2012, but seems to me that there could be more advantage to buying multiple OOS investments (depreciation, interest, maybe some appreciation) rather than maybe being able to afford one CA investment at the TOP of the market cycle, where we are now - just because it's "local". I'm certain it would be 1) expensive to purchase without OPM, thus using up most of my capital, 2) very difficult to get 1% positive cash flow, and 3) pretty risky to buy now, at the top of the cycle.

If you have millions to spend, I get it. CA/Bay Area all the way, but if you have an initial investment of maybe $100-150K can you see how OOS sounds more appealing, perhaps?

@David Faulkner @J. Martin

Thanks for the info. Think I'm getting there. Great to know about 5+ multi-financing and that actually makes it much easier to think about. I'd like to 1031 several SFRs to a multi eventually (or just buy multi through the LLC as suggested). Think I will start with umbrella insurance, then buy a few more OOS (thanks for the acronym @Account Closed) in my own name, deed the title to a revocable land trust (trustee is not me, beneficiary is my CA LLC), then assign the beneficial interest into my LLC. Only thing I have to do now is get my name off my CA LLC by using a different registered agent. Waiting to see how much that costs (dang). So weird how you can set up an LLC but you're completely open to the public on the SOS website unless you pay for a registered agent separately (assuming big companies use in house counsel). Only other option there would be to dissolve the LLC, then set up a new one in, say, WY so the manager/members are completely anonymous. I'd still have to register that entity as a "foreign entity" so CA can still get its $800.

So, that sounds like a huge pain, though it's probably pretty straightforward and only a handful of documents, but man it makes me feel like just taking a gamble! Almost. I've been house-hacking in the Bay Area since 2012 and don't want to chance losing my personal $$.

Can anyone tell me what type of umbrella insurance lets you rest at ease? Company? Type? General cost? Maybe I can avoid the whole "structure" like David and others.

Properties in the Bay Area won't cash flow at even 1%. $1,000,000 PP won't rent for $10k monthly. Closer to $4,500-$5,000. CA isn't the place for me to execute this strategy. I'd eat up 200k just to have a house break even each month. Rather take $200k and buy 10 homes out of state that cash flow $400 net monthly. As far as managing the properties goes; I won't be fielding calls late at night. PMs will be handling it. Otherwise I would definitely not be "retiring". Q: what is your strategy? Thanks!

Hey BP,

I have a CA LLC (yay, $800/year!). I'm wondering if someone can give me an actual example of "what to do" or "how to do it" as I start buying investment properties out of state. I WON'T take it as legal advice, I'm just wanting specific examples of what folks are doing. WON'T HOLD ANYONE LIABLE.

I want to get/keep my properties in the LLC, but how do I buy them in/through the LLC in the first place? I have enough to pay cash for a property in say, GA, but is that the only way to buy through my LLC? To plant the cash in it, then buy the property outright? I'm assuming very few, if any, banks will LEND to a new LLC with no credit or assets.

Or can I finance personally (80/20) then transfer into my LLC? Avoid "due on sale" with land trusts or maybe discussing with the bank that this is my plan (look for one that is ok with it)?

Or should I pay cash personally, then transfer into my LLC (definitely possible since no banks are involved). Then I'd want to refi the LLC-owned property to get most of my money back. Anyone do this? Easy to refi a seasoned property in a LLC?

I also know that you can only get between 4-10 mortgages. So how do I ramp up to 50, or 100, which is where I plan to be?

Thank you for any SPECIFIC help.

House hack!! Either buy class B in class A 'hood, fix up, wait 2 years (cap gains), then sell, repeat OR buy a duplex, fix up your side while the other side pays the mortgage for the whole building (can work that way if you're savvy), then when the tenant moves out, switch sides. Once both are rehabbed, sell, repeat. I've hacked my own houses in CA since 2012 and it's been amazing. Tough to stomach stretching to the limits each move, but very profitable. Problems manifest as kids get older, but can do it if you are single or have an understanding spouse on the same page. Do this 3-5 times and you'll be off to a solid start.

Awesome. Start reading RE books and listen to BP podcast!!!!! Start with Kiyosaki reading and Brandon Turners The Book on Real Estate Investing.