All Forum Posts by: Ricardo R.

Hey Ofir,

Man, first off — respect for everything you’ve pushed through and for jumping right back into building again. Based on what you said, here’s a straight take:

If your main goal is to house hack while keeping costs low and growing, I’d lean toward staying in Central Florida for round one. You already know the area, the permitting process, and the general demand cycles — that’s a big edge most new investors don’t have. Areas like Ocala, Lakeland, or Deltona are still relatively affordable, and you can get solid rent-to-price ratios (1% range) with less regulatory headache than in bigger coastal markets.

If you’re open to moving, though, Greenville, SC, and Knoxville, TN are also worth serious looks. They've got solid job growth, friendly STR/MTR laws, and reasonable prices — you can still find properties in the $200K–$250K range that rent well.

On the Airbnb ban, since you’re going direct-booking anyway, that’s actually an opportunity. You already know how to run it; you just need to plug into local travel nurse networks, Furnished Finder, and corporate housing directories. And the pet-friendly angle tied to your K9 training? That’s gold. Lean hard into that branding — it gives you an instant niche.

Your income and experience suggest you’re ready — just stay local or in a market you can drive to easily at first. You’ll scale faster when you’re not learning everything new at once; Ofir, I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

@Lawrence Cargnoni, To your questions:

Option 2 (Missouri LLC owned by a Wyoming holding company):
You might avoid registering the Missouri LLC in California if you’re not materially managing it from within the state. But since you’re a California resident — and, as you mentioned before, already had to register your Ohio LLC as a foreign entity in CA because it was managed from there — the same logic would likely apply. California looks at where management and control occur, not just where the property sits. So if you’re signing contracts, handling banking, or directing operations from your home office in San Jose, the Franchise Tax Board will probably say it’s “doing business” in CA again.

Option 3 (Wyoming LLC only):
Same issue. Even though Wyoming is great for anonymity and simplicity, if you're actively managing that LLC from California, you're technically doing business there and would have to register it as a foreign LLC.

So in short — yes, you’d likely have to register either of those entities in California, just like you did with your Ohio one, unless you set up true out-of-state management (like a Missouri-based property manager or partner handling all the activity).

Hey Jason,

That's a really smart question — figuring out how each upgrade moves the needle on value is the heart of nailing your ARV. There's no universal chart that says "X project = Y increase," because the impact depends on your market and comp set, but here are some realistic, data-backed estimates and rules of thumb investors use:

1. Windows – Great for both appraisals and rentability. Expect about a 60–75% return on cost in most markets. If you spend $10K on windows, that typically adds $6K–$7.5K in appraised value. It won't blow up your ARV, but it helps your energy efficiency, appraisal photos, and tenant quality.

2. Kitchens – Still the king of ROI. A midrange kitchen remodel of $20K–$25K usually adds $15K–$20K in value (about 75–80% ROI). Even smaller updates — new cabinets, counters, and lighting — can add $10–15 per sq ft in perceived value when appraisers compare it to dated comps.

3. Bathrooms – Slightly lower ROI but still strong. Budget $8K–$12K per full bath and expect around 60–70% value lift. New tile and vanities go a long way.

4. Flooring & Paint – These are "curb appeal multipliers." You won't get a dollar-for-dollar value bump, but they help justify top-of-market comps. If you spend $5K repainting and $7K on flooring, you might see $10K–$15K added to your ARV simply because the house looks turnkey.

5. Mechanical Systems (roof, HVAC, plumbing) – These are more about protecting value than increasing it. They don’t add much perceived value but prevent appraisers or buyers from discounting the home. A new roof might cost $9K and only raise value by $5K, but it keeps buyers from knocking off $15K in negotiations.

6. Curb Appeal & Landscaping – Modest returns, around 50–60%, but a big deal for tenant attraction and resale.

So, in Pittsburgh, the best approach is to pull your ARV from the top three recently sold comps that match your size, layout, and finish level after rehab. Then work backward: what level of improvement do those comps show, and what’s missing from your property?

In other words, if your comps are selling for $250K and your current property is worth $180K, you've got about $70K of potential lift to play with. If your total renovation cost (windows, kitchen, bath, paint, etc.) comes in under $50K, you're in solid BRRRR territory. Jason, I hope this helps you a bit, I know it's a bit beyond the question about windows but if you're doing a project maybe my list will help you prioritze, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance.

Hey Alan,

Buying older homes can be a great way to find value, but yeah — they come with their own set of “gotchas” that newer investors don’t always see coming. You’re right to be thinking about lead, radon, and outdated systems.

Here’s how most experienced investors handle it:

1. Lead Paint (Pre-1978 homes):
You’re not required to test for lead before buying, but you should budget for lead-safe practices during any renovation. A lead inspection or XRF test during your inspection phase costs about $300–$500, and it’ll tell you exactly where the risk areas are. If you plan to disturb any painted surfaces (windows, trim, walls), make sure your contractor is EPA RRP-certified — it’s illegal for them to scrape or sand without it. If you’re holding as a rental, disclose that the home “may contain lead-based paint” (that’s the federal rule).

2. Radon Testing:
In most parts of the country, a $100–$150 radon test during inspection is a cheap peace of mind move. You’ll see higher radon levels more often in basements and crawl spaces, especially in places like the Midwest or Northeast. Mitigation systems run about $1,200–$1,800 and usually solve the problem entirely.

3. Knob-and-Tube Wiring:
This one can be sneaky. If the home still has active knob-and-tube (K&T), most insurers and lenders will flag it. Replacement costs can range from $8K–$20K depending on the house size. The workaround some investors use is to rewire just the accessible areas (attic, basement, open walls) and cap off the rest until a full remodel. But if it’s fully active, plan for a rewire or negotiate a price reduction upfront.

4. Other Hidden Issues:
– Galvanized plumbing: These pipes corrode from the inside and kill water pressure. Replacing them with PEX or copper can be another $3K–$10K.
– Foundation/moisture: Older homes sometimes don’t have proper drainage. Look for signs of efflorescence or sagging joists.
– Insulation and HVAC: Many pre-1978 homes have poor insulation and drafty windows — energy costs can be higher than you’d expect.

Bottom line: none of these things are deal breakers, but they are budget items. A good rule of thumb for pre-1978 homes is to set aside an extra 10–15% of your rehab budget for surprises.

If you like character homes and you’re buying right on price, the charm can easily outweigh the headaches — just make sure the math includes the reality of owning something with a few wrinkles; Alan, I hope this helps you a bit, tried to list most of the common issues with these older properties, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist.

Hey James,

Good question — Florida handles closings pretty differently from Connecticut. Down there, title companies essentially take on the role that closing attorneys handle in your state. The good news is, overall costs in Florida are usually lower than attorney-based closings up north.

For a property around $450,000, here’s a realistic breakdown based on typical Orlando title company fees:

• Title insurance (lender + owner policy): Usually $2,000–$2,200 total, depending on the exact premium rate and endorsements. Florida has a promulgated rate system, so most companies charge within a narrow range — about $5.75 per $1,000 for the first $100K and $5 per $1,000 after that.

• Title/closing fee (their version of the attorney fee): Around $500–$800.

• Recording, doc stamps, and miscellaneous fees: Roughly $300–$600.

• Wire and courier fees: Usually $50–$150 combined.

So altogether, you’re looking at roughly $2,800–$3,500 in title-related closing costs for a $450K property — sometimes a little less if the seller covers part of it (which happens occasionally in Florida).

If you want to get more exact, you can call a local title company in Orlando and ask for a “title quote” — they’ll give you an itemized estimate in a few minutes. But for offer calculations, assuming $3K for title and closing fees is pretty safe.

You’ll probably find it simpler and slightly cheaper than the attorney route you’re used to in Connecticut; James I really hope this helps you a bit - tried to organize it a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you. 

Hey Denise,

I went through your report, and you’re actually looking at this the right way—you’re just interpreting the numbers like an investor, when what you really have here is a hybrid situation: part home, part house hack.

Your report shows a purchase price of about $410,000, with $75,000 budgeted for renovations. That brings your total project cost to roughly $496,000. Your projected mortgage payment before refinancing is around $2,200/month, and about $1,887/month after the refinance. With rent from one or two rooms totaling about $2,275/month, the calculator shows a negative cash flow of around $885/month before refi and $568/month after.

Here’s the thing — those numbers look bad only if you treat this like a pure investment property. But you’re not. You’re buying a primary residence that also helps offset your housing costs. If you were renting a comparable home for, say, $3,000–$3,200 a month, you’re effectively dropping that down to under $600 out-of-pocket once your room rentals are factored in. That’s a major improvement to your monthly budget.

Also, don’t forget that the report’s “Return on Investment” section isn’t really meant for owner-occupants. You’re building equity through appreciation and paying down principal, not chasing immediate cash flow. Once you renovate and your divorce is finalized, your property could be worth closer to the $500,000–$550,000 range that the report projects. That’s tens of thousands in potential equity that won’t show up in your monthly cash flow line but is still real value you’re creating.

If I were you, I’d focus less on the red numbers in this first phase and more on affordability, flexibility, and long-term upside. You’re making a smart move: reducing your living expenses while positioning yourself to build wealth once the dust settles. When the reno’s done, we can rerun this as a true “house hack” scenario—those numbers will look a lot more like what you’re actually achieving financially; Denise I hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you.

Hey Larry,

Totally get where you're coming from — the whole "California resident investing out of state with an LLC" thing gets messy fast. You're not overthinking it; these little details really do matter once you start adding states into the mix.

Here’s how I’d break it down without all the legal fluff:

Option 1 – Use your current Ohio LLC (that’s registered in CA)
You can buy the Missouri property under that LLC, but you'll end up registering it as a foreign LLC in Missouri too. So you’d be paying annual fees in both CA and MO. It’ll work fine, just means more paperwork and duplicate costs.

Option 2 – Create a Missouri LLC just for that property
This is what most investors in your shoes do. It keeps things clean, simple, and local — your Missouri property sits in a Missouri LLC, and your Ohio LLC can be used later when you actually buy something there. The downside is you'll still pay CA income tax on the profits (since you live there), but you'd only be paying one state's LLC fee instead of two.

Option 3 – The Wyoming holding company route
This one's the "fancy" structure a lot of people pitch for privacy and protection. You'd have a WY LLC own the Missouri LLC. That can work, but if you're still managing everything from California, the state might decide it's "doing business" there anyway and charge you the $800 franchise fee — so it doesn't always dodge the bullet. Plus, it's more complicated when your lender looks at ownership for the DSCR loan.

If it were me, I'd just form a Missouri LLC for this property and keep it simple. Once you've got a few more properties under your belt, then you can think about a Wyoming parent company or more complex structure. Lenders like clean, straightforward ownership when you're doing DSCR loans anyway.

So yeah — no wrong answer here, but for a first Missouri deal, I’d go local, stay simple, and keep your sanity. California will still want their tax cut no matter what you do; Larry I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you. 

Hey Jay,

That’s one of the most stressful spots a landlord can land in — radio silence from a tenant who’s weeks behind. You’ve got three decent options on the table, but which way to go depends on how “gone” you think they are.

Here’s how I’d look at it:

1. Check if they’ve actually abandoned the place.
If utilities are off, mail’s piling up, or neighbors haven’t seen them, document all of it. Sometimes tenants vanish without saying a word. In that case, you might need to start the abandonment process under your state’s rules instead of a full-blown eviction.

2. Don’t wait too long to file.
Once you hit that 2–3 week mark with no response (which is actually too long), it’s usually time to post a Pay or Quit notice (whatever your local law requires). You’re not being harsh — you’re just preserving your rights and the timeline. Courts move slow, and waiting “just in case” often burns another month of lost rent.

3. Cash-for-keys is only worth it if they’re still there and cooperative.
If they’ve ghosted you, it’s pointless. But if they resurface, offering a small cash incentive ($200–$500) to leave by a specific date can save you weeks of eviction delays. Just make sure you get it in writing with a move-out agreement and key return.

4. Keep documenting everything.
Save every text, call log, email, and voicemail. If it ends up in court, you’ll want to show you made multiple attempts to contact them.

If I were you, I’d post notice now — it starts the clock and you can always stop the process if they come back and pay. Silence this long usually means they’re not paying anytime soon.

And don’t beat yourself up — every landlord goes through this sooner or later. It’s just part of the business. The key is staying professional, documenting everything, and moving forward fast so it doesn’t drag out longer than it has to; Jay I really hope this helps you a bit, I sent you DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you. 

Hey Michael,

Yeah, that’s one of those little landlord curveballs that nobody tells you about until it happens. You did the important part — you mailed it certified within the required time. That’s what legally covers you in Florida.

At this point, don’t overthink it — just keep things clean and documented:

• Hang onto that original envelope — keep it sealed and take a photo showing the certified label and postmark. That’s your proof you followed the law, even if they didn’t pick it up.
• Send a new copy to the parents’ address they gave you, and yep, do it certified again. Print a fresh copy of the same letter and staple a photo of the first envelope to it for your own records.
• Shoot them a quick message like:

“Hey, just a heads up — I re-sent your deposit letter to the new address via certified mail. Keep an eye out for it.”

That way, you’ve done everything possible and stayed transparent.

If they ever tried to fight it, the court would see you did things right — sent it on time, used certified mail, and even re-sent it when they gave you a new address. You’re totally fine.

So yeah, keep the original sealed and send a fresh one certified — simple, clean, and fully covers you; Michael I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you.

Hey Lucas,

Congrats on the new baby (and the new 4-unit)! That’s a lot of life change happening at once — exciting, but yeah, timing matters here.

You’re right that being near a hospital makes your garden unit a prime candidate for mid-term rentals (MTR) — travel nurses, patient families, medical staff, even corporate relocations. The demand is usually steady year-round in Chicago for that group.

That said, here’s how I’d weigh it:

If you go MTR:

• You’ll need to furnish it properly — not fancy, but turnkey: queen bed in each room, blackout curtains, comfy couch, smart TV, solid Wi-Fi, a stocked kitchen (pots/pans, utensils, coffee maker, toaster), and a simple desk setup.

• Expect about $4K–$6K upfront to get it guest-ready if you’re starting from scratch.

• Cleaning and turnover management can be automated (Turno app or a local cleaner), but there’s still some coordination involved.

• Since you’re near a hospital, list on both Furnished Finder and Airbnb (30+ night stays) — that combo usually keeps you booked.

If you go LTR instead:

• You’ll save yourself the time and mental load of setting up a new system while adjusting to newborn life.

• Even if the rent’s lower, you’ll get steady income and less stress, which might be worth it right now.

Winter leasing in Chicago:

• Yeah, it’s slower — especially December through February — but MTRs tied to hospitals stay active because medical contracts don’t follow the same seasonality.

If this were me? With a baby due next month, I’d probably lock in a good long-term tenant for now (even if it’s slightly below market), then revisit the MTR setup in spring when life settles down. That way you’re not furnishing a unit and fielding messages while running on two hours of sleep.

Once you're ready, MTR could be a great next phase — your property's location is tailor-made for it. For now, the best "ROI" might just be a little less chaos at home; Lucas I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you.