All Forum Posts by: Greta Clav

Under what circumstances does it make sense to pay cash for a rental property which will be held long term? There would be suficient cash left for repairs and maintenance for 1 year (in case, for very unlikely reason it did not rent.) If that is too broad a question, please ask me for specifics.

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Quote from @Cole Puterbaugh:

Under contract for a 3-unit mfr in Cleveland. My first purchase.

Purchase price is 177K.

Appraisal is 138K.

I cannot make up the difference with cash since I'm already at the top end of my purchasing ability.

Is ordering another appraisal worth it? Comps in the area seem to support the appraised value...

My experience has been that even if you have a second appraisal, most lenders will base their lending decision on the lower appraised value. And all the more so if, as you mentioned, the comps support the $138K appraised value. If obtaining the cash difference is not an option, you may ask the seller to lower the price to match the appraised value.

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Cleveland, Ohio

Quote from @Tom Markey:

The "definitive" answer to the question of "Do I need an LLC" is "It depends." What are your goals? What other assets do you have? Do you have business partners? How will the business structure affect your financing plans? Do you have a spouse or children? Etc.

I generally agree with @Doug Smith. If you'll have 10 additional properties, an LLC probably makes sense. Maybe even multiple LLCs. If you are inheriting the properties, you may need to work with the attorney for the estate of the person who passed away to discuss how the title will be transferred to you, especially if you want to hold the properties in an LLC that hasn't been created yet.

If you'd like to discuss your situation in more detail, feel free to send me a direct message.

I had not considered if I should have an LCC established before titles are transferred to me. I will need to find out. An operating agreement - Good information to know. I plan to keep the properties as rentals. Some will need improvements but I do not expect I will need financing for the moment. Other than the rentals, I own my home. No dependents and no business partners at the moment. Although I am considering a partnership for a single specific project in a year or so (build a high-end duplex). This project will require financing. Perhaps this would be a reason for establishing multiple LLCs. I will need to know more about how this would work for me. Thank you, gentlemen.. @Doug Smith and @Tom Markey

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Austin, Texas

Hi there. Has anyone used the fact that a property is in a ETJ as basis to protest its assessed value? If so, could you share what your points were in arguing that a property's value is lower because it is in an ETJ.

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Austin, Texas

Hi everyone. With my past rental properties I never created a DBA nor an LLC and thankfully everything worked out fine. Fast forward to today, I currently have 3 properties and I will be inheriting 10 additional ones (4 SFR and 6 multi-family). I know my way around with the purchasing and financing options/process for properties held as an individual, but I am ignorant as to how it all works if commercial. Given my experience , or lack of, and the number of properties, what is your recommendation on me establishing or not a DBA or LLC?

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Austin, Texas

All Forum Posts by: Greta Clav

Greta Clav has started 3 posts and replied 15 times.

Post: Cash vs financing for rental

Post: 3-unit mfh severely underappraised

Post: DBA or LLC

Post: Protesting Taxes based on ETJ

Post: DBA or LLC