All Forum Posts by: Helen Zhang

@Shivam Patel Here is my understanding. Please have a cpa correct me if I am wrong. 

1. Can you transfer a property to LLC with a mortgage? It depends on the loan terms. Most of the mortgages allows you to transfer properties to LLC if the LLC has the exact same owners as the property and the mortgage.

2. Do you pay higher property tax with LLC? It depends on how you do it. There are two ways of taxing in LLC, by corporate or pass-through. With pass-through, it is easily understandable. Whatever you make with LLC is added to your personal income, and you will just pay with your personal income tax. With corporate, you can leave your money in and reinvest without taxing. For example, if you flip houses, you only have to pay 15% of the tax on gain. Let's say you make 500k with your personal income, if you do pass through, you will now have to pay a much higher bracket 35%. Doing corporate taxing will allow you to pay less taxes in the short term. When you retire and no longer make 500k, you can then start taking money slowly from your business like 50k a year where you will be only 12% of the tax. (12% + 15% is still way less than paying 35%, not to mention the tax you are paying is progressive). But you get the point, do corporate if you flip to reduce tax, and do pass-through if you do rental so money is not trapped in business in case of a lawsuit.

@Dave Meyer could you please clarify 1/2/3 as 1 is the most important or 3 is the most important? you might want to clarify that somewhere to prevent getting inaccurate survey data.

@Nicholas L. thanks for responding. I figured this out by reaching out to the mortgage company. It is primary, and it is 1-year min stay. 

Not sure if this is possible but I do think there is a way where we can put money into LLC and get K-1 schedule and then use that money to make investment purchases on properties. (What I am seeking for is not just to get depreciation out of our investment, but the entire purchase or downpayment on the investment)

Is this even possible? I would like to know how do you guys do it? 

I purchased a primary resident last year and have decided to move to a diff location. I am interested to purchase another house and it will be my primary resident. Are there any restrictions in loans if I want it to take it as a primary resident mortgage?

@Rafaella Almeida could you please clarify 1/2/3 as 1 is the most important or 3 is the most important? you might want to clarify that somewhere to prevent getting inaccurate survey data. 

I would like to learn an edge case study of "what-ifs" that I've always been wondering about as I think this can be easily abused as I am about to purchase an auction house that is occupied. This might be an interesting case (not what I am encountering) but I would like to know all the legality around this abuse. 

Assume that the owner of the property is currently about to be foreclosed, he then wants to minimize his lost by renting the property out and take the tenant's deposit and possibly collect a few more months of rent before the property is being foreclosed. He then signs an unfair agreement of $5 dollars per month lease for 100 years with the tenant. 

As the property forecloses, and you purchased the property. The lease would survive and must be honored. Is this correct?  I wonder what would be the legality around this issue and what needs to be done here. 

This seems to be a pretty bad abuse. Of course I am exaggerating that the monthly rent is $5 which is obviously not a fair market price, but what if it is on the very very low end of the market price and for a very long term that is 5 years? who is there to judge whether this is legal? 

My tenants have lived in the same property for 8 years, and the carpet's condition is really bad and I would like to replace it. I have to admit that I don't ever install carpet for my rentals, but for this unit, I already have 1/2 of the flooring installed as laminate and I could not find matching laminate to install the rest. So I would like to know what kinda carpet that many of you like to install that last long and look clean. I would like to go with Homedepot as I am far far away from the rental units and I would like to get stuff done from distant. 

Does anyone know where is a good place to purchase light fixtures? Yes I know Amazon, Walmart,  HomeDepot and Ikea. I would like to have more options. 

@Mike Reynolds, for context, this is for city of Pflugerville, and it is still in Travis County.