All Forum Posts by: Herman Homes
Herman Homes has started 2 posts and replied 2 times.
Post: Transfer Home with Person Mortgage to Multi-Member LLC
- Rochester, NY
- Posts 2
- Votes 0
Hello, I would like to purchase rental property with a business partner and ultimately house it in a multi-member 50/50 LLC. We realize we won't be able to finance the house through the LLC directly, but it seems pretty common to take out a conventional mortgage in one/both of our names, and then quitclaim/warranty the deed over to the LLC.
Assuming there are no issues with the DOS clause here, we would continue to pay the mortgage out of our personal funds, right? We're not entirely sure how this would affect our taxes; we'd ideally want to deduct the mortgage interest as a business expense within the LLC. Is that possible? And are we missing any complexities that would screw up this plan?
Post: New Multimember LLC Investing in Rental Property
- Rochester, NY
- Posts 2
- Votes 0
Hello,
Long time lurker, first time poster. I am quite interested in investing in small multifamily rental properties in Western NY. I have a lot of little questions about specific details, but the general plan is as follows:
- This will be a joint venture with a business partner, a 50/50 LLC registered in New York (but both of us live out of state)
- We want to finance the deal with as much leverage as possible, with as long a payment term as possible. We both have excellent credit (around 800), but the available financing is unclear to me.
- After the initial stuff is arranged, we want to buy a turnkey 2 family with 4-6 bedrooms that does not require any initial improvements and ideally already has tenants
- We would then hire a property manager to maintain the property.
That's the very high level summary. My first question is just a gut reaction: is such a deal doable with two newbies using an LLC with no assets?
The areas we are most confused about are the financing, and the logistics of doing this with the LLC while we live out of state (what addresses do we use, state tax, etc.).
We have a decent understanding of how one buys a house and some of the regulatory stuff that comes with being a landlord (certificate of occupancy, etc.), but is there anything we should be especially aware of, or wary of? The deals look great on paper, so we want to get our ducks in a row and make it happen.