All Forum Posts by: James Tatlow

@Bradley Kirschbaum @Basit Siddiqi

Basit, 

I converted to LLC for the very reasons you list above.

James

Hi BP-

I recently talked with an attorney about setting up an LLC to hold a couple of rental properties. Previous rentals had been held in my own name, but I wanted to transfer current properties into an LLC. I had him file the paperwork with the state of CA. There must have been a miscommunication because he filed articles of incorporation for a general stock corporation (form ARTS-GS).

When I followed up with him, he said we could convert to an LLC if I wanted to but there was no real legal of tax difference between the two entities given what I was using them for.

I just wanted to check the forums before making a decision. Should I convert to an LLC or is the general stock corporation going to serve the same purpose? My main goal here is to create a barrier between the rental properties and my personal assets.

Thanks in advance for your insight!

Received an update from my lender.  Flood insurance will be required on both properties.  

@Chris T. why did you walk away from the property that you had under contract?  Was it because of the requirement for flood insurance or because the insurance was too expensive?

Thanks.

Thanks @Chris T..

Strategy is buy and hold.  

Hi BP -

I have encountered an odd situation that I want to run past the community.  

I have 2 duplexes under contract.  They are right next door to each other but are on separate APNs so the sale is being treated as two separate transactions.  I heard that another property in the neighborhood fell out of escrow because the lender was requiring flood insurance so I reached out to my insurance provider to get an estimate. The quote came back very expensive, expensive enough to be a deal killer.

I called my lender to find out if the loans would require flood insurance.  Their response was that one property would and the other would not!  I don't understand how this could be possible.  They are currently investigating why this is the case.

I guess i don't really have a question, just wanted to see if anyone had any insight.

Thanks!

Great information @Alex Craig and @Curt Davis.  This is exactly the type of information I was looking for.

Thank you.

James

Hello BP.

I am an out of state investor that has been researching the Memphis market for buy and hold opportunities.  I have read many times on the forum about the importance of knowing the individual neighborhoods that you are looking to invest in. 

The areas that I have decided to focus on are Hickory Hill and Germantown (zips 38115 and 38141). These seem to be solid B class neighborhoods.  I am looking mainly for small multi-family units.

I am reaching out to experienced investors in this area to help fill in the gaps.  Specifically, questions I have include: 

are these desirable areas to live? 

do these areas experience higher than average vacancy rates?

Do units require extensive rehab after each turnover?

Any information you can provide would be greatly appreciated!

Hi @Cecil Mason.  I also am new to BP and from San Diego.  I have just started researching the Memphis market and would love to pick your brain.  I have tons of questions!