All Forum Posts by: Jon Dorsey

Are you willing to buy a du/tri/quad plex and live in one of the units? If so a low down FHA loan would be the way to go as an owner-occupant.

As far as where to buy that’s on you to figure out. Where would you want live?

Beware of Bmore and DC as there’s additional hoops to jump through to get the pleasure of providing housing to people who need it. 

how are you estimating the value of each POH? Do you buy reports for each?

I've come across a 2 unit town home, upper/lower units that was marketed at $195k. ARV of comps in the area would be around $200-215k. I put in a bid based off of Cash-flow and ROI metrics and was accepted at $170k. Strong rental demand in the area, its safe, and would provide good cash flow for years to come. I expected to put in about $5-8k to update fixtures and some appliances.

After the Home Inspection I've got three big concerns going forward: 

1) Roof hasn't been touched since late 90s early 2000s. Its a rolled on rubber flat roof. There's leaking and effervescence in upper unit and will only get worse. Honestly surprised it's lasted this long. (~$5k)

2) It has front basement windows/sunroom. The frames are rotted, the lintels look like they've popped the stones/masonry and letting water through, and there's some sagging of the front porch (above these windows) causing a few cracks in the cement and more leaking into basement room below. Its a 1938 home, so probably some lead paint issues. (~$???)

3) It has oil heat boiler that needs to be replaced. This one is easier as there's natural gas lines and I can just convert it over but still pricey ($5-7k)

The seller doesn't have the funds to make the repairs so I'm trying to find a way to make this deal happen

Without getting bids, I'm estimating about $15-20k for rehabbing these items (FEEL FREE TO TELL ME I'M WAY OUT TO LUNCH)....this is on top of the $5-8k I budgeted to put into the interior.

I'm not a flipper and was looking at this as a buy and hold cash flowing property.

Looking where to go with this one:

A) Reduce offer by $15-20k to $155k

- Cons: I'm going to have to find a loan as I need my capital for other purchases in the hopper

B) Reduce to $160k and get $5k in closing help

- Cons: I'm still going to be out of pocket but b/n closing help and reduced downpayment would be able to get most of the work done and just put the rest on a credit card and use the cash flow to pay it down over the next 12 months.

C) Walk

D) Other options???

I appreciate any feedback on how you would proceed and why.

Anyone have a recommendation for a RE Attorney. I'm looking to purchase a commercial property, Mobile Home Park, in the Greenville area and need some local counsel. Thanks.

@Wayne Brooks LLC will have kids being members with wife and I as managers so allows us to pass distributions to them (less taxes at their bracket) and reduce the pass through to us.

**Looking for advice/guidance before going to my CPA/Attorney and I know that’s not you.**

I own two SFRs in my name. One is in MD and the other in FL where I'm a resident. I want to establish a LLC for asset protection and tax reasons.

The structure would be to have the LLC lease my properties from me and then sublease to tenants (to avoid due on sale clause and not pay transfer taxes). Once paid off I'll deed them over.

Can I just form the LLC in FL and run all rents, expenses, etc through it without having to register it as a foreign entity in MD or file a MD state income tax statement?

I appreciate any guidance or experience in doing this. I want to do things correctly and would prefer to legally avoid MD’s high taxes when I don’t live there. 

@Brock Mogensen @Edgar Perez Who pays the property taxes and insurance? Who's name are those in, your name or LLC's?

Does it matter which state you setup your LLC for in this situation?

I'm a FL resident and have two investment SFRs: one in FL and one in MD.

In the thread members have tenant paying LLC, LLC pays me, LLC pays mortgage, property taxes, insurance (though all in my name).

Can I setup a FL LLC for both or do I need a MD LLC too?

Thanks

Trying to help a friend that’s looking at a small park in Indiana and I know you are the ones to help. 

Are there rent increase restrictions in IN? I’m aware of such restrictions in DE and elsewhere but didn’t know about IN?

How would you perform the physical diligence piece on Condos?

I’m loooing at a portfolio of condos. They end up making one whole building. 

With a condo association, I don’t think I have to worry about the roof, siding, foundation...right?

Would I just get an inspection like a SFH on each of the units?