All Forum Posts by: Jef A.

@Lawrence Stepovich

Thanks i will definitely reach out to a CPA to get more details about this.

Thank You!.....This is great information!

I will proceed with looking into the umbrella insurance and setting up the LLC and transferring the title of the home to the LLC.

i have a single family house that i own completely with no mortgage. I am moving into a new house with a mortgage and would like to rent my old house and use that money to pay toward my mortage on the new property. what is the best way to structure this? I was going to setup LLC and have my tenant pay the LLC rent but then what would i need to do to reduce my tax obligations and keep as much money as possible so that i can put that towards the mortgage of my new property?

any other advice for protecting myself in this situation? This will be my first rental property so the path forward is a bit unclear.

below is what i believe i need to do

Create LLC

Get TaxID/EIN for LLC

Open bank account for LLC

Get renters insurance on the property...maybe??

I found a property that needed repairs and was told by my lender that they wouldn't give me the loan because of the amount of repairs the property needed. Even though i could prove i had cash to pay for the repairs. So my question is there a general guideline that i should look for when trying to determine if a property would be approved by a conventional lender? The property i found needed paint, flooring and a complete kitchen rehab but was a great deal. 

I have no experience dealing with private lenders so i am reluctant to deal with them. I worry about things like them stealing my deal if i bring it to them or if i do a deal with them and do the repairs they try to keep the house for some reason. Excuse me lack of experience with private lenders.

@Michaela G. this house is slightly bigger than the other houses and also has one additional bedroom and bathroom. They listed for 265K but i will not be offering that....i plan on offering much less but hit a road block after talking to my conventional lender because of the repairs it does need. Based on the repairs i have seen so far i planned on an offer in the 225-235 range. 

Thank you all. This helps alot in pointing me in the right direction. I planned on house flipping and living in the house until i finish all the repairs. I will look into the terms of a hard money lender to see if this makes sense.

Thanks again.

I found a property i want to buy but it seems my conventional loan lender may have concerns about the repairs the house needs. The neighborhood is 300K+ and the property was built in 1987 and is listed for 265k but after talking with the seller i can negotiate down from here because it does need some repairs. I estimate some electrical work, kitchen rehab, painting, & flooring. My lender seems to be concerned about the repair work. Is there a different type of loan that i can get that is more comfortable with a property that does need repairs? I have great credit(815) and money for the down payment and repairs so i dont see what the issue is....i dont want this deal to slip by so i need some advice on how to structure the deal. 

Thanks for the reponse.....

My property is a foreclosure and i feel i can get it for a really good price. I am seeing estimates of ~5k to add central air to the house. The roof is good and its an all brick house with minor issues inside so i feel like its a good deal. I feel like this would be a good opportunity but wanted to get some feedback...

I have an opportinity to purchase an all brick 4 bed room 3 bath 1300sq ft home in a decent neighborhood for rentals. It does need minor rehab (flooring/kitchen/bath). The concern with this property is it was built in 1956 and has heating but not an airconditioner. Would a lack of air condition be a deal breaker for you? If i can buy it cheap  enough would it make sense to tackle the project of adding an air conditioner to it? Anything else i should be considering with a property this old?

Thanks all for the feed back. Definitely great advice and it gives me a formula for moving forward. I should close on my first rental in a few weeks and will use the advice here to find a contractor and get things done quickly.