All Forum Posts by: Jim Kittridge

@Nicolai Grebencio

Lots of good advice here. Scott Myers is a wealth of knowledge.

I would start by listening to SS podcasts and networking with other owners. Another great way to learn is partnering or being a LP in a few deals.

Basic insurance is typically around 0.5%-1.0% of the property's value. 

I have no insight into your specific market or the property but if the quadplex is already producing $2,200/mo and your numbers are accurate, it's a solid deal. 

Personally, I would consider pushing for a fixed rate during your term to eliminate interest rate risk.

With 22 units, you should be around $5-7/ft for flooring and paint interior paint. I would expect each bathroom to be another $2-5k depending on size and finishes. The balcony will probably be $500-800 each. If you do them one at a time, they'll charge more.

Hope that helps. As you said at the end, walk the property with multiple contractors to get more accurate pricing.

That's a great approach that I don't see too often. Well done.

You're closing attorney should have those docs readily available and can fine-tune it for your needs.

Full disclosure, I'm not a CPA, attorney, etc. so consultant your professionals.

For liability:
The most important thing is to operate your LLC(s) properly so that you don't pierce the corporate veil. IE, separate bank accounts, no cross-mingling of funds, etc..

Personally, I would keep rental properties in the same LLC to reduce the tax and accounting burden. It depends what your risk tolerance is, but I would keep rentals in the same LLC until my equity was north of $1M then put new rentals in another LLC.

Another way to reduce your risk is to get liability coverage and a commercial umbrella policy.

For taxes:

LLC is best for the vast majority of landlords. You're likely going to do a pass-through. You don't need to worry about S corps or C corps until your CPA recommends it.

@Damon Wong Hi Damon. It’s too early to tell since the funds haven’t had tile to reach maturity.

I would recommend analyzing the fund/operator as your normally would and look at the QOZ aspect as a bonus.

@Carla Holmes Welcome to BP. I’d recommend Sara with NRX for your QIM. She has always been great to work with.

Totally. I would consider starting with something smaller or figuring out how to team up or invest with someone experience in doing it. You will learn a lot.