All Forum Posts by: Jonathan Wilks

@shawn I find that age just makes you be a little more creative some times, however age has also been a good return for me. 

In my experience it depends on location and feasibility of trashing out the units, and HOA fees. I ended up buying renovating and holding some that cash-flowed immediately. I flipped a few in high rental and purchase places in Anaheim. I have a friend who has recently flipped some in mission Viejo and they have sat for about 6 months on the market. I think the age of the condos really matter also. the condo i ended up keeping it was built in 64, and original cabinets were rotted out and infested. I also ended up having to replace all the plumbing into the unit because of the care provided by previous owners.

First and foremost a couple possibilities. i would look into tax credits for the business. and if your friends business can possibly receive some. In addition i would check to see what their current house would rent for to give a bank a potential revenue generation for that house. Any lender is going to look at their current debt to income ratio to evaluate a loan. If they have no debt besides their primary resident. They could possibly leverage by refinancing to 70%, of LTV, however this is what i consider a high risk investment doing it that way. In my opinion i would try to reduce the primary mortgage to create a better cashflow before stepping up to a larger mortgage, and still having the primary resident.

Depending on the location, if it is a high vacation go to spot. One thing to know is that vacation rentals have to be at a higher standard (model home/ Nice hotel). This might create initial higher renovation cost. 

To stay booked and to receive highest price for your rental. It will also help with the managing of an vacation rental.  The additional cost of cleaning and preparation for turnover of units. 

My properties are in California, however i have been watching Indianapolis, and ohio. I am trying to find which market i believe will have a greater return. 

The affordability rate a combination of jobs, cost of homes, and low tax rate. In addition the cost of rents. It creates an ample market to make decent returns on cash on cash investments. 

No, it wouldn't be acceptable and actually it would be ill advised. The most traffic to your property occurs. when it is initially placed on the MLS. I will state one exception depending on what kind of property it is such as a vacant land, and depending on your market.

@ neil you have covered pretty much everything. The reason though why many place a property in a LLC is to create separation from the property in the case of litigation. I do believe the umbrella policy is a must. another option may be a trust to create separation. I have heard of people using that to create some separation along with a umbrella policy. I know it is a lot easier to move a property in and out of trust.

do not construe this for legal or tax advise just another option i have heard others use. 

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Wishing you the best! 

Jonathan Wilks

First and foremost i would recommend building your education of your area, and what makes the most sense flipping(what are people buying and where) or renting what are properties renting for and what the cost of a rental is to purchase. In addition figure out what your strategy is in regards to your goals. Once you know your goals it will determine what your strategy and what kind of properties you may decide to purchase.