All Forum Posts by: John G.

Makes sense, thanks @Brent Coombs

@John Montgomery When you said “operating as a D.B.A.”, does that require any sort of application process, registration or fees to city/state? Or is that literally a name you make up?

Thought so. Thanks @Brent Coombs!

Curious - when hoping to meet the 1% rule, do you add closing costs to that property's total price first?

@Rik Patel - I went the umbrella insurance route as well.

@Vidit S. Yep. Once I have enough equity that I'm an inviting target for litigation. The plan is to form a "parent" LLC*, then "subsidiary" LLCs in each state where I own properties.

*Delaware, Wyoming and Nevada all have highly pro-business climates, with low tax rates assessed on business assets and privacy protections on public filings. - https://info.legalzoom.com/form-llc-various-states...

Hey @Vidit S. - I went with a $1M umbrella policy that covers the property and me, personally. But if you have significant personal assets, I'm thinking this may not be best for you. I'd consult your attorney. I'm almost positive he/she will recommend you form an LLC.

I think your best bet is that you find someone in a similar financial situation as yourself and chat with them on what they did.

@Grant Rothenburger - I'm really only looking at this as a way to park my money that would otherwise be spent on rent. *If* I'm able to break even, given all the associated costs, I consider it a win. And if I make a little profit due to appreciation, that's a win-win (again, factoring in all relevant costs. In this case capital gains tax). Plan B will be rental income or breaking even on ownership, then sell with a higher chance of appreciation profit in a few years.

Thanks @Christopher Brainard. From the research I've done, property prices here are trending upwards. Especially in area I would be buying. But you're right, I neglected to factor in closing costs and other related fees.

@Andrew B. Attorney fees to buy, then again for selling, ugh.

I'm going to check the numbers to see if renting will cover my cost of ownership and check the HOA restrictions regarding subletting for a long-term buy/hold after living there for a bit. I'll also get more granular with the overall scenario (I do already know that rent would be ~ $1,700/month = $20,400/year)

I'll see if I can get some rough numbers w/regard to mortgage, taxes, insurance + closing costs.

Hi all,

I'm considering moving to another city for my first attempt at a fix-n-flip. I had planned on renting in this new city for at least a year during the entire process. But I've recently started thinking that it might make sense put a down payment on a condo in lieu renting. 

This way, after a year (or two), I could sell the condo and recoup some $$$ that would have otherwise vanished towards rent.

In this scenario, let's assume mortgage/taxes/insurance on the condo is roughly the same or slightly higher that rent/insurance on an apartment.

Makes sense to me, but maybe I'm missing something...?

Thanks in advance all!