All Forum Posts by: John Hyun

Hi everyone,

I've been doing plenty of research on this topic and thought it was time to seek some outside advice.  I've owned a 4-plex property in Long Beach, California. So my following questions are.

1. I work full time (W-2) how does an LLC on the property affect my tax situation?

2. Does forming an LLC in Wyoming and Nevada for my California investment a good idea?

4. Will forming an LLC make getting loans from a bank difficult? If so, is there other ways around this?

 I really appreciate your time. 

Thank you,

John H. 

I am about to close on a deal and need some advice.  These are the numbers:

Duplex in LB

Cost:         $550,000

Repairs:   $40,000

Total:        $590,000

Down:      $118,000 (20%)

Monthly mortgage + utilites, taxes, vacancy rate, etc:  $3,300.00

Monthly total rent:  $3,600.00

Cash flow:  $300.00

Caprate:  4.9%

The property is in a Class B neighborhood.  2 Detached buildings on a lot.  Would you do it?  Having a difficult time figuring out if its worth the investment and money down.  Thank you for your time and input!

@Matt Lefebvre IRR is something I've not dived into quite yet and need to learn. My strategy is to buy and hold, so if the market does decide to dip down I should be alright since Im in it for the long haul.

@Marcy Moyer  Thats a great point!  I've just been a little apprehensive due to the fact, most of the books i've read seem to be all about cash flow and not appreciation.  I do feel our market is different here in California than most parts of the country and a different strategy is feasible due to our high prices.  Thank you!

@Andrew Johnson Yes it would be actual dollars in my pocket.  I never thought of it from that perspective.  I might have mis-analyzed the strategy.  Thank you so much!

I am a newer investor and I need advice for a potential deal.  I currently own a 4 unit building and just had an offer accepted for a duplex in the Long Beach area, but now I am having second thoughts after crunching the numbers.  My strategy was to refinance cash out on my current property and put a down payment into a conventional loan for the duplex. My hope was to have more cash flow in total after the 2nd property, but after evaluating the comps in the area I realized I would be cash flowing about the same.  So essentially I would be cash flowing the same, but will have 2 properties.  It seems to me my strategy would be appreciation rather than cash flow for this deal.  Considering the Southern California market would you go for this deal?  Appreciate your time and input