All Forum Posts by: Jon Reed

@Curtis M.

Also, you can get a loan in the name of your LLC from a bank. You will just be the guarantor on the loan. We have only had our LLC form 1.5 years and all of our properties have commercial notes in the name of our LLC and me as the personal guarantor. This will be the best way in order to keep all of those extra mortgages from showing up on your personal credit history.

If you put all the rentals in your own name then if you go to buy a car and they pull your credit then they will see a ton of mortgages in your name and then have to show them your business income and history to prove that those extra mortgages will not impact your ability to pay your car payment.

@Curtis M.

What are your concerns of having 4 flips going at the same time under one LLC? Liability risk (from contractors and purchasers) or financial risk (from your lender)?

@Jesse Smith

I am not sure what the cost would be... for a small 700 sq/ft 2/1 I would think $2k ish (big shot in the dark).

I would just done one unit at a time as they move out.

If you get a quote give us an update because I am curious what the bids would look like.

Selling it is an option.. however you will need to disclose the plumbing issues which will have a big impact on the price. Usually the drop is price is actually more than the actual repair... so I would not try to sell duplex . However, I am a buy and hold person so I have a natural tendency to lean towards keeping properties vs selling.

That would leave me with the option of repair.. and how to repair. I am a bit confused on how the driveway got poured over the main sewer line clean out... but I guess the why isn't important since it is already done. One thing I would look into is talking to a few dirt work crews in my area to see if there is another option besides removing the driveway. You may be able to get away with trenching on either side of the driveway and then tunneling under the driveway to push through a new main line. That way you will save a lot of time and money having to repour the driveway after the repair.

I may have just missed it but what is the actual renovation estimate? Is it 20% higher than the 35-45K? 

Okay! In that case I would not cover up those pretty hardwood floors... those are probably a nice selling feature of your property and plus covering them would only make a very small difference.

If you want a once and for all solution I would get a few quotes on the cost of dropping your 1st floor ceiling height by 6-12 inches and installing a false ceiling. It should not be that expensive and should not take a contractor long to complete. You will just need to figure out what kind of drop ceiling you want to use.. You can actually use lumber and drywall to make a new ceiling... you can use some variant of acoustic tiles... could even use beadboard if you want something that looks more period correct.

However you decide to do it the winning pieces is having them install sound deadening insulation like QuietZone or Safe-n-Sound in the gap between your false ceiling and the original ceiling. If you use a 6"+ thick sound deadening insulation then your tenants will not have to worry about noise from above again.. and the false ceiling will not detract from the rentability of the units.

Win-Win!
 

This does sound like a nice idea... but if your tenant required you to go through the entire eviction process in order to get them out then I would not give them any opportunity to get back into that property. Yes, there is extra cost of getting there stuff out and storing it for 30 days but what if you do allow them in and they just grab 10 items and walk back out? Then you still are stuck with removing their stuff and storing it for 30 days.

Bite the bullet and get there stuff out fast so you can turn that property and get a paying tenant back in.

You can get a commercial loan on your investment property. The bank will write the loan into the name of the LLC but you will be the personal guarantor on that loan (so if you default they will come after you and not just your LLC). I have not personally seen a 30 year commercial loan... all of our properties are on 20 year commercial notes which we got through a local bank.

Does the apartment building have 10-12 foot ceilings? Most properties of that age do... so if you say yes... then I got some ideas for you!

You sure can, just have to find a bank that will make the deal. Start calling around to local banks.

We refinanced out of a home that was only valued at 45K a few years back.