All Forum Posts by: Joseph Brown

Greetings,

       Anyone have any rental properties in the Triangle area of North Carolina or rehab properties that they are looking to sell?

Greetings. 

I am trying to wrap my mind around the potential tax benefits, deprecation, and cash out opportunities of a fully owned property with the intent of reinvesting into another property and increasing cash-flow.  

Fully owned multi-family: 

Value                       $315,000.00

Rental Income           $28,680.00

Prop Tax                      $2,160.00

Insurance                     $2,400.00

Repairs  @ 2%                $573.60

Income Tax                  $8,604.00 (I currently set aside 30% of rental income)

This is where my questions start:  I want to cash-out the equity in the property to reinvest. My understanding is that I can either

1. Use 75% of rental income, and pull out 20% for a downpayment on another property

or 

2. Take 80% of current property value for the purchase. 

I don't want to overextend myself so I'm trying to see what the pros and cons are with these option (or any other ones that you might have) and what my financial limits are in considering other properties. 

Any thoughts, help and personal experiences are welcome and appreciated. 

Thanks

I came across this idea and would love someone to critique it The idea is to add an ADU on a SFP then set up an HOA so properties can be sold separately. The idea was pitched by a Portland Oregon wholesaler

Great feedback! Does the property ownership need to be transferred to the LLC or can the LLC just be set up to collect rent as its business?

Also if an LLC is formed would I need to legally become a "Property Manager" in behalf of the LLC?

All I know is that I've heard that the powers that be are no longer issuing new moorage slips. What's there is there.

Currently purchasing a multi-family dwelling that we intend to rent indefinitely After weighing the LLC vs Personal Umbrella Policy debate I was leaning towards the umbrella for this first unit. I just read the 10 rules of Land lording and one that caught my attention was "Don't be the owner" We do intend on self managing (at least this property) Does anyone have any suggestions for not "being the owner" while the tenant is writing checks to your personal name? Is there a way for a person to operate with a Dba without a entity? Or is it worth setting up the LLC? The property is owned outright Our long-term intentions are to secure more properties in a variety of strategies but mainly to hold/rent long term There may be some rehab work to get properties up to standards. My fear is that the LLC will hamper future leveraging opportunities Is this real?

I'm curious of any investors in Portland Oregon. What are your current strategies? Obviously there is appreciation happening. Is anyone able to get positive cash flow off rentals with 20% down?

Thanks for the kind welcome. 

The property is in the Brentwood neighborhood. It was found on the MLS

While I realize that there are better deals out there, we were after the quick passive income this property produced. Since it was a cash purchase it has about a 5% return. 

I grew up around property management and we are planning on self managing. 

Greetings! My wife and I close on our first rental property in just a few weeks. We are picking up a turn-key dual living property.  Our plan is to hold this one long term and generate rental income. 

Will be looking for our next deal as soon as we get some tenants in our first. 

Excited to start this chapter of our life and learn lots from you guys.