All Forum Posts by: Jim Rivell

Hey Max, we're doing student rentals here in Eastern PA. So far things have been great with no complaints and we're in an investor heavy community who are all doing well in the student rental market. You'll definitely find that cash flow is much higher, but you're going to have more Maitenance/turnover etc. 

Let me know if you have any more specific questions and I'll be happy to help out.

Gregg,

My partners and I bought our first rental under our personal names and during a cash-out refinance we transferred the title to our LLC.

1. I think this depends where you look. Some will own in personal names, others under LLC each investor with a different way of protection.

2. Mentioned this above, we needed to wait about 6-months for loan seasoning to do the refi. So we were strictly affected by loan seasoning not title transfer.

3. Umbrella coverage always. Had it for our personal names and now it's switched over to the LLC.

4. Not completely sure on this. I believe title provided insurance then cancelled first and started a new plan after the title transfer but again im not completely confident here so take my word with a grain of salt.

5. Really depends. For us, with 3 people being our very first investment property it was easier to get a conventional mortgage then it was to get a loan for an LLC. Our ultimate goal was to have all properties under the LLC but this was a little bump in the road we needed to navigate in the beginning.

I've had a situation where a mortgage was under an LLC I owned but since I was a personal guarantee to the loan it still affected my DTI ratio. For example, I had owned an investment property in an LLC and when I went to qualify with a different bank to get a loan for my primary home the investment property mortgage still affected my DTI and they did not use rental income to offset, so I would say it truly depends on some factors. Best to have this discussion with your lenders and see the correct way to approach it.

Hey Seth - I know it can be daunting in the beginning but I would try to get a referral for a Real Estate lawyer and spend 15-30 minutes on the phone with him asking these questions and what systems you can put in place to protect yourself. With only 1 rental, the likelihood of a lawsuit is small relative to someone with 500 units so I would say you do have some "time" to research and decide how you want to approach.

Anyways, I know a lawyer might sound extremely expensive especially after buying your first property and not having a ton of money or reserves, but it is money well spent to sleep well at night.

Hey Gabby - you're unlikely to find an investor willing to mentor you by using the method you are. It's kind of awkwardly asking someone to prom. If you're trying to find a BP mentor I would be active in the forums and make connections and build relationships, let that mentorship role build naturally where there is value provided on both ends, not just asking for the mentor for advice and there is nothing in return.

If you'd like to find one in your local area, and this is what I'd suggest since they'd be able to answer your area specific questions, I would attend as many RE meetups as possible and again just build natural relationships with people in the room. Find ways to bring value to others and you'll naturally build a few mentors you can rely on.

Not sure if it is unconventional, but I sometimes will call "For Rent" signs or listings on Zillow and ask not about the property but about the PM or Owner and ask to connect. Sure fire way to get connected with those doing exactly what you're trying to do.

 Any specific podcasts you recommend?

Other than using BiggerPockets Forums, what other platforms are you guys using to learn or engage with the community?

Feel free to mention creators, blogs, websites, podcasts, courses etc. I’m generally looking for other places to hangout and learn from like minded individuals! 

Agreed with Logan, we also use Chase Ink Unlimited. Great catch all card. You can typically find the CC requirements on the Chase website. It is not recommended to use your personal CC for businesses expenses due to co-mingling (I'd research this or chat with your CPA about it). 

I'd agree with the above and say it would be wise to look around to hiring a manger. Especially since you're out of state and won't have boots on the ground. I also see PM being anywhere from 8-10% plus/minus depending on area, amount of units, type of rental etc.