All Forum Posts by: John P.

 On one hand I agree that with more properties you should get a better deal on pm Fees. I have had the same happen as I own 18 in one market. However, keep your eye on the ball. The pm fees are the red herring. Keep an eye on their repair and rehab fees. I have seen several property managers where that’s really the profit center in my opinion. 

I think the OP is referring to traveling nurses which is very common out west. 

@Elizabeth Goff and anybody else who has invested in RWN syndications I would love to hear how they went. I was thinking about throwing a few bucks into the Carson City project.  Would love to hear positive and negative experiences the RWN syndications more so than their affiliates that you can buy single family homes through. TIA.

Get it done by an experienced attorney. The reality is you are doing the LLC for protection in the unlikely event of a lawsuit. If that happens you will want everything to have been set up right. Not a good place to be cheap in my opinion.

I personally don't think it's a big deal. If they otherwise good tenants I'd ignore it and move on. A few bucks on the water bill is not worth worrying about in my opinion.

As a couple others have stated you have enough money but do know real estate is not a passive investment unless you buy-in to a syndication or something like that. 

I am not sure it's actually 10% if you live out of state. Here are the marginal rates I found online for California.

For single and married/registered domestic partners filing separately:

• 1 percent on the first $8,544 of taxable income
• 2 percent on taxable income between $8,545 and $20,255
• 4 percent on taxable income between $20,256 and $31,969
• 6 percent on taxable income between $31,970 and $44,377
• 8 percent on taxable income between $44,378 and $56,085
• 9.3 percent on taxable income between $56,086 and $286,492
• 10.3 percent on taxable income between $286,493 and $343,788
• 11.3 percent on taxable income between $343,789 and $572,980
• 12.3 percent on taxable income of $572,981 and above

I don't have the cajones for that but good for you.  I like a high deductible but I like having insurance. Where did you find a $10m umbrella?  That sounds interesting. Do they not require some underlying coverage?  I thought that was a prerequisite for most umbrella policies!?

I feel like I could write a book... a long one.  Some key mistakes:

- Focusing on gross rents without considering all costs of ownership; 

- Looking at pro formas and thinking they could be true; 

- Not paying enough attention at first to what my PM was doing; 

That's a good start but I could come up with more.  Good luck!

I like as big of a security deposit as the law allows that they can afford.