All Forum Posts by: Keith A.

I recently purchased a condo and will be looking to find a tenant shortly. The HOA for the condo requires the tenant to fill out an application ($100) and does a background and reference check. They also require a $200 deposit.

I assume it would be in my best interest to also screen the tenant to protect my interests and take a deposit as well.

I wanted to get input to see what others do in this situation. Do you come up with a combined deposit and application fee to cover both the HOA and my app/deposit or separate everything out?

Any advice is appreciated.

I was recently looking at county auction sites and wanted to get some input on ways to protect yourself from buying these "as is" properties.

My main concern would be checking for clean title since this is not guaranteed. Are the steps for this to research and visit the property prior to the auction, run the numbers and then have someone check the title prior to making a bid?

Any information from people doing this would be helpful.

I purchased a property cash and was going to a cash out refi and a friend offered to act as a private lender. Currently the property is in my name and I was going to deed it over to an LLC.

Are there any issues if the loan is in my name and the property is eventually in the LLC? Is that making me vulnerable or unprotected? I see from the boards that investors do this a lot but wanted to check before consulting an attorney.

Great information David Beard. Thank you for the links. I'll have to dig more into this as it seems like the way to go.

Thanks everyone for the replies.

Does the seasoning for doing a cash-out refi start from the purchase date vs the lease date to a tenant? We are doing rehab work on it so it will take a month to get it ready to rent.

Bill Gulley, you make a good point since my brother and I will be doing several of these and we need a good strategy on the entity structure. I'm looking to get a good process going for this and just replicate as we continue to purchase.

Thanks for the response Neil.

How does it work with insurance when you go from your own name to the LLC? Is it straight forward to switch it to the LLC?

My brother and I recently purchased a SFH for cash and are doing some rehab on it before we lease it. The property is currently in my name but we are in it 50/50.

We would like to lease it and then do a refi and pull some of the money out to buy more properties.

My question is what approach should we use for the entity structure that allows us to also refi. Do I do the refi while it is in my name and then quit claim deed it to a multi-member LLC where my brother and I are 50/50 partners or do the opposite and refi it after it is in an LLC? A little confused over the approach and do not want to create unnecessary work by doing something wrong.

Thanks @J Scott for the response. I did some more due diligence (which wasn't difficult as you mentioned) and found out more and it doesn't have the mentioned restrictions. Only a small fee for lawn and sprinklers.

I wanted some advice on a SF wholesale deal. Are there any options on getting out of a deal if you find out later that an HOA is involved in that community?

My concern is that the HOA has some rules that may or may not allow an investor to buy the property or has some type of owner occupant clause.

Makes sense Bryan and great analogy. We'll use leverage responsibly and hopefully we'll get to that bigger pot in the future and pull back on the risk as we go and things progress.