All Forum Posts by: Account Closed

The tax consequence of any particular entity structure is likely to determine which structure makes sense for you personally.  

Because you self manage (as in managing the firm that manages the property) doesn't mean tenants have to write rent checks to your personal name. Such would mean that regardless of whether or not there was an LLC involved, from a liability perspective (if such were to ever arise), there would be no distinction between you as an individual and the business entity. Almost worst than commingling of funds.

You ultimately want an entity form that offers both the best liability and asset protection features.

Did you mean what % of ARV? Also, if any repairs would be required would also affect things as is what the target profit is and property's use.

To increase cash flow is sort of vague. There is always a reinvestment risk if you were to sell the property. If you are planning to reinvest in California or elsewhere may also be an issue.

 How do you plan to fund the investments? Cash only or financing of some sort? If financing, are you considering utilizing US or Canadian banks?

Do you have a specific location and property (or properties) in mind? There are often many of these projects at any particular time.

In terms of the widening gap between US and Canadian house prices since 2006, this seems to be a strange economic phenomenon. 

It is almost as if the US prices are artificially suppressed as both markets appear to have decoupled since 2006. However, the house price widening between Britain and the US is much worse than the widening between Canada and the US.

Tempted to say the market might have to correct in Canada but that seems to be only if you compare it to the US market. The housing markets in Britain and Spain actually moved much stronger than that of Canada compared to the US.

There has to be a variable the explains the pattern and behavior.

http://www.cbc.ca/news/politics/canada-u-s-price-gap-complaints-could-soon-trigger-investigations-1.2865235

http://www.huffingtonpost.ca/2013/04/23/canada-house-prices-us_n_3139918.html

http://www.economist.com/blogs/dailychart/2011/11/global-house-prices

Whichever makes the most sense financially. Your target market might also affect your action. Any additional expense would typically result in a proportional increase in the price at the every least unless you already substantially overpriced the property at $199K. 

Much isn't known such as what $ you bought the property for, current profit at the $199K, the ARV and total repair $ required .

 Failing to forecast and budget is almost certain to cause problems.

Based on the 'house price index' data, if the recent housing bubble 2006, 2007 etc. is any reliable indicator, it appears the market is still in a sort of 'rebalancing or correction mode' to align with what seems to be the historical trend. 

"Cancer causing chemicals"? It sounds more like the question should be whether or not the property is rentable. Failure to disclose certain life endangering issues may be considered criminal.  You want to run this by your insurance company to see what they think?

This might help: http://www.nolo.com/legal-encyclopedia/required-landlord-disclosures.html