All Forum Posts by: Ken Teng
Ken Teng has started 4 posts and replied 77 times.
Post: Using 50% rule on TK properties_barely cash flow

- Sunnyvale, CA
- Posts 77
- Votes 26
I think your order of using money is reversed. Use your cash first, which is interest free. Use HELOC later, as the interest rate may rise and you can get burned. HELOC can serve as the purpose as short term rain funds, given you can still take it out.
Post: Why invest in multiple markets?

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: traditional loan vs HELCO? Which should I start with?

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: Insuring your property- Using Actual Cash value vs Assessed

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: Next Property - Appreciation ($650K) or Cash Flow ($170K)?

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: Advice on buying your SECOND property

- Sunnyvale, CA
- Posts 77
- Votes 26
Put yourself in the bank's shoes. What do you care about? First the income to loan ratio. The income should include the house hacking rent (banks usually require a 2yr history on that to count, but any positive number counts). Second, your credit history. Third, the deal itself. If you can eloquently demonstrate how good a deal it is, i.e., the deal pays back the mortgage itself, you stand a good chance to be funded. But it is pretty difficult. You need to provide specific numbers with good justifications. So it is not the number of mortgages that counts. It is your paying back power that matters. Of course, the later mortgages will see a higher rate, because as you near your limit, the bank takes more risks.
As for LLC, I think it makes sense. Set up a LLC for later investments, so that if anything goes sour, your primary residence won't be affected.
You do not provide much detailed information about yourself. But based on the information I get, you do not have much cash at hand. If that is the case, it boils down to finding motivated sellers so that 1) you can put your creative financing to work (if the seller is not motivated, your chance of using your creative financing is very limited) and 2) getting an appealing price.
Post: New to BP, dilemma. Sell or rent?!

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: Sell, Refi, Rent What should i do

- Sunnyvale, CA
- Posts 77
- Votes 26
Post: LLC in-state vs. out of state

- Sunnyvale, CA
- Posts 77
- Votes 26
@Jim Chung There are three forms of LLC, simple LLC (not elected to be taxed as a corp), S-corp status or C-corp status. You can google them to find their definitions. Based on your situation, I recommend S-corp.
Post: LLC in-state vs. out of state

- Sunnyvale, CA
- Posts 77
- Votes 26
I am doing the same research. I can share my info gathered so far, but I am also looking forward to answers from expert.
It is generally recommended to form a OH LLC, because you need to pay Ohio government for registration anyways, and you need to pay taxes in OH.
I do not think LLC adds difficulty to 1031, because that is a standard procedure. You may have more difficulty acquiring loans.
LLC is for limiting liabilities. If you want to compartmentalize your assets and limit the loss within them, form a LLC around each piece.